A geographical study on the strategic alliances between the local industrial complexes and their foreign affiliates

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This study aims to explain the relations between overseas operations and the locality of the local industries through a case study of glove- and towel-related industries in Shikoku, Japan. It is revealed that clarification of the importance of the locality and reorganizing overseas operations is critical. From now on, a competitive model of the local industrial complex will be one which consists of firms which aim to expand internationalization of management through flexible alliances between their foreign affiliates, keeping the function of research and development in the locality of “jiba,”and others which continue to produce small number of exclusive high quality professional goods in the locality. In other words, heterogeneity of firms in the complex will make it competitive in the market.