Journal of Japanese Management Vol.6, No.1, November 2021

ISSN 2189-9592

Strategic Reconfiguration of Transactions in the Japanese
Manufacturing Industry: A Case Study of Quantifying theProcessing Designed by a Supplier
Satoko Uenishi

Kindai University, Faculty of Business Administration
E-mail: suenishi@bus.kindai.ac.jp
Abstract
This study investigates the reconfiguration of transactions that occurred due to criteria
and measurement devices designed by a supplier in the Japanese manufacturing industry1.
Assemblers played a significant role in the development of this industry by providing
financial and technical support. Other industry participants also contributed to thisdevelopment. Previous research mainly focused on transactions between assemblers andsuppliers with the assembler-led control mechanism. In contrast, this study focuses ontransactions with multiple types of companies, such as assembler, supplier, material
manufacturer, and tool distributor, and investigates changes of control mechanism. The
proposed framework is grounded in the sociology of markets and the new institutionalism oforganization studies, and it addresses calculative devices as a control mechanism oftransactions involving diverse interests. The case study describes how Yamamoto Metal
Technos Co. Ltd., a typical secondary supplier, quantified cutting processing based on its own
technology achieved through considerable business experiences, for making better
negotiations with assemblers. Once the newly designed criteria and measurement devices
worked as calculative devices that withdrew companies’ interests had piled up underassembler-led transactions, reconfiguration of transactions began based on those interests.
This study’s results suggest that the design of calculative devices is critical in strategic
reconfiguration for attaining advantageous and important positions in transactions.
Keywords
Reconfiguration, calculative device, calculative agency, rules of thumb, quantify
suppliers in the Japanese manufacturing(1) IntroductionInthetransactions
1

past,

in

betweenthecontext

assemblersofindustry, the assemblers primarily gaveandorders to the suppliers and provided funds

This study focuses specifically on the transactions occurring in the automobile and electric
appliances sectors in the Japanese manufacturing industry.

1

Journal of Japanese Management Vol.6, No.1, November 2021

ISSN 2189-9592

and technology to them. In contrast,

studies focused on suppliers; however, they

suppliers focused on the subcontracting

mainly usedbusiness.

thisframework as in other studies (e.g., Ueda,

assembler-led mechanism featured traits

2006; Seki, 2011). That is, the previous

such as “commission as a bundle,” “lump-studies have mainly focused on thesum subcontract,” “effective competitiontransactions with assembler-led control

among a few suppliers,” and “a long-term

mechanism even though there exists aandtransaction”

greater number of new transaction styles(Fujimoto, 2001). It also enabled costwith diverse interests than before. For

reduction and quality improvement andexample,became the most efficient transaction-

manufacturers,

control mechanism until changes in the

manufacturers,

Japanese manufacturing industry’s social,recently begun to negotiate and directly

economic, and technical conditions in the

conduct

2000s.

However, little attempt has been made toBystablethelatecontinuous

1980s,

the same

viewpoint orassemblers,andmaterial

machinetool

wholesalers

havetransactions

withsuppliers.

understand these new and alternative

After these changes, we could observeandcontrol mechanisms of diverse interests,

developed new theoretical viewpoints towhich were not observed in previous

analyzetransactions 2.

newtransaction
thosestylesappeartransactions,

such

in

Japanese

In contrast, this study focuses on

manufacturing industry due to overseas

diverse interests and transactions withrelocation of the production base (e.g.,multiple types of companies, such as

Shimokawa, 2002, 2004; Sei, 2016), thesupplier,

concept of modular architecture (e.g.,

manufacturer, and tool distributor, andBaldwin and Clark, 2000; Sako, 2003) andinvestigates changes caused by a supplier’s

the concept of networks loosely connecting

actions to make advantageous negotiations

independent companies (e.g., Fujimoto et

to receive stable orders from assemblers.

al., 1998; Seki, 2011). Related studies

The advent of new transaction styles cancarefully examined new transactions inalso lead to newer control mechanisms.

detail, through the assembler-led control

Rathermechanism. Some studies focused on

assembler-led control mechanism, studies

suppliers which sought to develop theirneed to explore the control mechanisms

own technology or goods to survive. Sekitargeted(2011) described supplier effort that does

relationships in which multiple interests

not depend on assemblers as "autonomy"

are intertwined. This implies that there isand introduced such cases in his book. The

still scope for building a strong ground to

For more details of the reviews ofassembler-led control mechanism, seeprevious studies on the historical andUenishi (2016, 2017).

globalization

2

theoreticaltheconsiderations

of

as

the

2

assembler,

than

focusing

towardmaterial

only

on

the

transactional

Journal of Japanese Management Vol.6, No.1, November 2021

ISSN 2189-9592

study new events that did not occur underdevelop a transaction-control mechanism

the assembler-led control mechanism ofthattransactions and examine how suppliersconfigures diverse interests. As mentioned

canabove, different transaction styles havedesignacontrolmechanism

represents,

demonstrates,

andbegun to appear in Japanese companies.

strategically.
This study investigates how suppliers

Direct negotiations with suppliers havecan strategically change the transaction-

begun to appear with assemblers, material

control mechanism to their advantage by

manufacturers,

considering

manufacturers,

diverseinterests

andmachinetool

wholesalers.

