Ramen noodle supply geographies in the Kansai region of Japan: Transaction costs and semiotics in the ‘make or buy’ decision

Abstract

Restaurants are an important part of the cultural economy of, cities. Ramen noodle shops are Japan's most popular type of restaurant. This paper provides a geographical analysis of ramen restaurant noodle supply in the Kansai region centred on Osaka, Kyoto and Kobe. Theconceptual point of departure is the age old question in transaction cost theory: to make or buy? By drawing on theory in economic geography, this paper illustrates how this decision is constituted also by cognitive and cultural concerns, and communicated via semiotic cues that are evoked in the Japanese concept of kodawari or commitment to authenticity and craftsmanship, as well as the institution of noren wake, which is a form of social reproduction characterized by enduring loose ties between chefs and the shops where they trained as apprentices. Drawing on three years, of data from 467 ramen shops in the Kansai area published in Kansai Ramen Walker magazine, the author uses ArcGIS to plot restaurant addresses in relation to their mode and location of noodle supply. This method allows for visualization of regional patterns that are then explored through ramen shop and noodle supplier firm case studies and neighborhood scale analysis. Ramen shop noodle supply is primarily local, either on site, or, procured from suppliers in the Kansai region. This pattern reflects economic efficiency in regards to transaction costs. However finer, grained analysis reveals why the variety of choices seen across the region is shaped by cognitive and culture processes that are most evident at the neighborhood scale.