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The Contractual Framework for Parts Supply in the Japanese Automotive Industry

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  • Banri Asanuma

Abstract

It is reported that the General Motors Corporation has begun a major renovation of the main full-size-car plant of its Buick Division, Buick City, Flint, Michigan, in order to boost productivity, and that, as part of this plan, it is attempting to induce its parts manufacturers to concentrate the location of their supply base around this plant so that parts can be supplied via the "just-in-time" method.1 This report also informs us that GM invites the cooperation of Japanese parts makers and that, in January 1983, the Japan-GM Cooperative Association was formed, of which there are fifty-five corporate members as of June 1983. The report succinctly demonstrates that the parts procurement method and the approach of organizing parts makers that the Japanese automobile manufacturers have developed have become the object of learning by a representative car maker in the United States, and that the effort is being made to transplant them to the United States.

Suggested Citation

  • Banri Asanuma, 1985. "The Contractual Framework for Parts Supply in the Japanese Automotive Industry," Japanese Economy, Taylor & Francis Journals, vol. 13(4), pages 54-78.
    • Handle: RePEc:mes:jpneco:v:13:y:1985:i:4:p:54-78
    DOI: 10.2753/JES1097-203X130454
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    Cited by:

    1. José De Sousa & Xavier Fairise, 2009. "Do we need handshakes to cooperate in buyer-supplier relationships?," Documents de recherche 09-15, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    2. Bonaccorsi, Andrea & Giuri, Paola, 2000. "When shakeout doesn't occur: The evolution of the turboprop engine industry," Research Policy, Elsevier, vol. 29(7-8), pages 847-870, August.
    3. Liker, Jeffrey K. & Kamath, Rajan R. & Nazli Wasti, S. & Nagamachi, Mitsuo, 1996. "Supplier involvement in automotive component design: are there really large US Japan differences?," Research Policy, Elsevier, vol. 25(1), pages 59-89, January.
    4. Morita, Hodaka & Nakahara, Hirohiko, 2004. "Impacts of the information-technology revolution on Japanese manufacturer-supplier relationships," Journal of the Japanese and International Economies, Elsevier, vol. 18(3), pages 390-415, September.
    5. McLaren, John, 1999. "Supplier relations and the market context: A theory of handshakes," Journal of International Economics, Elsevier, vol. 48(1), pages 121-138, June.
    6. Alessandro Lomi & Philippa Pattison, 2006. "Manufacturing Relations: An Empirical Study of the Organization of Production Across Multiple Networks," Organization Science, INFORMS, vol. 17(3), pages 313-332, June.
    7. Andrea Bonaccorsi & Paola Giuri, 2000. "Industry Life Cycle and the Evolution of an Industry Network," LEM Papers Series 2000/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    8. Li, Hongmin & Wang, Yimin & Yin, Rui & Kull, Thomas J. & Choi, Thomas Y., 2012. "Target pricing: Demand-side versus supply-side approaches," International Journal of Production Economics, Elsevier, vol. 136(1), pages 172-184.
    9. Jose De Sousa & Xavier Fairise, 2013. "On the value of partial commitment for cooperative investment in buyer-supplier relationship," TEPP Working Paper 2013-08, TEPP.
    10. You, Jing & Imai, Katsushi S. & Gaiha, Raghav, 2016. "Declining Nutrient Intake in a Growing China: Does Household Heterogeneity Matter?," World Development, Elsevier, vol. 77(C), pages 171-191.
    11. Noriaki Matsushima & Laixun Zhao, 2015. "Strategic dual sourcing as a driver for free revealing of innovation," ISER Discussion Paper 0936, Institute of Social and Economic Research, Osaka University.
    12. R Florida & M Kenney, 1990. "High-Technology Restructuring in the USA and Japan," Environment and Planning A, , vol. 22(2), pages 233-252, February.
    13. Roger Hayter & Jerry Patchell, 1993. "Different Trajectories in the Social Divisions of Labour: The Cutlery Industry in Sheffield, England, and Tsubame, Japan," Urban Studies, Urban Studies Journal Limited, vol. 30(8), pages 1427-1445, October.
    14. Juliana Hsuan Mikkola, 2000. "Modularization Assessment of Product Architecture," DRUID Working Papers 00-4, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    15. Baiman, Stanley & Rajan, Madhav V., 2002. "Incentive issues in inter-firm relationships," Accounting, Organizations and Society, Elsevier, vol. 27(3), pages 213-238, April.
    16. Noriaki Matsushima & Laixun Zhao, 2018. "Technology spillovers and outside options in a bilateral duopoly," ISER Discussion Paper 1039, Institute of Social and Economic Research, Osaka University.
    17. José Sousa & Xavier Fairise, 2014. "On the value of partial commitment for cooperative investment in buyer–supplier relationship," Journal of Economics, Springer, vol. 111(2), pages 151-171, March.
    18. J Patchell, 1999. "Creating the Japanese Electric Vehicle Industry: The Challenges of Uncertainty and Cooperation," Environment and Planning A, , vol. 31(6), pages 997-1016, June.
    19. Mariko Sakakibara & Hideki Yamawaki, 2008. "What determines the profitability of foreign direct investment? A subsidiary-level analysis of Japanese multinationals," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(2-3), pages 277-292.
    20. Junya Sakaguchi & Yutaka Kato & Nobumasa Shimizu, 2005. "Valiability of Buyer-Supplier Relationships: Empirical Evidence from Japanese Keiretsu Systems," Discussion Papers 2005-03, Kobe University, Graduate School of Business Administration.

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