Inter Organizational relations (IOR) plays an important role in enhancing firms activities. By utilizing IOR, firms may acquire knowledge, access to economic inputs, and build their competitive advantages. Meanwhile, automotive industry which is characterized by high degree of vertical interdepencies generally retain a well developed and great varieties of IOR.This paper aims to analyze IOR in Indonesiaââ¬â¢s automotive industry by conducting case studies of three Japanese firm tenants. The result of the study shows that IOR occured in those three companies. Nevertheless, the IOR differs among the tenants in terms of types, causal factors, driving factors, and barriers. These variations depend on the firmââ¬â¢s position within the industrial structures developed by Japanese automotive manufacturers. The closer the firmââ¬â¢s position, the stronger the IOR. The study also identifies that IOR in the second layer firms contribute to the firmââ¬â¢s learning activities and their technological capabilities.
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