In this paper the author examines how Korea's export-oriented economy has laid its new foundation for global competitiveness by deepening interfirm linkages. Korea's interfirm linkages refer mainly to the relationship between large and small firms. Recent corporate restructuring in the large and small firm sectors has caused denser and highly dynamic intercorporate networks to arise. The author argues that the globalizing of economy in Korea is encouraged by efficacious global—local transactions via large—small firm networks, a matter ignored by most analysts. Major foci are on analyzing the forms, structures, governing mechanisms, and function of large—small firm networks.
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