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Interpretations of the structure and dynamics of Japanese small ï¬rms and industrial districts have diverged widely in recent years. This article focuses on the relatively neglected area of microï¬rms in traditional consumer goods industries (jiba sangyō). A case study of the Arita ceramic tableware industry makes possible a detailed historical examination of the social, technical, and personal dilemmas of such a local cluster. It accounts for the success and recent problems of the industry and also explores issues such as the local roots of craft and innovation, sociocultural traditions of trust and cooperation, and the crucial relations between producers and distribution networks.
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