Specialized supplier networks as a source of competitive advantage: evidence from the auto industry

Article Abstract:

The relationship between inter-firm asset specificity and performance in the automobile industry is examined. In particular, this study investigates the extent to which differences in supplier-automaker asset specialization may account for differences in performance between Japanese and American automobile manufacturers. Results demonstrate a positive relationship between supplier-automaker specialization and performance. More specifically, findings indicate a positive relationship between inter-firm human asset co-specialization and both quality and new model cycle time. In addition, the study indicates that site specialization is positively related to lower inventory costs. These imply that a tightly integrated production network with proximity and a high level of human co-specialization in the automobile industry will perform better than a loosely integrated production network with low levels of inter-firm specialization.

Performance

---

Recreating and extending Japanese automobile buyer-supplier links in North America

Article Abstract:

A study was conducted to identify the factors that may influence assemblers with an international presence to create links in the foreign location with suppliers in the assemblers' native country. The buyer-supplier links of Japanese-owned car assemblers and first-tier parts manufacturers operating in Japan and North America from 1989 to 1990 were examined. Findings revealed the economic and organizational factors that determine whether or not an existing buyer-supplier link will be recreated in a new setting and whether or not firms not involved in a buyer-supplier relationship at home will enter into an extension link in the new area. These factors include the existence of a long-term buyer-supplier relationship, buyer and supplier entry timing to the new location, the joint venture status of the buyer, the size of the supplier, and the volume of the sales base of the supplier in its home market.

Japan, Corporations, Corporations, Japanese

---

The 'close but adversarial' model of supplier relations in the U.S. auto industry

Article Abstract:

A 'close but adversarial' model of industrial supplier relations describes a situation where formal commitment between the parties is weak although uncertainty is minimized through an improved information flow and a longer timeframe. Therefore, some forms of cooperation can be beneficial even in noncooperative relations where vulnerability is present. A study tested this model, where noncooperative behavior is incorporated within a context of formal commitment, in the American automobile manufacturing sector. Findings support the model, which indicates that adversarial behavior exists even in cooperative buyer-supplier relationships. Moreover, results found high levels of trust and informal commitment in a small but significant number of these relationships.

Supplies Purchasing, Analysis, Purchasing, Business-to-business market, Business to business market, Interorganizational relations

Similar abstracts:

• Abstracts: "Real-izing" the benefits of new technologies as a source of audit evidence: an interpretive field study. Proper compromises: the management control dilemma in public accounting and its impact on auditor behavior
• Abstracts: Stock market reaction to German reunification. Stock price reaction to daily limit moves: evidence from the Taiwan Stock Exchange
• Abstracts: Windfalls all round for carpet baggers. Sting in the bonus tail. Savings rates: income threat
• Abstracts: Why there's little cheer in the Beer. The message from the gilt market. UK markets: a harder year
• Abstracts: The wilder shores of equity. Fleming Investment Trusts: trust faces roll-over risk. Mountcashel: spotting a bargain

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.