This

and

reconfiguring the transactions. In otherstream is counter-current compared to thewords, there was an opportunity to see theprevious control

appearance of the supplier-led control

studies mainly focused on the assembler-

mechanism of transactions rather than theled and supplier-follow control mechanism

assembler-led

mechanism.

of transactions. They did not pay muchSpecifically, this study discusses how

attention to the control of diverse interests,

suppliers can develop and design neweven though the marketplace is a place for

criteria

variousandcontrolmeasurement

deviceasmechanism.

companies

havingPrevious

different

transaction-control mechanisms and takeinterests. To understand the transaction-

advantage in transactions. To discuss it,

control mechanism of diverse interests likethis study used the case of Yamamoto

the marketplace, the concepts of tools andMetal Technos Co. Ltd. (Yamamoto Metal,

rules in the study of the sociology ofhenceforth). This company is a typicalmarkets would help. The sociology ofsecondarymarkets investigates the mechanism of

supplier

for

metal

cutting

processing. It receives blueprints andmarketorders from assemblers and processes the

problems that arise due to conflicts oforders through basic techniques. However,interests

it expanded its business, more than typicalrelationships are formed (Fligstein andsuppliers usually do, by developing theDauter, 2007). Callon (2004) investigatedcriteria and measurement devices designed

toolswith quantified processing data; this cancalculative devices and act as an anchor inhelp in the construction of a more efficientadjustingmethod of processing and solve problems

relationship formation.

thatoccurred

under

the

previous

are

and

In

transaction-control mechanism.

formationbydescribing

addressed

rules

that

conflicts

Callon’s

of

and

may

serve

interests

discussion,

how
how

as
and

economic

activities are described as calculative
processes involving non-human elements,
such as technologies and artifacts. A(2) Theoretical framework:
Reconfiguration through designingcalculation is not innately performed as

rules and tools

assumedinThis section proposes a framework topossiblewhen

3

economics

but“distributed

becomes
calculative

Journal of Japanese Management Vol.6, No.1, November 2021

ISSN 2189-9592

agency” (Callon and Muniesa, 2005, p.

not an internal attribute but rather a1237), which we can find in every actor, isrelational effect formed by a configuration.

associated

The calculative agencies change as the

with

each

other.

This

calculative

configuration

devices that provide logic and consistency

Tsuchibashi,

for calculations, such as double-entry

calculative agencies and configurations

bookkeeping and calculators (Callon andcontinue to change, designing calculative

Muniesa,devices means participating in the shaping

association ishandled2005).

by

In

other

words,

varies
2006,

236).

While

of

calculative

visiblereconfiguring existing ones; it does not only

through calculative devices that appear asmean responding to demands or satisfying

tools and rules and makes associationneeds (Callon, 2004, p. 9).

becomes

calculative

anddistributed calculative agency (henceforth,agency)

new

p.

(Ueno

agenciesorpossible; it creates relationships that

This raises the question of the direction

involve both non-humans and humans.

in which a calculative device is beingThis

designedsocio-technicalarrangement

orwithout

concrete

calculative

formation with non-humans and humans isagencies and configuration. In Callon

called a configuration (Callon, 2004; Callon(2004), it was considered that various rules

and Muniesa, 2005). In other words, aand tools support the calculation as devices

configuration is collected and associatedandwith calculative agencies and “what they

formalization. It has not much explained

want, think or feel depends on thewhyconfiguration

devices for calculation and the direction of

of

their

socio-technical

focus

was

othersontheincludedevices

those

for

calculative

designing them. Why formalization isenvironment” (Callon, 2004, p. 4).
Therefore, the key to configuration isimportant has been explained by the new

the calculative device; depending on theinstitutionalism in organization studies,calculative device design, it will control

developed

how calculative agencies are formed andmodernization theory (1920). According to

influence configurations. Callon (2004)

thepoints out that “We must be aware that

ultimate value used as a reference in thewhen designing ICTs, what is at stake issearch for appropriateness of behaviors

the type of human agency, of human being(e.g., Clegg, 2005; Lounsbury and Carberry,

we want to develop” (p. 9). At the same time,2005), and the ultimate modern value is

Callon (2004) also notes that discussion on

formal rationality, indicating the technical

the

is

rationality of an instrumental process (e.g.,various

Kanno, 1971). Therefore, being efficient ordesirable

insufficient;designconfiguration

therefore,

based

theory,onrationality

Max

Weber’s

represents

an

and

following efficiency is taken-for-granted inexperimented upon in the future. This

the modern times; behaviors can be

means

keep

justifiedaschanging because the calculative agency isfollowing

efficiency

configurations
that

will

be

formedconfigurations

will

4

technicallyandrationalbyotherswithJournal of Japanese Management Vol.6, No.1, November 2021

differentinterests

canbethroughdisplaying

theefficiency

ISSN 2189-9592

Considering the above discussion, aconvinced

theoretical framework that is as follows,ofwill be used to analyze the control

behavior.

