Abstract
Research into supplier development has raised issues on the buyer’s relationship with the supplier. A buyer with collaborative relationship would have more interest in supplier development. From the viewpoint of the suppliers, buyers who provided assistance could help the suppliers in developing their capability, a situation that might be particularly relevant in developing and emerging countries. The automotive manufacturers have implemented supplier development programmes for their suppliers, both in developed and developing countries. This raises a question on supplier development programmes in developing countries: How do supplier development programmes differ between a local (Malaysian) supplier and a foreign (non-Malaysian) supplier for Malaysian automakers (buyers)? In this research, interviews were conducted at three supplier organisations, of which one was Australian and two were Malaysian, where all three were suppliers for a Malaysian automaker. This study found that the Malaysian and Australian suppliers differed in supplier categories, customisation versus standardised products and buyer involvement. The study suggests that buyer differences with regard to supplier relationship, supplier commitment, type of product and size of supplier organisation play a role in supplier development.
Highlights
Countries such as South Korea and Malaysia embarked on national automotive policies designed to improve the automotive parts production by local suppliers with national automakers having an input in the growth and development of local suppliers (Wad, 2008)
As the Australian supplier was supplying parts through its Malaysian subsidiary to the LA, the assumption here is that the Australian supplier or its Malaysian subsidiary was not involved in the LA supplier development programme as the programme focuses on Malaysian companies
For the Australian suppliers, the approach was more towards American and/or European production systems. This was in contrast with the Japanese production systems’ influence in the supplier development programme approach of the Malaysian suppliers. Though this might be related to the history of where the supplier organisations were established (Australia versus Malaysia), many of the same global automotive organisations could be found in both countries, but the number of automotive manufacturing plants might differ
Summary
Countries such as South Korea and Malaysia embarked on national automotive policies designed to improve the automotive parts production by local suppliers with national automakers having an input in the growth and development of local suppliers (Wad, 2008). Liker (2004) and Liker and Meier (2007) focused their studies on the extensive training that Toyota implements within the firm, as well as the aspect of the sharing of information and building of trust between supplier and automaker This suggests that some automakers, through focusing on collaborative relationship, are more often open to supplier development. An initial study of a larger project was implemented wherein the objective was to find the similarities and differences between supplier development programmes among local suppliers and foreign suppliers of Malaysian automakers. Two were Malaysian suppliers and one was an Australian supplier
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
