Porter（ 1990） proposes the concept of“ cluster”. The purpose of this paper is to examine how clusters are positioned between the market and the hierarchies, as Porter（ 1998） presents the challenge. At the same time, there are intermediate organizations such as a series between the market and the hierarchy, so we will also discuss them. As for the hierarchical organization, we conducted a case study of Yokoyama Seimou, and examined its characteristics. The significance of this paper is the following two points.（ 1）Hierarchical organization, competition by visible hands, division of process in Ota Ward, and cluster can simultaneously achieve productivity and innovation. （2） Regarding Yokoyama Seimou’s case study, the company is located in an area that can hardly be called a cluster and is a hierarchical organization that vertically integrates processes, the company has succeeded in meaningful joint development with other companies. As an implication for the region, it is also important to view the whole of Japan as a network, regardless of the cluster.
The structure of this paper will be discussed in the order of Porter’s theory of clusters, existing research on intermediate organizations, Yokoyama’s case study, discussion, and conclusion.