Title: Supplier involvement in automotive component design: outsourcing strategies and supply chain management

Authors: Mauro Caputo, Francesco Zirpoli

Addresses: Universita degli Studi di Salerno, Department of Mechanical Engineering, Via Ponte don Melillo, 1, 84084 Fisciano (SA), Italy. Universita degli Studi di Salerno, Department of Mechanical Engineering, Via Ponte don Melillo, 1, 84084 Fisciano (SA), Italy

Abstract: In this paper, the analysis is drawn on the motivations, modalities and consequences of supplier involvement in automotive component design. Outsourcing decisions affect the set of core competencies of buyer and supplier and, given certain circumstances, induce a migration of competencies from OEMs to suppliers. An in-depth exploratory multiple case study on a major European car maker and two of its suppliers revealed that this migration of competencies should not threaten the leadership of car makers within the supply chain if it is associated with: (1) a strong competence of the car maker as system integrator and (2) a new way of conceiving supply chain management.

Keywords: outsourcing; buyer-supplier relationship; new product development; automobile industry.

DOI: 10.1504/IJTM.2002.003002

International Journal of Technology Management, 2002 Vol.23 No.1/2/3, pp.129-159

Available online: 09 Jul 2003

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