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

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  • Kentaro Nobeoka

    (Kobe University)

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.

Suggested Citation

  • Kentaro Nobeoka, 1997. "Alternative Component Sourcing Strategies within the Manufacturer-Supplier Network:Benefits of Quasi-Market Strategy in the Japanese Automobile Industry," Kobe Economic & Business Review, Research Institute for Economics & Business Administration, Kobe University, vol. 41, pages 69-99, February.
    • Handle: RePEc:kob:review:feb1997::v:41:p:69-99
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    More about this item

    Keywords

    Supplier relationship; Supplier network; Japanese automobile firms; Quasi-market strategy;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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