The Evolution of Cooperative Strategies: Three Automotive Industry Case Studies

Issue title: Information Economics and Design of Organizations

Article type: Research Article

Authors: Earl, Peter E.

Affiliations: Department of Economics and Marketing, P.O. Box 84, Lincoln University, Canterbury, New Zealand

Abstract: Coalitions involving the quasi-integration of activities of rival firms come about as problem-solving devices which enable members to achieve their goals by exploiting mutual complementarities in ways that might not be possible or so cost effective if pursued by simple market exchanges or outright merger. Once in operation they tend to change the relative strength of the participants and the information that they have about each other, including information about trustworthiness and corporate capabilities. This leads to changes in the nature of the relationship and degree of intimacy between the coalition members. These themes are illustrated with reference to cooperative strategies used by General Motors, Nissan and Toyota in Australia, and the complex long-term relationship between Honda and Rover.

Keywords: Automotive business, contractual complexity, internalisation, joint ventures, quasi-integration

DOI: 10.3233/HSM-1992-11207

Journal: Human Systems Management, vol. 11, no. 2, pp. 89-100, 1992