Management control of supplier relationships in manufacturing: a case study in the automotive industry

摘要

This paper studies management control design of supplier relationships in manufacturing, a supply chainphase currently under-explored. Compared to supplier relations during procurement and R&D, whichresearch found to be governed by a combination of formal and informal controls, supplier relations inmanufacturing are more formal, so that they could be governed by more formal and less informal controls.To refine the management control system and influencing contingencies, we propose a theoretical frameworkspecifically adapted for the manufacturing stage. This framework is investigated by an in depth case study ofthe supplier management control of a Volvo Cars production facility. We identify three types of suppliersvisualizing the associations in the framework and illustrating the framework’s explicative power in(automotive) manufacturing. Furthermore, the case contradicts that supplier relations in the manufacturingphase are governed by little informal control, because the automaker highly values the role of trust buildingand social pressure. Most notably, a structured supplier team functions as a clan and establishes informalcontrol among participating suppliers, which strengthens the automaker’s control on dyadic supplierrelations.