Buyer‐supplier relations in the UK ‐ automotive industry: Strategic implications of the Japanese manufacturing model

This paper documents the adoption of the Japanese model of manufacturing in the U.K. motor industry and argues that the structure of the UK vehicle industry presents severe obstacles to the successful use of Japanese methods.

Abstract

Abstract This paper documents the adoption of the Japanese model of manufacturing in the U.K. motor industry. Internal developments by the vehicle assemblers and their suppliers are examined. It is argued that the Japanese model involves very high intra‐ and interorganizational dependencies. Although this does not cause problems in Japan due to the structure of the Japanese motor industry, the structure of the UK vehicle industry presents severe obstacles to the successful use of Japanese methods. Pursuit of the pure Japanese model within the existing industry structure appears to be fraught with problems. Moreover, such an exercise risks sweeping away potential strengths of the existing structure.