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Supplier Relations—Extended Quasi-Vertical Integration

In: Agile Against Lean

Author

Listed:
  • Hyung Je Jo

    (University of Ulsan)

  • Jun Ho Jeong

    (Kangwon National University)

  • Chulsik Kim

    (The Academy of Korean Studies)

Abstract

This chapter analyzes the characteristics of Hyundai Motor’s parts supply structure. Hyundai Motor has a supply chain that is markedly different from those of other automakers. We conceptualize it as ‘extended quasi-vertical integration.’ Hyundai Motor had initially established this network by bringing not only affiliated but also non-affiliated parts suppliers into its subcontracting system in the 1980s thanks to government support. This has been later systematized through Hyundai Mobis’ advances in the production of modular parts and bureaucratic quality assurance since the 2000s. Hyundai Motor’s extended quasi-vertical integration can be distinguished from Japanese keiretsu in that the former encompasses not only group affiliates linked by complex equity ownership relationships but also independent companies that are not.

Suggested Citation

  • Hyung Je Jo & Jun Ho Jeong & Chulsik Kim, 2023. "Supplier Relations—Extended Quasi-Vertical Integration," Springer Books, in: Agile Against Lean, chapter 0, pages 171-195, Springer.
    • Handle: RePEc:spr:sprchp:978-981-99-2042-6_5
    DOI: 10.1007/978-981-99-2042-6_5
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