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Examines the individual buyer-supplier relationships of the four major Japanese automobile manufacturers. Building on the relationship marketing and the interorganizational trust literature, relates their supplier management practices to the type of supplier organizations they use, the relative sales revenues, number of employees, and profitability of both buyers and suppliers, and the level of equity held by automakers in their suppliers. Major finding reveals that the major Japanese automakers have far more diversity than commonality in their supplier policies, and suggests that a comparison of major Japanese companies individually, not collectively, is a rich area of research into buyer-supplier relationships.
Responding to Michael Porter's claim that "Japanese companies rarely have a strategy", this paper argues that the competitive advantage of Japanese enterprises is not to be found in traditional practices. Rather, it is due to the way these practices are upgraded and reinforced by ideological factors such as the "community of fate", as well as the formation of governance structures that cultivate the development of contextual knowledge that leads to the efficient and effective production of complex products.
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© Orient Pacific Century 1999
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