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Network Structure and Business Survival: The Case of U.S. Automobile Component Suppliers

Author

Listed:
  • Swaminathan, Anand

    (U of California, Davis)

  • Hoetker, Glenn

    (U of Illinois at Urbana-Champaign)

  • Mitchell, Will

    (Duke U)

Abstract

We examine how three aspects of network structure affect supplier performance, focusing on relationship duration, supplier autonomy, and customer status. We examine their impact in different competitive contexts by considering differences in the modular and architectural technological characteristics of the components. Using data on all U.S. automotive carburetor and clutch manufacturers from 1918 to 1942, we find that suppliers of architectural goods (carburetors) benefit from long-term relationships, high status customers, and current autonomy. By contrast, only autonomy affects suppliers of modular goods (clutches). This comparison speaks to the contingent nature of the influence of network structure, with the benefits and constraints deriving largely from the nature of the inter-firm routines firms create to coordinate relationships. Relationships requiring extensive sets of inter-firm routines lead to greater benefits and constraints of network structure, while network structure has more restricted influence on relationships requiring less intensive inter-firm routines.

Suggested Citation

  • Swaminathan, Anand & Hoetker, Glenn & Mitchell, Will, 2002. "Network Structure and Business Survival: The Case of U.S. Automobile Component Suppliers," Working Papers 02-0105, University of Illinois at Urbana-Champaign, College of Business.
    • Handle: RePEc:ecl:illbus:02-0105
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    File URL: http://www.business.illinois.edu/Working_Papers/papers/02-0105.pdf
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    References listed on IDEAS

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    Cited by:

    1. Pedro Campos & Pavel Brazdil & Isabel Mota, 2013. "Comparing Strategies of Collaborative Networks for R&D: An Agent-Based Study," Computational Economics, Springer;Society for Computational Economics, vol. 42(1), pages 1-22, June.
    2. Stoehr, Niklas & Braesemann, Fabian & Zhou, Shi, 2019. "Mining the Automotive Industry: A Network Analysis of Corporate Positioning and Technological Trends," SocArXiv bu5zs, Center for Open Science.
    3. Sergio G. Lazzarini & Danny P. Claro & Luiz F. Mesquita, 2008. "Buyer–Supplier and Supplier–Supplier Alliances: Do They Reinforce or Undermine One Another?," Journal of Management Studies, Wiley Blackwell, vol. 45(3), pages 561-584, May.
    4. Lazzarini, Sergio G. & Mesquita, Luiz F. & Claro, Danny P., 2007. "Buyer-Supplier and Supplier-Supplier Alliances: Do They Reinforce or Undermine One Another?," Insper Working Papers wpe_84, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.

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