Do Larger Firms Have More Interfirm Relationships?

Yukiko Saito, Tsutomu Watanabe and Mitsuru Iwamura

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: In this study, we investigate interfirm networks by employing a unique dataset containing information on more than 800,000 Japanese firms, about half of all corporate firms currently operating in Japan. First, we find that the number of relationships, measured by the indegree, has a fat-tail distribution, implying that there exist "hub" firms with a large number of relationships. Moreover, the indegree distribution for those hub firms also exhibits a fat tail, suggesting the existence of "super-hub" firms. Second, we find that larger firms tend to have more counterparts, but that the relationship between firms' size and the number of their counterparts is not necessarily proportional; firms that already have a large number of counterparts tend to grow without proportionately expanding it.

Pages: 8 pages
Date: 2007-05
New Economics Papers: this item is included in nep-bec, nep-mic and nep-net
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Citations: View citations in EconPapers (21)

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Journal Article: Do larger firms have more interfirm relationships? (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:07028

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