search query: @indexterm make or buy decisions / total: 42
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| Author: | Veloso, F. Fixson, S. |
| Title: | Make-Buy Decisions in the Auto Industry: New Perspectives on the Role of the Supplier as an Innovator |
| Journal: | Technological Forecasting and Social Change
2001 : JUN-JUL, VOL. 67:2-3, p. 239-257 |
| Index terms: | CARS MAKE OR BUY DECISIONS SUPPLIERS INNOVATION |
| Language: | eng |
| Abstract: | This paper provides a new framework to analyse the decision of the automakers of whether to develop a new component in-house or to subcontract it to a supplier. The authors' perspective follows some recent insights proposed by the property rights theory of the firm, whereby a decision to pass the development of the innovation from the assemblers to the suppliers exists when the supplier product shifts from being complementary to being independent of the assembler product. The hypothesis the authors explore is that modularization of the automobile is a strong enabler of product independence, being the key driver of increasing supplier responsibility. The authors' analysis is based on detailed case studies of two important innovations that were introduced in the automotive over the past decades: the Antilock Brake System (ABS) and the airbag. |
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