Bridging Inter- and Intra-firm Boundaries: Management of Supplier Involvement in Automobile Product Development
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Takeishi1.pdf
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287.63 KB
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925b4c58ecbfe57ce9a86f8b539233e1
Author(s)
Takeishi, Akira
Date Issued
November 1, 1999
Abstract
Outsourcing has become an important strategy for many firms. Yet, firms need to
compete with their competitors who also outsource and may share the same suppliers.
This article explores how a firm could outperform others in managing the division of
labor with a supplier in product development. Drawing on the empirical data collected
from the Japanese auto industry, this paper shows that an automaker needs capabilities
to coordinate various activities both externally with a supplier and internally within its
own organization, in order to gain better component development performance. Overall,
the results imply that outsourcing does not work effectively without extensive internal
effort.
Subjects
automobile product development
outsourcing
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