Bart Kamp
Outsourcing, Teamwork and Business Management ISBN: 978-1-60456-956-8 Editor: Karl E. Carettas, pp. 191-212
English // buyer-supplier relationships, single sourcing, automotive industry, flagship firms.
Description
The Flagship / 5 Partners model argues that key suppliers are dedicated exclusively to flagship firms and that flagship firms work on an exclusive basis with key suppliers. As the F/5P model is partly rooted in empirical analyses of the North-American automotive industry, it is interesting to test its external validity on the European car industry. Similarly, it seems relevant to test its claim of exclusive buyer-supplier relationships as there are also scholars that report on non-exclusive b2b practices. This paper analyzes the component supply relationships for 32 car models to test the exclusivity presumptions of the F/5P model. Results show that industry-wide client bases on behalf of suppliers and multiple sourcing practices by carmakers are a stronger empirical reality than exclusive flagship firm-key supplier relationships. Outcomes also indicate that previously in-house parts of carmakers successfully succeed in establishing client relationships with third party OEMs.The Flagship / 5 Partners model argues that key suppliers are dedicated exclusively to flagship firms and that flagship firms work on an exclusive basis with key suppliers. As the F/5P model is partly rooted in empirical analyses of the North-American automotive industry, it is interesting to test its external validity on the European car industry. Similarly, it seems relevant to test its claim of exclusive buyer-supplier relationships as there are also scholars that report on non-exclusive b2b practices. This paper analyzes the component supply relationships for 32 car models to test the exclusivity presumptions of the F/5P model. Results show that industry-wide client bases on behalf of suppliers and multiple sourcing practices by carmakers are a stronger empirical reality than exclusive flagship firm-key supplier relationships. Outcomes also indicate that previously in-house parts of carmakers successfully succeed in establishing client relationships with third party OEMs.
