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Buyer-supplier partnerships during product design and development in the global automotive sector: Who invests, in what and when?

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  • Lettice, Fiona
  • Wyatt, Clare
  • Evans, Stephen

Abstract

This paper explores the concept of partnerships between buyers and suppliers in the global automotive sector during product design and development. Partnerships are often the goal in a shift away from adversarial arms-length relationships. The objective of this research is to provide empirical evidence to explain the levels of mutual investment expected and achieved in partnerships from both buyer and supplier perspectives. During this research, 25 employees from 12 global supplier organisations who were in partnership with a specific vehicle manufacturer (VM) were interviewed. Twelve employees from this VM were also interviewed. The research showed the differences between partnerships and non-partnerships and the disparities in the expectations of investment from each partner. For suppliers and buyers to get the most out of partnerships, clear expectations and investments needed over time should be understood and agreed early in the relationship.

Suggested Citation

  • Lettice, Fiona & Wyatt, Clare & Evans, Stephen, 2010. "Buyer-supplier partnerships during product design and development in the global automotive sector: Who invests, in what and when?," International Journal of Production Economics, Elsevier, vol. 127(2), pages 309-319, October.
    • Handle: RePEc:eee:proeco:v:127:y:2010:i:2:p:309-319
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    References listed on IDEAS

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    Cited by:

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    3. Alda Yoshi Uemura Reche & Osiris Canciglieri Junior & Anderson Luis Szejka & Marcelo Rudek, 2022. "Proposal for a Preliminary Model of Integrated Product Development Process Oriented by Green Supply Chain Management," Sustainability, MDPI, vol. 14(4), pages 1-27, February.
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    6. Virendra Balon & Anil K. Sharma & Mukesh K. Barua, 2016. "Assessment of Barriers in Green Supply Chain Management Using ISM: A Case Study of the Automobile Industry in India," Global Business Review, International Management Institute, vol. 17(1), pages 116-135, February.
    7. Subramanian, Nachiappan & Gunasekaran, Angappa & Abdulrahman, Muhammad D. & Qiao, Crystal, 2019. "Out-in, in-out buyer quality innovation pathways for new product outcome: Empirical evidence from the Chinese consumer goods industry," International Journal of Production Economics, Elsevier, vol. 207(C), pages 183-194.
    8. Young K. Ro & Hung-Chung Su & Yi-Su Chen, 2016. "A Tale of Two Perspectives on an Impending Supply Disruption," Journal of Supply Chain Management, Institute for Supply Management, vol. 52(1), pages 3-20, January.
    9. Marcus A. Bellamy & Rahul C. Basole, 2013. "Network analysis of supply chain systems: A systematic review and future research," Systems Engineering, John Wiley & Sons, vol. 16(2), pages 235-249, June.
    10. Kim, Yusoon & Choi, Thomas Y., 2021. "Supplier relationship strategies and outcome dualities: An empirical study of embeddedness perspective," International Journal of Production Economics, Elsevier, vol. 232(C).
    11. Sachin Modgil & Sanjay Sharma, 2017. "Information Systems, Supply Chain Management and Operational Performance: Tri-linkage—An Exploratory Study on Pharmaceutical Industry of India," Global Business Review, International Management Institute, vol. 18(3), pages 652-677, June.
    12. Nina Shin & Sun Hyun Park & Sangwook Park, 2019. "Partnership-Based Supply Chain Collaboration: Impact on Commitment, Innovation, and Firm Performance," Sustainability, MDPI, vol. 11(2), pages 1-19, January.
    13. Zhang, Chun & Henke, John W. & Viswanathan, Sridhar, 2015. "Reciprocity between buyer cost sharing and supplier technology sharing," International Journal of Production Economics, Elsevier, vol. 163(C), pages 61-70.
    14. Silvio M. Brondoni, 2012. "Ouverture de 'Innovation Management in Global Markets - 2'," Symphonya. Emerging Issues in Management, University of Milano-Bicocca, issue 2 Innovat, pages 1-12.
    15. Chen, Yi-Su & Su, Hung-Chung & Ro, Young K., 2017. "The co-evolution of supplier relationship quality and product quality in the U.S. auto industry: A cultural perspective," International Journal of Production Economics, Elsevier, vol. 184(C), pages 245-255.
    16. Saghiri, Soroosh S. & Barnes, Stuart J., 2016. "Supplier flexibility and postponement implementation: An empirical analysis," International Journal of Production Economics, Elsevier, vol. 173(C), pages 170-183.
    17. Pernot, Eli & Roodhooft, Filip, 2014. "The impact of inter-organizational management control systems on performance: A retrospective case study of an automotive supplier relationship," International Journal of Production Economics, Elsevier, vol. 158(C), pages 156-170.
    18. Faridzah Jamaluddin & Nizaroyani Saibani, 2021. "Systematic Literature Review of Supply Chain Relationship Approaches amongst Business-to-Business Partners," Sustainability, MDPI, vol. 13(21), pages 1-25, October.
    19. Qamar, A. & Gardner, E.C. & Buckley, T. & Zhao, K., 2021. "Home-owned versus foreign-owned firms in the UK automotive industry: Exploring the microfoundations of ambidextrous production and supply chain positioning," International Business Review, Elsevier, vol. 30(1).

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