The varying use of online supplier portals in auto parts‐automotive value chains and its implications for learning and upgrading: The case for the Mexican and Turkish suppliers

Abstract

This article examines the use of online supplier portals (OSPs) in managing lead firm–supplier relations in global auto parts‐automotive value chains (AACs) from suppliers’ point of view, and the implications of OSP usage for upgrading prospects of suppliers from middle‐income countries. The research is based on interviews with representatives of 33 auto parts suppliers and stakeholders of the auto parts‐automotive industry from Turkey and Mexico. The article has three main findings. Firstly, the use of OSPs is not the same across AACs and depends on the existing governance structures in these chains. Secondly, OSPs are used more in AACs with loose governance structures while their usage decreases as supplier–buyer coordination increases, which contrasts the mainstream expectations. Thirdly, the use of OSPs is not transforming the governance structures or implications of these structures for suppliers but rather reinforces the existing dynamics in these aspects.

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“…Sancak (2021) discusses the use of online supplier portals (OSPs) operated by lead firms in the global auto parts automotive value chains on suppliers. She finds that OSPs reinforce existing governance structures as they are used in the context of arm's length relationships that do not require a lot of formalized exchange.…”

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