Local advantage and the local supplier relationship of the subsidiary of MNC in the host country : A case study of Japanese electronic manufacturing companies in China

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  • 立地特性と現地サプライヤー関係 : 中国日系電子機器メーカーの事例
  • リッチ トクセイ ト ゲンチ サプライヤー カンケイ : チュウゴク ニッケイ デンシ キキ メーカー ノ ジレイ

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Abstract

This study aims to investigate MNC relationship with the local suppliers under different local environment on product development activity. As previous researches indicate that while the firms in US tended to have arm's length relationship with their suppliers, the Japanese firms tended to build closer one. However, Japanese MNC supplier system in overseas seems to be slightly different from what existing literatures mentioned. That is in order to cope with the local environment in one country, even the companies with the same business practice or culture background, they may have different supplier management overseas. The author uses a case study of two Japanese electronic manufacturing companies to reveal how MNCs involve the local suppliers on product development under different local environment within the country. In short, the study found that one company had a highly interdependent partner relationship, the other had an arm's length one. This indicates, "one best way" to build the supplier relationship does not always work, and MNCs need to design the task partition with the local suppliers to match the different locational advantages.

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