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How do SMEs to rise at the top of the supply chain? An econometric exploration of the French auto industry (In French)

Author

Listed:
  • Vincent FRIGANT (GREThA, CNRS, UMR 5113)
  • Stéphanie PERES (Bordeaux Sciences Agro, INRA, ISVV, USC 1320 GAIA)
  • Stéphane VIROL (GREThA, CNRS, UMR 5113)

Abstract

The modular revolution has transformed the industrial architecture of the automotive supply chain. Now it is conventional to describe it as a narrow pyramid where only mega-suppliers have access to manufacturers. However, some authors show that SME still manage to reach the summit of a pyramid which is less narrow and closed that it is usually presented. In this way, this article proposes a theoretical interpretation of the reasons for SMEs to access the supply pyramid forefront. We defend the thesis that E. Penrose interstices appear in the automotive industry. So SMEs are able to interfere at the highest level of the pyramid and, in future, it is likely to renew. In a second step, we clarify using an ordered probability model what are the characteristics of SMEs according to their rank in the pyramid. We use an unique database. This work allows us to identify the main determinants of the SMEs position in the supply chain.

Suggested Citation

  • Vincent FRIGANT (GREThA, CNRS, UMR 5113) & Stéphanie PERES (Bordeaux Sciences Agro, INRA, ISVV, USC 1320 GAIA) & Stéphane VIROL (GREThA, CNRS, UMR 5113), 2012. "How do SMEs to rise at the top of the supply chain? An econometric exploration of the French auto industry (In French)," Cahiers du GREThA 2012-16, Groupe de Recherche en Economie Théorique et Appliquée.
  • Handle: RePEc:grt:wpegrt:2012-16
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    File URL: http://cahiersdugretha.u-bordeaux4.fr/2012/2012-16.pdf
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    References listed on IDEAS

    as
    1. Langlois, Richard N., 2002. "Modularity in technology and organization," Journal of Economic Behavior & Organization, Elsevier, vol. 49(1), pages 19-37, September.
    2. Vincent Frigant, 2011. "Are carmakers on the wrong track? Too much outsourcing in an imperfect-modular industry can be harmful," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, pages 324-343.
    3. Josh Whitford & Aldo Enrietti, 2005. "Surviving the Fall of a King: The Regional Institutional Implications of Crisis at Fiat Auto," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 29(4), pages 771-795, December.
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    9. Richard N. Langlois, 2003. "The vanishing hand: the changing dynamics of industrial capitalism," Industrial and Corporate Change, Oxford University Press, pages 351-385.
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    13. Vincent FRIGANT (GREThA, CNRS, UMR 5113), 2011. "Egyptian pyramid or Aztec pyramid: How should we describe the industrial architecture of automotive supply chains in Europe?," Cahiers du GREThA 2011-27, Groupe de Recherche en Economie Théorique et Appliquée.
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    More about this item

    Keywords

    SME; Supply chain; Interstices; Penrose; Automobile;

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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