Improving Supplier Power in the Buyer-Dominated Automotive Industry

ABSTRACT

This research develops a theoretical framework to study power distribution in industrial relationships. The framework captures the complexity of power and proves useful for tracing changes in power status over time between value chain members in industrial relationships. We apply the framework in the light of the longitudinal case study of Magna International Inc., a Canadian automotive supplier, and induce a strategic path for suppliers to improve their power status against OEMs.

KEYWORDS:

• Automotive industry
• industrial relationships
• power

The authors thank the Foundation for Economic Education in Finland for their financial support.

Notes

Source: Magna.

Additional information

Notes on contributors

Murat Akpinar

Murat Akpinar, MSc, is Researcher, at the Turku School of Economics, Turku, Finland.

Peter Zettinig

Peter Zettinig, PhD, is Assistant Professor at the Turku School of Economics, Turku, Finland.