"Interaction between Component Archtectures and Transaction Types \A Case of an Automobile Parts Manufacturer \" (in Japanese)

Takahiro Fujimoto and Ge Dongsheng
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Takahiro Fujimoto: Faculty of Economics, University of Tokyo
Ge Dongsheng: Graduate School of Economics, University of Tokyo

No CIRJE-J-34, CIRJE J-Series from CIRJE, Faculty of Economics, University of Tokyo

Abstract: In this paper, we examine the diversity of transaction patterns observed between a single pair of one automaker and one auto parts supplier in Japan. Assumed reasonably that the factor of relational skill is under control in such dyadic transaction relationship, other factors that may influence the choices of transaction patterns are explored from the perspective of product architecture. By focusing on the matching of functional and structural hierarchies, which is considered to be the core of the product architecture concept, we firstly formalize the architectural attributes of auto parts into three measurable sub concepts: (1) functional modularity, (2) structural modularity, which reflect the degree of interdependence between auto parts; and (3) modularity between auto parts and the overall auto design. Then based on the data of 33 items of auto parts collected from one Japanese supplier, hypotheses on the relationship between modularity of auto parts and three transaction patterns (the drawing-supplied parts, the drawing-approved parts and the drawing-entrusted parts) are tested. The empirical results show that only functional modularity of auto parts has significant influence on transactions of the drawing-supplied parts and the drawing-approved parts, while transactions of the drawing-entrusted parts cannot be explained within the architectural framework consistently. We believe that the reflected concern of functional aspect during the decision making of outsourcing auto parts design is important for understanding the competence of supplier management in Japanese auto industry. Especially when so-called modularization has been adopted as a strategy in the global auto industry, the function-structure paradigm may offer a clue for comparative research in the future.

Pages: 28 pages
Date: 2000-10
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Persistent link: https://EconPapers.repec.org/RePEc:tky:jseres:2000cj34

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