An Analysis of Network Structure in Mazda’s Yokokai using the DEC Spatial Model

By examining networks is possible to understand the nature of inter-firm relationships among organizational entities in any given corporate group, such as Toyota’s, Nissan’s or Mazda’s Keiretsu. Recently, a new three-dimensional spatial model has been developed that allows organizational scholars to ascertain the structure of a corporate group, the position of the individual firms, and the determinants of the firm performance. This new spatial paradigm –called the DEC spatial model– composed of degree, effective size and capacity that assessed the relationship between Euclidean distance and sales. Although it advances our understanding of networks, the bulk of the research is based on cross-sectional data, it is not possible ascertain the real nature of the relationship between the distance and sales. Instead, the analysis of networks requires using time series data as all the corporate members of a network are ongoing- concerns. To augment our understanding of the nature of inter-firms networks, the interrelationship between distance and sales is examined using time series data drawn from Mazda’s Yokokai in 1986, 2004 and 2005. More specifically, in this paper the data on transactions were collected and used to calculate the Euclidean distance using the DEC spatial model. The position and its determinants of all individual firms are identified and the trend of structure changes is discussed. Based on the findings of offered and avenues of future research are suggested.