Inter-firm networking strategy is the process of arranging a series of value activity processes based on the principles of division of labor and specialization to maximize the value of final goods, and efficiently integrating these activities. This study aimed to identify the sources of global competitiveness of Japanese firms and to suggest new directions for the development of Korean small and medium-sized enterprises (SMEs) by examining the characteristics of inter-firm networking strategies of Korean and Japanese SMEs. The comparison results, centered on the automobile industry, showed that Japanese SMEs had a stronger awareness of inter-firm networking compared to Korean SMEs, and as a result, organic mutual interactions among firms were being achieved.