mechanism

However, there is one thing that must

andreconfigurationofbe remembered. Even though our behavior

transactions in this study.

can technically justify and determine,

forms its calculative agency using existing

formal rationality quantifies values as well.

calculative devices and configuration. By

Eacharchivingsociety's

uniquevaluesqualifyits

calculative

A company

agency,thethrough relativization; as a result, formalcompany can design a new calculative

rationality unavoidably embraces thesedevice that displays the more efficientvarious unique values (Kanno, 1971; Clegg

ways of other companies. Therefore, theand Lounsbury, 2009). It means that whencalculative

we observe and follow the efficiency incompany will be used in other companies’

numbers, quantified unique values arecalculations, and they will depend on it.

implied in those numbers. Therefore,

Simultaneously, the other companies willcompanies trying to be more efficient isalso attach the unique value of theirtaken for granted. At the same time, being

company, which is implied, in those devices

efficient

betweenthrough the design. When companies begin

rationality

to calculate their actions based on thesecancompanies

bring

becauseconflicts
formaldevicedevices,designedthebyembraced a variety of distinct values, andnewthe contradiction between them manifests

mechanism of transactions changes to theas a conflict (Meyer and Rowan, 1977).

newcalculative

existing

one

devices

controlandthetransactions start to reconfigure.

Here I would like to emphasize that thisframework does not focus on the efficiency

In the next section, these research steps,

itself. Efficiency is just a modern ultimate

archiving the calculative agency throughvalue that shows better or worse inexisting

numbers and every company justifies theirconfiguration,actions

However,

devices such as tools and rules, otherefficiency can be different for every

companies depending on those devices andcompany. Efficiency can be different fortheassembler and supplier because they havetransactions, are described empiricallydifferent interests and unique values. All

using the case study of Yamamoto Metal. In

efficiency can be shown in numbers andthe case study, data were collected mainly

when that happens, those unique values

via semi-structured interviews with theand interests would be hidden in numbers.

president of Yamamoto Metal between

A Calculative device is just a device that2008 and 2016 and additional interviews

hides those interests or unique values in a

conducted on the material manufacturer,

black box and shows formal rationality liketool

efficiency in numbers.

manufacturer who had transactions withbyreferring

to

it.

5

calculative

initiation

devicesdesigningof

manufacturer,

calculative

reconfiguration

and

and

cuttingofoilJournal of Japanese Management Vol.6, No.1, November 2021

ISSN 2189-9592

the company, in 2010; further information

As a result of the analysis, the company

was added from internal documents andfound that the current method of operationcompany websites.

was not worth the cost and the cause ofdestabilization was the way of receiving
orders.

(3) Case Study: Design of calculative
devicesandreconfiguration

Therefore,

YamamotoMetalchanged its approach from increasingof

specifictransactions 3

orderscustomers,

1. Calculative agency of Yamamoto Metal

receivedmostlyfromrelyingon

specifictheir

Yamamoto Metal has been in the metal

relational skills and specializing in specificcutting processing business as a secondary

processing, to increasing various orders

supplier in Osaka since 1965. Today, thefrom different customers. As a result, thecompany also operates a measurement andcompany began diversifying the orders

assessment service for processing. At thereceived from a broad range of customers.

timecompany

Even when the volume of orders was small,experienced instability of transactions as it

machines could operate in a balanced way

catered to the assemblers’ demands, suchby coordinating the same processing ofasorders, and a stable production system was

of

its

extremely

founding,

short

the

deadlinesandseasonally changing volume of orders.

developed.

Additionally,

thischangeThese demands brought the company to aenabled Yamamoto Metal to accumulatesituation wherein there were terms with nolarge and diverse processing data thatorders, a mismatch between volumes of

could not have been obtained if theorders and the number of machines to use.

company was specializing in specific orders

To solve the instability and these problems,

received from specific customers.

Yamamoto Metal tried the typical method-

This experience led Yamamoto Metal toincreasing the volume of orders received

search and build a full-fledged system tofrom specific customers, at first. However,measure processing and collect various

thisin thedata. For example, the company had small-availability of machines. The machines

scale factories that were not suited forneeded for those orders alone were inmass production. One of the factories

operation while the other machines wereturned into a factory specialized forunused. Playing along with the assembler-

stainless steel processing that could not be

led control mechanism destabilized its

processed together with iron. Anotherbusiness even at that time.

factory turned into a factory specialized for

createdmore

imbalance

To find a solution to this problem,same-order spans. Other small factories

Yamamoto Metal started analyzing thealso specialized by taking advantage ofprocessing system using the knowledge of

theirmanagement engineering of its president.

processes, and collecting more various data.

3(2017).

