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Network Interactions And Mutual Dependence: A Test In The Car Industry

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Listed:
  • Bart Nooteboom
  • Gjalt De Jong
  • Robert Vossen
  • Susan Helper
  • Mari Sako

Abstract

By engaging in specific investments a firm may develop a unique competence value for its partner, which makes the partners mutually dependent. This may neutralize any hold-up risk of an opportunistic partner that is tempted to exploit the dependence and appropriate a greater share of the value added in the relation. The purpose of this paper is to investigate such mechanisms of mutual dependence. The analysis builds on previous theoretical and empirical research by the authors. It is based on an integration of transaction cost economics with the resource (competence, capabilities) view and a social exchange view, from a dynamic perspective. The paper asks the following: How do competencies develop in interaction between firms? The social exchange view brings in trust as an important dimension of governance. The research question asks how risks of mutual dependence between firms may be mitigated without either hierarchical or legal control. Five hypotheses concerning such mechanisms of mutual dependence are tested on data from the car industry.

Suggested Citation

  • Bart Nooteboom & Gjalt De Jong & Robert Vossen & Susan Helper & Mari Sako, 2000. "Network Interactions And Mutual Dependence: A Test In The Car Industry," Industry and Innovation, Taylor & Francis Journals, vol. 7(1), pages 117-144.
    • Handle: RePEc:taf:indinn:v:7:y:2000:i:1:p:117-144
    DOI: 10.1080/713670249
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    Citations

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    Cited by:

    1. Romain Gandia & Elodie Gardet, 2019. "Sources of Dependence and Strategies to Innovate: Evidence from Video Game SMEs," Post-Print hal-01696250, HAL.
    2. Sumit Mitra, 2007. "India as the Global Outsourcing Destination," Global Business Review, International Management Institute, vol. 8(1), pages 69-86, February.
    3. Evelyn Anderson, 2003. "The Enigma of Toyota's Competitive Advantage: Is Denso the Missing Link in the Academic Literature?," Asia Pacific Economic Papers 339, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    4. Nic Lees & Peter Nuthall, 2015. "Case study analysis on supplier commitment to added value agri-food supply chains in New Zealand," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 3(1), pages 1-16, December.
    5. Romain Gandia & Elodie Gardet, 2012. "Sources de dépendance et stratégies pour innover. Une application aux studios de jeu vidéo français," Post-Print hal-01293352, HAL.
    6. Franz Tödtling & Markus Grillitsch, 2014. "Types of Innovation, Competencies of Firms, and External Knowledge Sourcing—Findings from Selected Sectors and Regions of Europe," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 5(2), pages 330-356, June.

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