COST, QUALITY, AND LEARNING BASED GOVERNANCE OF BUYER-SUPPLIER RELATIONS

In the past, many authors have reported fundamental differences in practices of outsourcing by firms in the West (US, EU) and Japan, mostly on the basis of studies in the auto industry. While in some respects European practice is somewhat closer to Japanese practice, it remains more similar to American practice. The past success of Japanese industry appears to be due to some, perhaps considerable, extent to their subcontracting relations (Helper 1991; Helper and Levine 1992; Dyer and Ouchi 1993; Cusumano and Fujimoto 1991; Dore 1989; Womack et al. 1990; Lamming 1993).