For further details and the extended
version of this case study, see Uenishi

small

6

size,

measuring

variousJournal of Japanese Management Vol.6, No.1, November 2021

ISSN 2189-9592

collected,

with the rules of thumb became an

Yamamoto Metal was able to analyze theincreasingly difficult task, but no one hadprocessing and find problems and solutions

anby using those data. It allowed Yamamoto

Yamamoto Metal an opportunity to present

Metal to exhibit more efficient ways of

a way to fill the gap and solve the problems.

processing to its clients in order to solve

Accordingly, the company designed criteria

their problems. This assessment service(rules) and measurement devices (tools) bybegan to attract companies that struggledusing its calculative agency.

More

varieddata

werealternative

solution.

This

gave

with various issues under assembler-led
control mechanism of transactions.

2. Criteria designed as rules

Yamamoto Metal formed its calculative
agency,themeasurement

data

to the origin of processing. That is, aaccumulation techniques based on its

material manufacturer is the first target to

production system, while struggling withdesign rules and tools. For Yamamoto

the prevailing issues under assembler-led

Metal, it could create an environment oftransactions. The company noticed how its

less competition with other suppliers

calculative agency helped make processing

because if the material manufacturer

more efficient and, in turn, how it could

would depend on its data and technology

solve the problems that occurred inand use them to produce new raw material,assembler-led transactions. This means

Yamamoto Metal was the only supplierthat the impact of its calculative agency

that knew how to process it with best effort.

was not limited just to assemblers, but also

For the material manufacturer, the data

other companies involved in processing,thatsuch as material manufacturers, machinecollected from various materials processing

tooloperations

manufacturers,

Yamamoto

Metal

had

already

cuttingoilcompanies

also

Material manufacturer used to receive

recognized that the rules of thumb, such as

material drawings developed by assembler“see the processing with the blade of thefromtool” and “best measurements should be

developed and manufactured materials

taken here,” could not solve problems

according

anymore and they needed to measure andmaterial manufacturer recently received

quantify processing. Each company madefewer material drawings and developed

local optimizations, and the differences

and manufactured material through directcaused by them were complemented by the

consultations with processing supplier via

rules of thumb. However, the gap between

processing drawings. In addition, thetheoretical numbers in simulations andassembler demanded shorter R&D period

actual numbers in the processing haveand cost reduction, owing to which thewidened as the performance of materials

material manufacturer began to face theand machines improved. Filling this gap

challenge of developing high-quality, high-manufacturers.

These

and

and

The gap starts from the company closest

7

were

processingtotheneededdesperately.

supplier
drawings.

and

then

However,Journal of Japanese Management Vol.6, No.1, November 2021

ISSN 2189-9592

performance materials under such difficult

methodfor

Material

X.

Processing

conditions.

suppliers had no prior experience with thisSumikei Techno Co. (Sumikei Techno,

new material, and Sumikei Techno washenceforth) was a material manufacturer

neither specialized in assessing materials

facingmainlyin the processing stage, nor presented thedeveloped, manufactured, and sold overright conditions for processing. None of the

300 different types of aluminum extrusionmaterial manufacturers in Japan owned amaterials and processed components oftechnical team that could assess thedifferent qualities. The company often

processing stage, and the cracks thatreceived inquiries on the materials andoccurred

processing methods that suited certain

materials became common. To solve thematerials from both processing suppliers

problem of cracks, Sumikei Techno began

and assemblers, and began receiving more

looking for a company able to assess

complaints about cracks in the material.

processing and develop a method suited forThis was the case for “Material X,” which

Material

had been developed as a new product inmaterial manufacturers could only assess

2006. The cause of cracks was the use of antheinappropriate processing method. Material

suppliers only had rules of thumb to

X was developed to avoid the use of lead,

prevent cracking. Still, the method could

which is essential for the formation of

not be translated into data or transformed

alloys, after introducing a regulation to

intoreduce the use of lead due to environmental

Searching for this partner company wasissues. Tin was employed instead of lead,difficult and took approximately two years.

and a relatively more environment-friendly

At that time, Yamamoto Metal was not

such

a

challenge;

it

upon

X.

materialaprocessing

Research
itself,generallaboratories

while

processing

processing

method.

just

Still, the cutting ability and strength of thecollecting data but also began analyzing

material were inferior compared to those ofdata accumulated through its productiona lead alloy. Therefore, a processing

system at its own technical development

method suited to Material X was required,center, a rare facility for supplier, andbut processing suppliers handled Material

providing consulting services such as

X using a conventional processing method

assessing processing, analyzing processing

and this caused cracks in the material. To

data, and identifying processing conditions

avoid

the

suited to materials. Customers for its

processing method had to be revised toservices were assemblers and companies

accommodate the characteristics of tin,withwhose melting point is lower than that oftransactions. Yamamoto Metal assessed

lead. However, the biggest issue was that

their processing, provided proposals forneither processing suppliers, or Sumikei

solving problems, and proposed more

Techno knew the appropriate processing

efficient processing conditions. Sumikei

formationofcracks,8

problems

theofmaterial like Material X was developed.

themeasuringlead-freewithprocessing

andassembler-led

Journal of Japanese Management Vol.6, No.1, November 2021

ISSN 2189-9592

Techno initiated a business partnershipprocessing conditions. In particular, metal

with Yamamoto Metal in May 2008.

