Bridging inter- and intra-firm boundaries: management of supplier involvement in automobile product development
Article first published online: 4 APR 2001
Copyright © 2001 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 22, Issue 5, pages 403–433, May 2001
How to Cite
Takeishi, A. (2001), Bridging inter- and intra-firm boundaries: management of supplier involvement in automobile product development. Strat. Mgmt. J., 22: 403–433. doi: 10.1002/smj.164
- Issue published online: 4 APR 2001
- Article first published online: 4 APR 2001
- Manuscript Accepted: 8 NOV 2000
- Manuscript Received: 16 NOV 1998
- outsourcing; supplier relations; product development; competitive advantage
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. Copyright © 2001 John Wiley & Sons, Ltd.