Line | In recent years, Western business managers have |
been heeding the exhortations of business journalists | |
and academics to move their companies toward | |
long-term, collaborative “strategic partnerships” with | |
(5) | their external business partners (e.g., suppliers). |
The experts’ advice comes as a natural reaction to | |
numerous studies conducted during the past decade | |
that compared Japanese production and supply | |
practices with those of the rest of the world. The | |
(10) | link between the success of a certain well-known |
Japanese automaker and its effective management of | |
its suppliers, for example, has led to an unquestioning | |
belief within Western management circles in the value | |
of strategic partnerships. Indeed, in the automobile | |
(15) | sector all three United States manufacturers and |
most of their European competitors have launched | |
programs to reduce their total number of suppliers | |
and move toward having strategic partnerships with | |
a few. | |
(20) | However, new research concerning supplier |
relationships in various industries demonstrates that | |
the widespread assumption of Western managers | |
and business consultants that Japanese firms | |
manage their suppliers primarily through strategic | |
(25) | partnerships is unjustified. Not only do Japanese |
firms appear to conduct a far smaller proportion of | |
their business through strategic partnerships than | |
is commonly believed, but they also make extensive | |
use of “market-exchange” relationships, in which | |
(30) | either party can turn to the marketplace and shift to |
different business partners at will, a practice usually | |
associated with Western manufacturers. |