The role of large manufactures and local suppliers in industrial growth and regional diversification: the automobile industry in Kyushu, Japan

Based on the corporate histories of local companies in Kyushu, Japan, this study investigates regional diversification from a microperspective. In Japan, subcontracting companies often grow to become first-tier suppliers to major firms and eventually evolve into multinational corporations. Subsequently, related industries emerge within the region, leading to related diversification. Drawing on the corporate histories of Matsumoto Kogyo and Hoyo Seiko, two local Kyushu firms, this study traces how local companies can evolve into multinational corporations. By determining commonalities between companies, we can delineate related diversification as a corporate development model.