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Alternative Component Sourcing Strategies within the Manufacturer-Supplier Network: Benefits of Quasi-Market Strategy in the Japanese Automobile Industry

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dc.contributor.author Nobeoka, Kentaro
dc.date.accessioned 2002-09-04T17:06:13Z
dc.date.available 2002-09-04T17:06:13Z
dc.date.issued 2002-09-04T17:06:14Z
dc.identifier.uri http://hdl.handle.net/1721.1/1628
dc.description.abstract This study examines the component sourcing strategy of the Japanese automobile manufacturers, focusing on the sourcing concentration and the sharing common suppliers with competitors. We have analyzed sourcing strategy of six Japanese car assemblers (Toyota, Nissan, Honda, Mitsubishi, Mazda, and Suzuki) regarding 95 components. We have found that firms using a broad manufacturer-supplier network tend to be more profitable. In other words, firms with a low sourcing concentration and a high supplier sharing, which are the characteristics of quasi-market strategy, tend to perform better than the other firms. Among the six manufacturers, Toyota, Mitsubishi, and Suzuki were categolized as firms that followed quasi-market strategy. We believe that this finding is interesting because this relationship has been found in the context of the Japanese supplier-assembler relationship. The Japanese cooperative inter-firm relationship is supposed to be beneficial to suppliers, as well as to assemblers. It is commonly considered that a relatively exclusive keiretsu system facilitates these close inter-firm ties. However, the results in this study imply that a few leading Japanese automobile manufacturers may have management capabilities in benefiting from both a relatively broad supplier base and cooperative relationship with individual suppliers. en
dc.format.extent 30732 bytes
dc.format.mimetype application/pdf
dc.language.iso en_US
dc.subject Japanese automobile manufacturers en
dc.subject quasi-market strategy en
dc.subject manufacturer-supplier network en
dc.subject component sourcing en
dc.title Alternative Component Sourcing Strategies within the Manufacturer-Supplier Network: Benefits of Quasi-Market Strategy in the Japanese Automobile Industry en


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