SPECIALIZED SUPPLIER NETWORKS AS A SOURCE OF COMPETITIVE ADVANTAGE: EVIDENCE FROM THE AUTO INDUSTRY

SPECIALIZED SUPPLIER NETWORKS AS A SOURCE OF COMPETITIVE ADVANTAGE: EVIDENCE FROM THE AUTO INDUSTRY This study examines the relationship between interfirm asset specificity and performance in the auto industry. More specifically, I examine the extent to which differences in supplier–automaker asset specialization may explain performance differences between Japanese automakers (Nissan and Toyota) and U.S. automakers (Chrysler, Ford, General Motors). The findings indicate a positive relationship between supplier–automaker specialization and performance. In particular, the data suggest a positive relationship between interfirm human asset cospecialization and both quality and new model cycle time. Moreover, site specialization is found to be positively associated with lower inventory costs. The findings suggest that in the auto industry a tightly integrated production network characterized by proximity and a high level of human cospecialization will outperform a loosely integrated production network characterized by low levels of interfirm specialization. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategic Management Journal Wiley

SPECIALIZED SUPPLIER NETWORKS AS A SOURCE OF COMPETITIVE ADVANTAGE: EVIDENCE FROM THE AUTO INDUSTRY

Strategic Management Journal, Volume 17 (4) – Apr 1, 1996

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Publisher
Wiley
Copyright
Copyright © 1996 John Wiley & Sons, Ltd.
ISSN
0143-2095
eISSN
1097-0266
DOI
10.1002/(SICI)1097-0266(199604)17:4<271::AID-SMJ807>3.0.CO;2-Y
Publisher site
See Article on Publisher Site

Abstract

This study examines the relationship between interfirm asset specificity and performance in the auto industry. More specifically, I examine the extent to which differences in supplier–automaker asset specialization may explain performance differences between Japanese automakers (Nissan and Toyota) and U.S. automakers (Chrysler, Ford, General Motors). The findings indicate a positive relationship between supplier–automaker specialization and performance. In particular, the data suggest a positive relationship between interfirm human asset cospecialization and both quality and new model cycle time. Moreover, site specialization is found to be positively associated with lower inventory costs. The findings suggest that in the auto industry a tightly integrated production network characterized by proximity and a high level of human cospecialization will outperform a loosely integrated production network characterized by low levels of interfirm specialization.

Journal

Strategic Management JournalWiley

Published: Apr 1, 1996

References

  • Strategic assets and organizational rent
    Amit, Amit; Schoemaker, Schoemaker
  • How much does industry matter?
    Rumelt, Rumelt
  • Reputation and corporate strategy: A review of recent theory and applications
    Weigelt, Weigelt; Camerer, Camerer

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