Alternative Component Sourcing Strategies within the Manufacturer-Supplier Network:Benefits of Quasi-Market Strategy in the Japanese Automobile Industry

Kentaro Nobeoka
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Kentaro Nobeoka: Kobe University

Kobe Economic & Business Review, 1997, vol. 41, 69-99

Abstract: This study examines the component sourcing strategy of six Japanese automobile manufacturers. One of the major findings is that firms with a low sourcing concentration and a high supplier sharing, which are the characteristics of quasi-market strategy, tend to perform better than the other firms. The Japanese cooperative inter-firm relationship has been considered to be beneficial to both suppliers and assemblers. It is commonly considered that a relatively exclusive "keiretsu" system facilitates these close inter-firm ties. However, the results in this study have implied that a few leading Japanese automobile manufacturers may have management capabilities in benefiting from both a relatively broad supplier base and cooperative relationship with individual suppliers.

Keywords: Supplier relationship; Supplier network; Japanese automobile firms; Quasi-market strategy (search for similar items in EconPapers)
JEL-codes: L14 L62 (search for similar items in EconPapers)
Date: 1997
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