Coordination of Automotive Supplier Networks: Different approaches towards utilizing Power and Trust as Coordination Mechanisms

Growing development expenditures in technological innovation and competitive pressure on time-to-market lead to a high task split in automotive value chains. In recent years, we have observed different coordination approaches to manage increasing complexity and cost pressure. Based on network theory and the coordination mechanisms of power and trust we explore, how these development influences the relationship between suppliers and automotive OEMs (Original Equipment Manufacturer). An embedded case study, consisting of two automotive OEMs and seven suppliers, which deliver into both supplier networks, provides empirical insights on differences in coordination mechanisms. The outlook suggests that OEMs can strategically choose their way of coordinating their supplier network. The theoretical implication is that additional aspects like corporate culture and company specific strategic goals need to be included when utilizing network theory for exploring the relevance of coordination mechanisms in an industry.