fatigue is another important criterion for

The first step in solving the problem ofprocessing, which was found to be anothercracks was to measure the machinability ofprimary cause of cracks in Material X; it

Material X. Machinability is a criterion of

was also covered by the rules of thumb. Ifmaterial that shows the ease of grinding

the metal is fatigued, its strength declines

duringcutting.

and, by continuing the processing, theMachinability used to be covered by rules

metal eventually fails to bear the stress,of thumbs; however, Material X utilized tin

and cracks arise. Machinability is a crucial

instead of lead, and its machinability was

attribute, but it fails to pursue its original

reduced under the conventional processing

purpose if quality issues such as cracking

method, such that it could no longer be

occur as a result of pursuing a greater

covered by the rules of thumb. Therefore,

machinability. The treatment of metal

Yamamoto

fatigueprocessing

Metal

by

measuredtherequiressimultaneously

machinability of Material X under various

addressing the machinability and theconditions and analyzed the differences incause of cracking.

the degree of machinability compared toconventional materials and conditions that

3. Measurement devices designed as tools

could guarantee a satisfactory outcome. As

Through a business partnership witha result, Yamamoto Metal successfully

Sumikei Techno, Yamamoto Metal began toshowed the cause of the cracking anddesign measurement devices to utilize theproposed suitable processing conditions foraccumulated processing data beyond justMaterial X. In other words, Yamamoto

measuring and assessing, with criteria

Metal defined a new set of conditions forsuch as machinability and metal fatigue.

processing, rather than changing theMaterial X was measured using machines

processing method itself, by focusing on

and tools owned by Yamamoto Metal andmachinability.

assessed by combining these results with

Machinability was covered by the rules

the accumulated processing data. To assessof thumb until now; however, it could now

more various processes and set up suitable

be measured, assessed, and showed inprocessing

numbers. Companies could now desire andamount of processing data regarding therequest a greater production of Material X,

machinability

rather than just reducing its cracking. The

materials and the tools for processing are

improved process needed a setup forrequired. Accordingly, Yamamoto Metal

machinability and other conditions, andneeded to design a measurement device

Yamamoto Metal could provide thesethat

services to those companies. This led

technology for collecting the data on

Yamamotomorevarious objects. In 2007, Yamamoto Metal

measurement criteria to assess a variety ofdesigned its proprietary measurement

Metal

to

work

on

9

was

conditions,
andsuitable

an

metal

to

its

enormous
fatigueofprocessing

Journal of Japanese Management Vol.6, No.1, November 2021

deviceformachinability,

ISSN 2189-9592

proposing more efficient methods in the“MULTI

same package by utilizing their own

INTELLIGENCE®.”processing technology.

At the same time, a measurement
device for metal fatigue (called fatigue
testing

machine),

which

was

equally

4. Initiation of the reconfiguration via

important, was designed. The alternative

newly

to existing testing machines was produced

measurement devices

based on either the rules of thumb orAsadesigned
resultofcriteria
theandcriteria

anddesigned,thetheoretical figures. These machines alsomeasurement

were too expensive to purchase only for

configuration of transactions at Yamamoto

testing metal fatigue for Yamamoto Metal,

Metal began to change. Assembler andand therefore, the company outsourced thismaterial manufacturer which had nevertask without purchasing the machine.

conducted transactions with the company

However, Yamamoto Metal could not

before began to inquire about its business.

obtain and offer an accurate assessment by

Assembler always looked for suppliers thatcombining machinability measures withenabled higher cost reduction; this could beoutsourced measurements of metal fatigue

offeredusing different techniques. This affected

Yamamoto Metal’s devices. In addition, thetheconsulting

partnership between Sumikei Techno andprovided to clients using the processing

Yamamoto Metal could provide material

data and technologies. In 2008, Yamamotodevelopment and guarantee processing

Metal began developing a proprietarywith no cracking problem to assemblers, allfatigue testing machine and designed

in a bundle. GIGA QUAD® could also

“GIGA QUAD®,” a quadruple-type rotating

provide quality assurance regarding thebending fatigue testing machine.

material to assemblers.

extentTheseofprocessing

business

that

used

Since processing could be visualized inaccumulate

numbers only with those devices, it became

processing data along with the processing

a black box and invisible to the client.

technology

The

Therefore, the companies that employedcompany was now able to collect a large

the devices must also use assessing andamount of more accurate data and assess

consulting services and continue using theboth machinability and metal fatigue by

devices and services to accumulate theirusing the devices; therefore, combining

data for more accurate analysis. By

them was not a problem. There were

providing better processing and morecompanies that individually measured

efficient transaction using the devices andmachinability and metal fatigue in theservices, no one would be concerned about

past; however, no company had everthe fact they always needed to use thesucceeded in measuring machinability anddevices

metal fatigue, assessing processing, andcompanies that used Material X needed todesignedoftoYamamoto

devicesthewerespeciallymeasurementbydevices

Metal.

10

andservices.

