An analysis of a firm’s capacity in Mazda’s Keiretsu

Abstract

Capacity is defined as the power resulting from the specific position of a company in a network organization. This article extends the theory of network organizations to examine Mazda’s Yokokai Keiretsu, and proposes a new approach to calculating a firm’s capacity in a network. Capacity is divided into two categories, take-in capacity and take-out capacity, and the gap between them is called the capacity difference. We analyze the impact of capacity difference as a determinant of corporate performance in network organizations, thus providing a new perspective for successful corporate management.