Supply-Chain Network Analysis of Kyoto's Traditional Craft Industry

Daisuke Sato, Yuichi Ikeda, Shuichi Kawai and Maxmilian Schich

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

Abstract: In recent years, due to changes in consumer demand, accompanied by generational transformations, the traditional craft industry in Kyoto has lost substantial sales revenue. In this paper, our goal is to characterize Kyoto's traditional craft industry from the analysis of the supply chain network between individual companies within the Kyoto region. We clarify the community structure, the bow-tie structure, the robustness, and the vulnerability of the supply chain network as keys for sustainable growth. From the community detection and bow-tie structure analysis, it is evident that the traditional craft industry still occupies an important position in the industrial network of Kyoto. Furthermore, we have clarified the relationship between the network characteristics of modern and traditional craft industries and their profitability and productivity. It became clear that the traditional craft industry has a different network structure from both the modern consumer game industry and electromechanical industry. Modern industries have a core loop structure in the industrial community. The companies there create high added value and play a role in driving the entire industry. On the other hand, because Nishijin fabric and the Kyoto doll industry don't have a loop structure, the profitability of the industry is declining. This is presumed to be a factor in the decline of the traditional craft industry.

Pages: 20 pages
Date: 2020-05
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Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:20044

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