For

example,Journal of Japanese Management Vol.6, No.1, November 2021

ISSN 2189-9592

ask Yamamoto Metal to set up the

cutting tools and cutting oil optimal forprocessing

processing

conditions,

based

on

the

could

also

be

developed

assessment of their processing. Requests

alongside materials, the materials could be

for this assessment increased as thesold in combination with the processing

number of companies that used Material X

method, tools, and oils, as a complete

was augmented. This was based on a

package. Therefore, all the items at apractice unique to Yamamoto Metal, which

processing site could be replaced with thosesearched for suitable processing methods

included in the processing technology

and tools every time the material changed.

solutions

As a result, Yamamoto Metal could receive

Yamamoto Metal approached the cuttingorders using its own technology; thistool and cutting oil manufacturers forhelped the company to solve its priorpotential joint development.

problemofreplacing

instability
thein

Yamamoto

Metal.

Thus,

byHowever, this joint development did notcontrolmaterialize because of conflicting interests.

ordersassembler-ledofYamamoto Metal aimed to design tools

mechanism of transactions.

with a high cutting ability to accommodate

Since Yamamoto Metal succeeded inmeasurement

the processing technology, while the tool

devices, the measurement and assessment

manufacturer wanted to design tools withof machinability that had been working

a high level of cutting ability and durability.

since

Another reason for the mismatch of

designing

criteria

2007

machinability

andbecameafull-fledged

assessment

interests

testing

was

that

the

and

presented

theprocedure in 2010 and was formalized as ameasurementbusiness in 2015. The measurement anddurability of the cutting tools as numericalassessment of metal fatigue started withdata. A number summarized the use of

R&D activities in 2008 and became atools, but this indicator could become

business in 2014. In 2016, the transactions

ambiguous when the material changed. In

between Yamamoto Metal and UACJ

comparison, the number shown by the(formerly Sumikei

Techno) were stillmeasurement devices was a compatibility

carried out through the criteria andindex between various materials andmeasurement

addition,

cutting tools, which means that these

Yamamoto Metal won contracts to test anumbers represented the performance of

new material developed for an automobile

themanufacturer as commissioned research.

performance of the tools would increase thedevices.

In

tools

number

These measurement and assessment

devices

criteria

forofusers.

Revealingcompetitors,

which

the
was

services are not restricted to testingsomething that tool manufacturers wantedmaterials. From materials and tools totocutting oil, everything associated with

manufacturer also wanted to avoid an

cutting processing could be subject toincrease in competition.

avoid.

Likewise,thecuttingoil

The assessment of cutting tools andmeasurements and assessments. If the11Journal of Japanese Management Vol.6, No.1, November 2021

ISSN 2189-9592

clientprovided stability to the company andcompanies requiring processing conditions

solved problems caused by assembler-led

that matched the production site. However,control mechanism.

as mentioned above, it was difficult to

Calculative

cuttingoil

wasrequestedbydevices

Metal

was

designedbyembodiedthejointly develop cutting tools and cutting

Yamamotooils because the interests of companies did

calculative agency of Yamamoto Metal, as

not match. Therefore, Yamamoto Metal

mentioned above, and made rules of thumbdecided to enhance its business and service

visible in numbers. Rules of thumbbased on the criteria and measurement

supported

devices designed instead of starting newtransactions in many ways for a long time.

joint developments.

However, the invisibility of rules of thumbefficientprocessing

andalso created many problems because there
were many different companies that had(4) Discussion: Strategic reconfiguration
via designed calculative devices

differentThis section discusses what can be

manufacturing. To make the rules oflearned from the case study of Yamamoto

thumb visible to solve problems, companies

Metal and helps see the beginning of theneeded rules and tools such as criteria andreconfiguration

measurementoftransactions

byinterests

in thedevices

toprocessofquantify

establishing newly designed calculative

processing. Criteria and measurement

devices from three perspectives. First, thedevices

calculative agency can be obtained under

propose processing settings that suited theexisting configuration of transactions andmaterial

embodies

calculative

quality of materials and resulted indevices. As mentioned above, Yamamoto

improving the production system. That is,

Metal was struggling with demands ofcriteria are the rules that clarify what

assemblers. However, the company madeshould be visible as the data, while

progressive changes in its production

measurement devices are the tools for

system while responding to the demands ofcollecting data followed by criteria, and aassemblers and developed measurement

larger volume of accurate data can betechniques and data accumulation using

collected by criteria and devices that only

its production system as its calculative

one company could collect previously. The

agency.

companies

newly

Using

its

designed

calculative

agency,enabled

Yamamoto

properties

that

and

Metal

ensuredpurchased

to
the

the

Yamamoto Metal solved not just its own

measurement devices eventually collected

problems, but also those of other companies

the data by using them. Yamamoto Metal

which were a result of a similar assembler-

just needed to collect the data from those

led control mechanism as Yamamoto Metal.

companies for free through providing their

Solving problems had successfully satisfied

assessment and consulting services.

assemblers’demands.

