ABSTRACT
This chapter explores the reasons behind the differential impact of the nature of supplier relations on supplier performance in different regions. It examines the survey evidence on the changing nature of supplier relations practices, and discusses the factors which explain why some suppliers have come to forge 'voice' relations while others have not. The several surveys show that there has been a considerable convergence in the methods of supplier relations towards closer and longer-term relationships in Europe, the USA and Japan. The European automotive industry has experienced dramatic changes in its supply structure. The chapter investigates the linkages between the nature of supplier relations and performance. The product characteristics may be more an outcome of voice relationships than determinants of the voice/exit choice. The chapter also examines the hypothesis that voice relationships are more likely between customers and suppliers with relatively high switching costs.
