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The Causality of Supply Relationships

Author

Listed:
  • de Jong, G.
  • Nooteboom, B.

Abstract

This study examines the 'logic' or underlying causality of supply relationships. It develops and tests hypotheses, in a LISREL model, on detailed data for 553, 450 and 226 supply relationships in the US, Japanese and European automobile industries. The differences found between the three regions seem small, given the received view that there are fundamental differences between 'Japanese' and 'Western' contracting. However, the differences that remain suggest that in the US perhaps the 'Japanese system' has been surpassed, in a 'third way' that combines the advantages of sufficiently durable relations with the advantages of an open system with great variety.

Suggested Citation

  • de Jong, G. & Nooteboom, B., 2001. "The Causality of Supply Relationships," ERIM Report Series Research in Management ERS-2001-73-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
  • Handle: RePEc:ems:eureri:9
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    File URL: https://repub.eur.nl/pub/9/erimrs20020104123434.pdf
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    References listed on IDEAS

    as
    1. Kirk Monteverde & David J. Teece, 1982. "Supplier Switching Costs and Vertical Integration in the Automobile Industry," Bell Journal of Economics, The RAND Corporation, vol. 13(1), pages 206-213, Spring.
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    3. Williamson, Oliver E, 1993. "Calculativeness, Trust, and Economic Organization," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 453-486, April.
    4. Erin Anderson & Barton Weitz, 1989. "Determinants of Continuity in Conventional Industrial Channel Dyads," Marketing Science, INFORMS, vol. 8(4), pages 310-323.
    5. Nooteboom, B. & Berger, H. & Noorderhaven, N.G., 1997. "Effects of trust and governance on relational risk," Other publications TiSEM 8e83932e-064c-40e8-afe7-4, Tilburg University, School of Economics and Management.
    6. Niels Noorderhaven & Bart Nooteboom & Hans Berger, 1998. "Determinants of Perceived Interfirm Dependence in Industrial Supplier Relations," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 2(3), pages 213-232, September.
    7. Erin Anderson, 1985. "The Salesperson as Outside Agent or Employee: A Transaction Cost Analysis," Marketing Science, INFORMS, vol. 4(3), pages 234-254.
    8. Joskow, Paul L, 1987. "Contract Duration and Relationship-Specific Investments: Empirical Evidence from Coal Markets," American Economic Review, American Economic Association, vol. 77(1), pages 168-185, March.
    9. S.A. Lippman & R.P. Rumelt, 1982. "Uncertain Imitability: An Analysis of Interfirm Differences in Efficiency under Competition," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 418-438, Autumn.
    10. John, George & Weitz, Barton A, 1988. "Forward Integration into Distribution: An Empirical Test of Transaction Cost Analysis," Journal of Law, Economics, and Organization, Oxford University Press, vol. 4(2), pages 337-355, Fall.
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    More about this item

    Keywords

    Automobile industries; Learning theory; Social exchange theory; Supply relationships; commitment;

    JEL classification:

    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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