The

Second,calculative

thedesigned

calculative

devices triggered the reconfiguration of theagency that Yamamoto Metal archived

12

Journal of Japanese Management Vol.6, No.1, November 2021

ISSN 2189-9592

existing transactions by making the latter

manufacturing

align with them. Material manufacturer

INTELLIGENCE® did not sell much sinceacquired the ability to sell directly instead

the formalization of the business in 2015,

of operating through wholesaler and began

but the main target of this device wasworkingondeveloping

higher-quality

Yamamotomaterials

byusing thecriteria

andespecially the research laboratories ofdevices.

distribution

assemblers and material manufacturers.

measurementAindustry.

Metalclient

MULTI

companies,

andResearch laboratories conducted manymeasurement devices to assess equipment

measurements and analyses needed inperformance and display numeric results

product development and manufacturing,on their catalogs. Price was the only metricand MULTI INTELLIGENCE® connected

used to choose the equipment for client

these laboratories and Yamamoto Metal.

company

usedcompanies;

thehowever,criteriatheFor example, several measurements

distribution

company could now provide equipment

wereperformance as another metric for the

manufacturer attempted to use a new

selection of equipment. Additionally, thematerial or a new processing technology for

distribution company had worked on aa new product. 4 The company performed

database of equipment performance andassessment tests before establishing theplanned to demonstrate this database totechnology for manufacturing the product.

clienttool

To do so, the research laboratory of the

manufacturers began collecting processing

manufacturer would ask Yamamoto Metal

data by attaching measurement devices tofor help in measuring, assessing, andtheir machine tools. This allowed them toaccumulating data, carried out usingdevelop machine tools to meet more client

MULTI INTELLIGENCE®; thus, it wascompanies’ needs by using the data

employed to measure and assess thecollected. In this way, the criteria andmachinability in the research laboratory ofmeasurement

thecompanies.

Machinedevicesdesignedbyneededwhen

automobileanautomobile

manufacturer.

The

Yamamoto Metal were gradually arranged

research laboratory collected the datain the existing configuration and triggered

obtained by MULTI INTELLIGENCE®

reconfiguration of transactions.

and purchased the data (under the same

Third, the designed calculative devices

conditions)fromYamamoto

Metal,

showed a possibility of becoming pivotal inallowing it to reduce the time required for

the

and

R&D as well as the time to respond totheproblems. New materials and processing

The case of an automobile manufacturer

phase and the accuracy of equipment

was presented as an example of how an

can also be improved by using MULTI

assembler’s

INTELLIGENCE®,

futurecontinuing
4

controlmechanismreconfiguration

researchoflaboratory

equipment manufacturers.

functions, but the same applies to othercompanies who aim to shorten the R&D

like

13

medicalJournal of Japanese Management Vol.6, No.1, November 2021

ISSN 2189-9592

services.

technologies, including hybrids, electricvehicles, and fueled vehicles, are often

As more and more companies use theapplied in unknown fields such as next-

measurement devices, the transactions

generation

fields,will get reconfigured around Yamamoto

accumulated data are scarce and valuable.

Metal. Being a part of the development

Therefore, there is a high chance thatstage of assemblers and the academic stage

Yamamoto

MULTI

may have more effect of the reconfiguration.

INTELLIGENCE® would collaborate for

As the components in the rules of thumb

new products, and after that, otherhave become measurable by the criteria

companies would have to purchase and use

and measurement devices, the need for

MULTI INTELLIGENCE® with data fromcomposite measurements and assessment

Yamamoto Metal if they wanted to use

isthose materials or technology.

conferences, such thatthe difference

betweenandvehicles.

In

Metal

these

and

MULTI INTELLIGENCE®

did not

being

highlighted

insimulations

academic
actualsimply measure machinability; it played ameasurements has become evident. In

significant role in creating a new blueprint

other words, the criteria and measurement

for identifying the interests of otherdevices visualized processing as actual

companies

suchvalues, which, in turn, formed the basis forinterests. To be able to identify varied

reconfiguring transactions among diverse

interests, Yamamoto Metal needed to findstakeholders. At the same time, it also

and solve more companies’ problems whichmeant that the criteria and measurement

would

devicesandbecomereconstructing

possiblethroughthethat

Yamamoto

Metal

providedhadcollection of a variety of accurate data.

strategically designed

actualMULTI INTELLIGENCE® managed to bemeasurements in a manner that aligned

sold as a result of other companies’ needs

with the processing carried on by theor interests to help Yamamoto Metal incompany.

deciding the direction of upgrading the

As shown in the case of Yamamoto

device. More the problems that MULTI

Metal, the design and arrangement of new

INTELLIGENCE® could solve, more thecalculative

number of companies would use it. Thenconfiguration is critical to reconfigure

those companies would provide data totransactions

Yamamoto Metal. As such, Yamamoto

calculative devices become essential for

Metal continues to design and enhance thecontrolling transactions, replacing or atmeasurement devices to understand otherleast changing the assembler-led control

companies’ interests by receiving orders ofmechanism, companies need to include

processing,thecalculative devices in their transactions. As

measurement devices are used in thediscussed, the criteria and measurement

product development stage, and providing

devices designed by Yamamoto Metal

measurement and assessment solution

influenced

ensuringthat14

devicesinstrategically.

