Bridging inter‐ and intra‐firm boundaries: management of supplier involvement in automobile product development

Akira Takeishi

Strategic Management Journal, 2001, vol. 22, issue 5, 403-433

Abstract: Outsourcing has become an important strategy for many firms. Yet, firms need to compete with their competitors who also outsource and may share the same suppliers. This article explores how a firm could outperform others in managing the division of labor with a supplier in product development. Drawing on the empirical data collected from the Japanese auto industry, this paper shows that an automaker needs capabilities to coordinate various activities both externally with a supplier and internally within its own organization, in order to gain better component development performance. Overall, the results imply that outsourcing does not work effectively without extensive internal effort. Copyright © 2001 John Wiley & Sons, Ltd.

Date: 2001
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