Title: Endangering social and economic sustainability: supplier management in the automobile industry

Authors: Michael S. Asslander, Julia Roloff

Addresses: International Graduate School Zittau, Department of Social Sciences, Markt 23, 02763 Zittau, Germany. ' ESC Rennes School of Business, Management and Organisation Department, 2, rue Robert d'Arbrissel, 35065 Rennes, France

Abstract: During the last ten years, the automobile industry compensated its economic deficiencies by outsourcing costs towards suppliers. A case study on a German automotive supplier illustrates to what extent the focus on low costs limits the supplier|s corporate autonomy, in particular its ability to run its business according to its own rules, and reveals how an increasing loss of independency in buyer-supplier-relationships endangers the suppliers| contribution to social and economic sustainability. Current layoffs and bankruptcy in the automotive supply industry are not only caused by world economic crisis but also a direct result of unsustainable sourcing policy of the big car manufacturers employing problematic and illegitimate practices.

Keywords: SCM; supply chain management; automobile industry; corporate autonomy; social sustainability; economic sustainability; supplier management; outsourcing; low costs; Germany; automotive products; independency; buyer-supplier relationships; layoffs; bankruptcies; economic crises; unsustainable policies; sourcing policies; motor vehicle manufacturers; problematic practices; illegitimate practices; sustainable strategic management.

DOI: 10.1504/IJSSM.2010.038300

International Journal of Sustainable Strategic Management, 2010 Vol.2 No.3, pp.256 - 273

Published online: 28 Jan 2011 *

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