ABSTRACT
Vertical integration has been a popular strategy with Japanese managers, particularly in
the electronics industry where many firms have considered manufacturing process
improvement to be an important competitive advantage (Noguchi 2012; Sturgeon 2006).
Preferences for vertical integration or quasi integration through keiretsu and long-term
supply relationships with other Japanese firms have been identified in other industries
including the auto industry (e.g. Ahmadjian and Lincoln 2001; McGuire and Dow 2009;
Miwa 1994; Tabeta 1998). However, changes in the competitive environment, the
introduction of digital technology, and other factors have affected the relative
effectiveness and attractiveness of vertical integration, particularly in the area of
electronics. This research investigates the involvement of Japanese information
technology and electronics manufacturers in the Liquid Crystal Display (LCD) industry,
to examine evidence about whether these companies developed and maintained vertical
integration strategies or adopted alternative (i.e. non-integration) strategies over a study
period beginning with the introduction of active matrix LCD in 1990 and ending in 2009.
