Contracting, Directed Parts, and Complexity in Automotive Outsourcing Decisions
نویسندگان
چکیده
In this paper, we examine the outsourcing of interior systems for luxury automobiles. We use insights gleaned from original field interviews and contracts obtained from both buyers and suppliers to construct a theoretical framework and to empirically evaluate the interaction of product complexity, contract structure and buyer involvement in supplier product development in determining program pricing and performance. This is the first such attempt in the literature. We find that directed parts and complexity serve as strongly negative substitutes in the determination of the equilibrium bid price, and that this effect is so strong that it can even counter the individual effects on pricing. (Product Development; Outsourcing, Complexity, Contracts, Directed Parts)
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تاریخ انتشار 2003