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Manufacturing PossibilitiesCreative Action and Industrial Recomposition in the United States, Germany, and Japan$
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Gary Herrigel

Print publication date: 2010

Print ISBN-13: 9780199557738

Published to Oxford Scholarship Online: September 2010

DOI: 10.1093/acprof:oso/9780199557738.001.0001

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Coping with Vertical Disintegration: Customer–Supplier Relations and Producer Strategies in Complex Manufacturing Supply Chains

Coping with Vertical Disintegration: Customer–Supplier Relations and Producer Strategies in Complex Manufacturing Supply Chains

Chapter:
(p.141) 4 Coping with Vertical Disintegration: Customer–Supplier Relations and Producer Strategies in Complex Manufacturing Supply Chains
Source:
Manufacturing Possibilities
Author(s):

Gary Herrigel (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199557738.003.0005

Chapter introduces the problem of vertical disintegration, outlining the basic competitive dynamics that give rise to it. A five fold typology of supplier-customer relations is presented: arms length, captured, modular, relational contracts and sustained contingent collaboration. Sustained contingent collaboration is the modal relation in the current historical environment. The range of supplier strategies and public policies that are emerging to cope with sustained contingent collaboration are extensively discussed.

Keywords:   vertical disintegration, markets, collaboration, modularity, relational contracts, sustained contingent collaboration, diversification, customer-supplier relations, role ambiguity

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