Trust and the cultivation of relation-specific skills. Evidence from a multinational automotive supplier in Japan and Germany
Saeki, Y., & Horak, S. (2014). Trust and the
cultivation of relation-specific skills. Evidence from a multinational
automotive supplier in Japan and Germany. Management Decision, 52(8), 1433-1450.
DOI: 10.1108/MD-09-2013-0460
Link: https://doi.org/10.1108/MD-09-2013-0460
Abstract
Purpose - This study draws on Asanuma’s concept of relation-specific skills in
order to analyse collaboration between automaker and supplier. The cultivation
of relation-specific skills has been widely regarded a key factor of
competitiveness in the Japanese automotive industry. Yet, the concept has been
described mostly in economic terms only. This research attempts to extend this
view by analysing the role of informal institutions (trust) in developing
relation-specific skills.
Design/ methodology/ approach - By drawing on expert interview data, evaluated
by using content analysis, within the frame of a case study research approach,
we gathered data from the leading multinational automotive supplier Bosch in its
facilities in Japan and Germany.
Findings - The results show that the influence of trust plays a role in
determining relation-specific skills. In conclusion, we assume that cultural
homophily positively influences the cultivation of relation-specific skills and
recommend future research to take this assumption into account.
Practical implications – Findings imply that over the course of business
transactions organizational structures hardly converge leading to higher
transaction cost. Moreover, Keiretsu structures are still strong in the field of
automotive electronics.
Originality – So far the concept of relation-specific skills has been regarded a
“culture-free” concept. Our results provide a first indication that cultural
differences affect the cultivation of relation-specific skill, and thus need to
be considered integral to the concept.
Keywords
Banri Asanuma, relation-specific skills, cultural homophily, trust, automotive
industry, supplier-maker relation.