Abstract
One of the most characteristic features of the Korean automobile industry is the adversarial, power-based relationship between the assemblers and suppliers. Under this circumstance, the assemblers increasingly integrate their subcontractors into their overall production process in order to survive severe competition on the global market. Hence, automobile manufacturers have introduced new ruling strategies to generate technological development for the subcontracting parts manufacturers. From this standpoint, my paper will describe in detail the inter-firm relationships between the vehicle assemblers and the component suppliers in terms of product and process technology development.
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