Inter-organizational collaboration and value creation in the automotive industry

In response to the difficulties experienced by the automotive industry in adopting new procurement technology this research investigates an emerging phenomenon: electronic interorganizational collaborative platforms consisting of e-Hubs, WebEDI, and CAD networks. A study of eight European cases explores collaborative working and information sharing using e-procurement to transform value creation. Outcomes from interviews and workshops reveal conflicting stakeholder motivation and barriers at firm and industry level. Vehicle manufacturers seek significant cost reductions through large-scale hubs, but are overwhelmed by supplier resistance, structural differences, cultural mismatch, and legacy systems. Suppliers are more selective in their use of electronic applications, but are hindered by network complexity, lack of standards, and limited resources. The study concludes with recommendations concerning electronic topology, supplier relationships, disbenefit, leadership, and a transition from traditional inter-organizational systems thinking.