Using the framework of contract economics, we assess the determinants of the choice of vertical integration, relational contracting (keiretsu sourcing) or market sourcing by seven Japanese automobile manufacturers (OEMs) with respect to 54 components. Our major findings are as follows. First,...

This paper analyzes the modularization in the world auto industry. The modularization in the industry has involved architectural changes in product, production, and supplier systems with each region (Japan, Europe and the U.S.A.) emphasizing different purposes and aspects. As an attempt to...

This paper summarizes a questionnaire survey conducted in the first half of 1999 as to historical developments and recent trends of parts transaction practices, component design architecture, inter-firm knowledge transfer, and competitive performance. 153 Japanese first-tier parts suppliers...

We have assessed the determinants of the choice of integration, relational contracting (keiretsu sourcing) and market sourcing by seven Japanese automobile manufacturers (OEMs) with respect to 54 components in light of contract economics. Our major findings are the following. First, the...