Integrated Sourcing: issues of Dependency, Reliance, and Innovation 890233

The popular image of the Japanese model of supplier relations emphasizes the role of trust. Reliance is a better description of the key attribute of the relationship. The manufacturers and suppliers dependency upon each other fosters reliance, and many other positive aspects of these relations. But it also produces a power imbalance in the relationship, and that is a source of many of the relationship's positive outcomes. It is unclear whether Japanese style relationships hinder or facilitate effective innovation, although they appear likely to facilitate diffusion, perhaps especially in process developments. However, the very different business conditions facing today's U.S. auto industry from those that faced Japan in the 1950s and 1960s mitigate against our successful adoption of the entire model. U.S. efforts should perhaps focus more on adapting relevant elements of the Japanese model rather than adopting the full model as we understand it.


Subscribers can view annotate, and download all of SAE's content. Learn More »


Members save up to 43% off list price.
Login to see discount.
Special Offer: With TechSelect, you decide what SAE Technical Papers you need, when you need them, and how much you want to pay.