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This study examines communication in a system of inter-firm networks and the dynamics of knowledge transfer within such networks. The guest engineer system that was widely adopted in the Japanese automotive industry following the Second World War is the focus of this study. Significant positive effects of common knowledge shared by the firms involved, a constructive role of individuals as conveyors of information, and increased productivity and human capital gains are found to result from inter-firm network communication in the context of the Japanese automotive industry.

Communication in Inter-firm Network: Guest Engineers and Knowledge Transfer in the Japanese Automobile Industry after the Second World War