the

the

existing

Once

reconfigurations

new

of

Journal of Japanese Management Vol.6, No.1, November 2021

transactions

among

varioustypes

devicesof

ISSN 2189-9592

asacontrol

companies. Developing these devices andtransactions

insteadoffering services using them enabled acontrol mechanisms.

supplier like Yamamoto Metal to take

Furthermore,mechanism
of

the

for

assembler-led
criteria

andadvantage of the transactions that used tomeasurement devices showed different

trigger a complete reconfiguration ofpatterns of reconfiguration. These criteriatransactions controlled with the rules andbecame the point of reference for corporate

tools designed by assemblers. Therefore,

activities. For example, Yamamoto Metal’s

Yamamoto

the

total

measurement and assessment solution

measurement

andservice formulated new criteria based on

assessment of the entire manufacturing

the processing data. As explained before,

process by including the designed criteria

Yamamoto Metal defined a criterion thatand measurement devices in the existing

served as a point of reference for thetransactions.

purchase of tools on behalf of distribution

packageMetal
forconsidersthecompany that sought to differentiate bymeans other than price. In addition,(5) Concluding remarks

measurement devices not only performed

This study described the potential
bymeasurements but also collected data. For

arranging calculative devices designed by aexample, MULTI INTELLIGENCE® was

supplier into existing transactions. In thedesigned to be attached to a machine tool,case of Yamamoto Metal, the criteria andas explained before. In this way, companies

measurement devices were designed as

could easily measure processing by simply

calculative devices while considering otherattaching the device to their machine tools,

companies’ problems or interests. The

while Yamamoto Metal could collect a large

calculative devices were designed via aamount of data to use them for its business.

calculative agency, measuring processing

Even a typical secondary supplier can

and accumulating data, while solving

have a chance to analyze other companies’

Yamamoto Metal’s own problems andinterest and design calculative devices that

responding to the demands of assemblers.

can become a possible control mechanism

This allowed the company to show othersof transactions for the whole industry. It

how calculative devices can make their

does not require advanced technology, but

processing more efficient and solve theira calculative agency archived in the

problems. Ensuring that processing andexisting

transactions

calculative devices in order to process otherreconfiguration

of

are

transactions

efficient

is

more

configurations

toimportant than following the assembler-companies’ interests and

led

was

depend on its calculative devices. However,considered as the ideal method in the past.

this study is limited to the case ofAsof

Yamamoto Metal and its client companies

transactions began by arranging theseduring a certain time period. It is necessarycontrolamechanism,

result,which

reconfigurations

15

make

designthemJournal of Japanese Management Vol.6, No.1, November 2021

Design. Journal of the Center for

to study various calculative agencies andtheircalculative

devices

ISSN 2189-9592

Information Studies, 5, pp. 3-10.

andreconfigurations to analyze the pattern or

Callon,

M.

and

F.

Muniesa(2005).

category of calculative devices to arrive at

Peripheral Vision: Economic Markets

more specific conclusions. Furthermore,as

Calculative

Collective

Devices.

continuing the observations will provide an

Organization Studies, 26 (8), pp. 1229-

overall perspective on reconfiguration and1250.

its effect over the whole industry. However,asdiscussed,

theinvestigating
mechanisms

framework

Clegg, S. R. (2005). Puritans, Visionaries

and Survivors. Organization Studies,fortransaction-control
from

the

perspective

26 (4), pp. 527-545.

ofClegg, S. and M. Lounsbury (2009). Weber:calculative devices has yielded enough

Sintering the Iron Cage: Translation,evidence, making it possible to apply the

Domination, and Rationality. In Adler,

P. S. (Ed.) Sociology and Organization

study’s results to other transactions orStudies, Oxford: Oxford University

industry reconfigurations.

Press, pp. 118-145.
Fligstein, N. and L. Dauter (2007). The

Acknowledgements

Sociology of Markets. Annual Review

I thank Mr. Yamamoto, the president ofof Sociology, 33 (1), pp. 105-128.

Yamamoto Metal, who provided all thedata, answered all our questions during

Fujimoto,T.

(2001).

The

Japaneseinterviews, and introduced me to his client

Automobile Parts Supplier System:companies. I also thank my colleagues who

The Triplet of Effective Inter-Firm

Routines. International Journal ofprovided insight and expertise that greatly

Automotive
Technology
Management, 1(1), pp. 1-34.

assisted the research, although they may
not

agree

with

all

the

interpretations/conclusions of this study.

andKanno, M. (1971). M. Weber Niokeru
Kindaisyakai no ‘Gourisei’ Nituite:‘Keishiki Gourisei’ to ‘Zissitsu Gourisei’Fundingno Monndai. Shakaigaku Hyouron, 21This study was conducted with funding
from JSPS Kakenhi (Grant Numbers(4), pp. 2-16.

26780234 and 18K12872).

Lounsbury, M. and E. J. Carberry (2005).
From King to Court Jester? Weber’s
Fall from Grace in Organizational

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