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How do SMEs to rise at the top of the supply chain? An econometric exploration of the French auto industry (In French)

Author

Listed:
  • Vincent FRIGANT
  • Stéphanie PERES
  • Stéphane VIROL

Abstract

The modular revolution has transformed the industrial architecture of the automotive supply chain. Now it is conventional to describe it as a narrow pyramid where only mega-suppliers have access to manufacturers. However, some authors show that SME still manage to reach the summit of a pyramid which is less narrow and closed that it is usually presented. In this way, this article proposes a theoretical interpretation of the reasons for SMEs to access the supply pyramid forefront. We defend the thesis that E. Penrose interstices appear in the automotive industry. So SMEs are able to interfere at the highest level of the pyramid and, in future, it is likely to renew. In a second step, we clarify using an ordered probability model what are the characteristics of SMEs according to their rank in the pyramid. We use an unique database. This work allows us to identify the main determinants of the SMEs position in the supply chain.

Suggested Citation

  • Vincent FRIGANT & Stéphanie PERES & Stéphane VIROL, 2012. "How do SMEs to rise at the top of the supply chain? An econometric exploration of the French auto industry (In French)," Cahiers du GREThA (2007-2019) 2012-16, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    • Handle: RePEc:grt:wpegrt:2012-16
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    References listed on IDEAS

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    More about this item

    Keywords

    SME; Supply chain; Interstices; Penrose; Automobile;
    All these keywords.

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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