Title: Electronic technology and parts procurement: a case of the automobile industry

Authors: Takahiro Fujimoto, Jewheon Oh

Addresses: Faculty of Economics, University of Tokyo, 7-3-1 Hongo, Bunkyo-ku, Tokyo 113-0033, Japan. ' Department of Business Management, Takaoka National College, 180 Futagami-cho, Takaoka, Toyama 933-8588, Japan

Abstract: Inter-firm information systems in the automobile industry have evolved from firm-specific networks to industrial standard networks and, further, to the internet. This paper examines how electronic parts procurement systems in the automobile industry affected its patterns of inter-firm transactions through empirical studies on information networks, transaction systems and architectural characteristics of automobile parts. We argue that selection of a certain parts transaction system tends to affect choice of the mode of information system that might best fit the transaction information between the firms. Conversely, once a particular type of information is chosen, the mode of information exchanges and patterns of competition between suppliers and transaction systems would also be changed. In this way, inter-firm information systems, transaction patterns, and architectures of the parts would co-evolve through dynamic interactions among them.

Keywords: parts architecture; co-evolvement; firm-specific networks; industrial standard networks; JNX; internet procurement; Covisint; transaction systems; automobile industry; inter-firm information systems; electronic parts procurement; e-procurement; automotive parts procurement.

DOI: 10.1504/IJATM.2004.006286

International Journal of Automotive Technology and Management, 2004 Vol.4 No.4, pp.324 - 335

Published online: 13 Feb 2005 *

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