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Vertical sub-contracting relationships strategy, the Airbus First-tier suppliers\' coordination


This paper analyzes the transformations of industrial vertical relationships, and more particularly the duality of the coordination modes within new industrial architectures. The paper aims to characterize relationship between the architect and the first-tier suppliers according to the strategic degree of their competence. Two models of coordination arm\'s length and systems integration coexist within the same industrial architecture. The recourse to one or the other varies according to the policy of purchase and the strategic degree of the sub-contracted subsystems. Thus we will analyze the system of subcontracting of Airbus by focusing to the importance of the purchasing policy. The argumentation articulates in two parts. The first one considers the vertical subcontracting relationships in the framework of complex productions, by insisting on organizational aspects. The second one analyses the transformation of the \"Airbus\" productive system by focusing on purchasing process and the emergence of new First-tier supplier’s coordination modes.

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Paper provided by Groupement de Recherches Economiques et Sociales in its series Cahiers du GRES (2002-2009) with number 2007-02.

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Date of creation: 2007
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Handle: RePEc:grs:wpegrs:2007-02
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  1. Takeishi, Akira & Fujimoto, Takahiro, 2001. "Modularization in the Auto Industry: Interlinked Multiple Hierarchies of Product, Production, and Supplier Systems," IIR Working Paper 01-02, Institute of Innovation Research, Hitotsubashi University.
  2. Giovanni Dosi & Mike Hobday & Luigi Marengo & Andrea Prencipe, 2002. "The Economics Of System Integration: Toward An Evolutionary Interpretation," LEM Papers Series 2002/16, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  3. Vincent FRIGANT (E3i-IFReDE-GRES), 2004. "Modularity: the foundations of an architect firm? (In French)," Cahiers du GRES (2002-2009) 2004-02, Groupement de Recherches Economiques et Sociales.
  4. Vincent Frigant, 2005. "Vanishing hand versus Systems integrators - Une revue de la littérature sur l'impact organisationnel de la modularité," Revue d'Économie Industrielle, Programme National Persée, vol. 109(1), pages 29-52.
  5. Ulrich, Karl, 1995. "The role of product architecture in the manufacturing firm," Research Policy, Elsevier, vol. 24(3), pages 419-440, May.
  6. Philippe Moati, 2001. "Organiser les marchés dans une économie fondée sur la connaissance : le rôle clé des « intégrateurs »," Revue d'Économie Industrielle, Programme National Persée, vol. 97(1), pages 123-138.
  7. Nicolai J. Foss, 1996. "Capabilities and the Theory of the Firm," DRUID Working Papers 96-8, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  8. Vincent Frigant & Damien Talbot, 2004. "Convergence et diversité du passage à la production modulaire dans l'aéronautique et l'automobile en Europe," Post-Print hal-00722226, HAL.
  9. Richard N. Langlois, 2002. "The Vanishing Hand: the Changing Dynamics of Industrial Capitalism," Working papers 2002-21, University of Connecticut, Department of Economics.
  10. Loasby, Brian J., 1998. "The organisation of capabilities," Journal of Economic Behavior & Organization, Elsevier, vol. 35(2), pages 139-160, April.
  11. Sanchez, Ron, 2004. "Understanding competence-based management: Identifying and managing five modes of competence," Journal of Business Research, Elsevier, vol. 57(5), pages 518-532, May.
  12. Philippe Moati & El Mouhoub Mouhoud, 2005. "Les nouvelles logiques de décomposition internationale des processus productifs," Revue d'économie politique, Dalloz, vol. 115(5), pages 573-589.
  13. Vincent Frigant & Med Kechidi & Damien Talbot, 2006. "Les territoires de l'aéronautique : EADS, entre mondialisation et ancrage," Post-Print hal-00257451, HAL.
  14. Kim B. Clark, 1989. "Project Scope and Project Performance: The Effect of Parts Strategy and Supplier Involvement on Product Development," Management Science, INFORMS, vol. 35(10), pages 1247-1263, October.
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