Disentangling the complexity of supply relationship formations: Firm product diversification and product ubiquity in the Japanese car industry

Kito, Tomomi, New, Steve and Reed-Tsochas, Felix (2018) Disentangling the complexity of supply relationship formations: Firm product diversification and product ubiquity in the Japanese car industry. International Journal of Production Economics, 206. pp. 159-168.

Abstract

The factors and mechanisms that drive the formation of inter-firm supply relationships are complex, and reflect varying strategies that different firms use when building product portfolios. This study aims to disentangle these complex patterns of interactions specifically by focusing on product diversification and product interdependencies in individual firms, as well as product rarity/ubiquity. The empirical data, which captures the formation of supply relationships between carmakers and their suppliers for 200 products, was analyzed using methods developed in the emerging field of network science. The results provided significant insights into how firms' portfolios vary and interdepend, how firms diversify their portfolios, and how the effect of these may be reflected in the formation of inter-firm relationships.

Item Type: Article
Keywords: Supply relationships, Complexity, Network analysis, Product portfolio, Diversification, Operations Management, Supply chain management, Complex systems
Subject(s): Operations management
Complexity
Centre: CABDyN Complexity Centre
Date Deposited: 23 Oct 2018 14:09
Last Modified: 07 Nov 2018 15:39
Funders: n/a
URI: http://eureka.sbs.ox.ac.uk/id/eprint/7028

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