- Volume 12 Issue 4
This study examines the differences of enacting models and influential causes of benefit-sharing practices between Korean automobile networks and the Japanese networks. The case study method is chosen for this research because only small numbers of supply networks adopt benefit-sharing practices. I employ semi-structured interviews with managers from four automobile manufacturers and eight of their suppliers in South Korea and Japan. I find that Japanese automobile networks have adopted a higher level of trust-demanding, with a higher level of value-creating models such as supplier development, joint-new-product development. Whereas, the Korean networks have adopted the lower trust demanding, also less profitable models such as supplier's suggestion and buyer's suggestion. In terms of work-related cultural values, I find that Japanese networks emphasized collectivism. Both buyers and suppliers in the Japanese networks are supposed to have common causes. In contrast, Korean networks emphasized individualism. Both buyers and suppliers of Korea generally do not identify that they are common group members with a common cause. I also find that a slight differences of the enacting models and the causes between foreign-owned networks and domestic-owned networks within each country. Foreign-owned networks have adopted lower trust demanding, also less profitable models. The findings demonstrate that the cultural values have a decisive influence on the adoption of benefit sharing models for the networks in Japan, and South Korea.
Supported by : 덕성여자대학교