Specialized Supplier Networks as a Source of Competitive Advantage: Evidence From the Auto Industry

Dyer, Jeffrey H.

doi:10.1002/(sici)1097-0266(199604)17:4<271::aid-smj807>3.0.co;2-y

Cited by 1,243 publications

(942 citation statements)

References 36 publications

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“…In changing markets, such as fair trade, Grant (1996) and Kogut (1996) indicate the manipulation of wide-ranging, timely, relevant informational resources is critical. As such the creation of unique inter-firm alliances is promoted as an aid to providing important information for creating a competitive advantage, through sharing resources, knowledge and expertise (Dyer and Singh, 1998;Dyer, 1996;Hamel, 1991). The case organisations provide valuable insight into networking for mutual advantage in practice.…”

Section: Intellectual Developmentmentioning

confidence: 99%

Alliances and Networks: Creating Success in the UK Fair Trade Market

Davies

2008

J Bus Ethics

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Data from a longitudinal study into the key management success factors the fair trade industry, provides insights into the essential nature of inter-organisational alliances and networks in creating the profitable and growing fair trade market in the UK.Drawing on three case studies and extensive industry interviews, we provide an interpretive perspective on the organisational relationships and business networks, and the way in which these have engendered success for UK fair trade companies. Three types of benefit are derived from the networks, Competitive Developments through virtual integration the organisations remain flexible and small whilst projecting size to the market, Intellectual Developments through the sharing of intellectual capital with a diverse network of organisations in many fields, and Ideological Developments through an Ideological Network of like minded individuals the companies can protect themselves from the assimilation of the original purpose of fair trade, to help the developing world. However, relative success at leveraging these benefits is influenced by three managerial factors, Partner Choice, Partner Use and Partner Management. Key WordsFair trade Commercialisation Alliances and networks Ideology IntroductionThe fair trade movement sprang from a desire to encourage community development in some of the most deprived areas of the world (Brown, 1993). Fair trade is achieved through the "application, monitoring and enforcement of a fair trade supply agreement 3 and code of conduct typically verified by an independent social auditing system" (Crane and Matten, 2004: p.333). Despite its public perception of being almost like a charity (Mintel, 2004), many fair trade organisations are, in-fact, profit seeking organisations (Davies and Crane, 2003, Moore, 2004). Similarly brands are now aimed at targeting mainstream customer groups and compete head-to-head for shelf space with major retail brands (Low and Davenport, 2006;Moore, 2004; Nichols and Opal, 2005;Wilkinson, 2007). Therefore despite distribution of profits (and supply chains) differing from many businesses within their markets the processes of marketing, sales and logistics are, in principle, identical to other small, social entrepreneurial start up companies (see Mair, Robinson and Hockerts, 2006;Davies, 2007). This paper investigates the importance of inter-organisational alliances and networks in creating the profitable and growing fair trade market in the UK. Drawing on three case studies, data from longitudinal participant observation, interviews and secondary sources provide an interpretive perspective on the organisational relationships and business networks. Focusing on the benefits that accrue from networked partnerships, not the structure of these partnerships, the contribution of this paper is to bring the importance of these networks to the fore in future fair trade discussions. This research uncovers that alliances and inter-company networks have been purposefully embedded in the fair trade industry since it...

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Section: Intellectual Developmentmentioning

confidence: 99%

Alliances and Networks: Creating Success in the UK Fair Trade Market

Davies

2008

J Bus Ethics

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“…The work of many researchers such as Asanuma (1989), Helper (1995, Dyer (1996), andFujimoto (1989) indicates that the keiretsu relationship permits richer information exchange between Japanese manufacturers and their partially owned keiretsu suppliers than between financially separate firms. If greater information sharing were possible between keiretsu firms, then the coordination problem encountered by the firm in components development would be lower with keiretsu (versus non-keiretsu) suppliers.…”

Section: Novak and Eppinger Product Complexity And The Supply Chainmentioning

confidence: 99%

Sourcing By Design: Product Complexity and the Supply Chain

2001

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T his paper focuses on the connection between product complexity and vertical integration using original empirical evidence from the auto industry. A rich literature has addressed the choice between internal production and external sourcing of components in the auto industry. More recent literature has developed the concept of product architecture as another choice variable that may be one of the important contributors to product complexity. In this paper, we connect these two important decisions and study them jointly. We use the property rights approach to argue that complexity in product design and vertical integration of production are complements: that in-house production is more attractive when product complexity is high, as firms seek to capture the benefits of their investment in the skills needed to coordinate development of complex designs. We test this hypothesis with a simultaneous equations model applied to data from the luxury-performance segment of the auto industry. We find a significant and positive relationship between product complexity and vertical integration. This has implications for optimal incentive structures within firms, as well as for interpreting firm performance.

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“…Collaboration, in this sense, can transform the structure of inter-organizational relationships; those organizations that act jointly take up a more central position in their network (e.g Dyer, 1996;Gulati, 1998;Nohria & Eccles, 1992;Wasserman & Galaskiewicz, 1994;Bourdieu, 1993;Laclau & Mouffe, 1985;Nahapiet & Ghoshal, 1998).…”

Section: Literature On Collaborationmentioning

confidence: 99%