Transaction structure in Japanese small business sector

An attempt has been made to examine some aspects of transaction structure o f the small business sector in Japanese manufacturing. It has been found th at there are some interesting findings in the industrial organization of th e sector (1) In the transactions of intermediate goods with manufacturing, small businesses have more frequent transactions with other small businesse s than with large firms. On the other hand, large firms have more transacti ons with each other than with small businesses; (2) The transactions betwee n SMEs and large firms, and between SMEs themselves vary from industry to i ndustry, depending on production/demand structure of an industry and produc t structure of its SMEs sector; (3) In engineering, such as electrical mach inery and transport equipment, the intra-industry transactions from small b usinesses to large firms are great, suggesting a larger extent of subcontra cting relationships. Also, textiles, clothing, and printing and publishing also have higher subcontracting transactions. The relationships are differe nt between the two groups.