Does vertical integration facilitate coordination between infrastructure management and train operating units in the rail sector? Implications for Japanese railways

Eri Nakamura and Hiroki Sakai

Utilities Policy, 2020, vol. 66, issue C

Abstract: We investigate why vertical integration facilitates coordination between infrastructure management and train operating units in a railway system. An analysis of three Japanese rail companies shows that informal communication is significant for overall coordination, and mechanisms enhancing informal communication are observed mainly at the task group and individual levels. In contrast, mechanisms enhancing formal communication are observed mainly at the organisational level. Although these mechanisms mitigate coordination problems observed in vertical separation, their employment requires a transition to vertical integration, which can be an option in high-density areas where close coordination is required.

Keywords: Coordination; Vertical integration; Railway (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:66:y:2020:i:c:s0957178720300941

DOI: 10.1016/j.jup.2020.101099

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