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Co-opetition and knowledge co-creation in Japanese supplier-networks: The case of Toyota

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Abstract

This article examines how knowledge co-creation takes place within the Toyota network. We extend the work of Dyer and Nobeoka, who contributed to the theory of network-level learning by showing how Toyota succeeded in ‘creating and managing a high-performance knowledge-sharing network’. By examining the role of co-operation as well as competition in an in-depth case study, our study moves beyond the concept of knowledge sharing towards a theory of knowledge co-creation with suppliers. In doing so, we propose that the duality of competitive and cooperative forces (that is, ‘co-opetition’) in a business partnership has played a hitherto neglected role in the process of knowledge creation for multi-technology innovations.

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Notes

  1. As a comparison, Volkswagen and Bosch applied for 4 , and General Motors and Delphi applied for 41 collaborative patents over the same time period. The practice of collaborative development is therefore clearly most well developed at Toyota.

  2. See Helper (1993), who first referred to Albert O. Hirschman's distinction among exit, voice and loyalty in the context of supplier relations.

  3. For example, early integration of suppliers in the R&D process may limit the number of alternative suppliers at the bidding stage, as the supplier is given the chance to influence the technical specifications. Thus, early integration may assert a lock-in effect (David, 1985) and restrict a carmaker's possibilities for creating competition among a large number of candidates.

  4. Author B prefers to refer to topics rather than questions, as the interviewee should be given the opportunity to actively influence interview course and content, thus enabling the emergence of latent concepts and ideas. As a result, Author B basically suggested topics to talk about and asked specific questions in response to what the interviewees were saying.

  5. Supplier associations exist for all Japanese OEMs except Honda, and usually include all strategic suppliers. The kyoryokukai constitutes ‘a relatively stable group, and represents the entire population of recipients of supplier development assistance of some shape or form’ (Sako, 1996, p. 302). In the case of Toyota, the current 204 member suppliers account for 80–90 per cent of its purchasing volume. However, the kyoryokukai is by no means identical with the keiretsu, although every keiretsu supplier is likely to be a member.

  6. For further information, see also Ichijo and Kohlbacher (2007, 2008) and Ichijo and Rädler (2006).

  7. See TPCA press releases from 3 and 29 March 2010, www.tpca.cz/en/media-en/press-releases.

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Authors and Affiliations

  1. Department of International Business and Management, Faculty of Economics and Business, University of Groningen, PO Box 800, Groningen, 9700 AV, The Netherlands

    Miriam M Wilhelm

  2. German Institute for Japanese Studies (DIJ) Tokyo, Jochi Kioizaka Bldg. 2F, 7-1 Kioicho, Chiyoda-ku, Tokyo, 102-0094, Japan

    Florian Kohlbacher

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Wilhelm, M., Kohlbacher, F. Co-opetition and knowledge co-creation in Japanese supplier-networks: The case of Toyota. Asian Bus Manage 10, 66–86 (2011). https://doi.org/10.1057/abm.2010.31

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