Modularity and Relational Mechanisms of Governance: An Analysis of Modular Consortium and Industrial Condominium
DOI:
https://doi.org/10.12660/joscmv6n1p74-90Keywords:
inter-firm governance, relational mechanisms, Brazilian automotive industry, modular consortium, industrialAbstract
This article analyzed the main mechanisms in inter-firm governance present in a modular
consortium as well as in an automotive industry industrial condominium, operating in Brazil.. The data
collection was carried out through interviews (in loco) in both automakers and suppliers. Modular
consortium and industrial condominium not only involve collaborative agreements in manufacturing
with suppliers but also embrace managerial aspects such as: trust, long-term contracts, reciprocity,
reputation, channels of interdependence and formal and informal mechanisms of control. These
contemporary forms of governance have generated new ways of organizing production and coordination
in operations, based on cooperation, integration and inter-firm process control. For such, governance
based on company inter-relationship usually operates seeking cooperative agreements so that it would
permit quick access to information and technological innovations. These governance approaches
contain structures to support exchange, resource interdependence, mutual lines of communication,
economies of scale for research and joint production.
DOI: 10.12660/joscmv6n1p74-90
URL: http://dx.doi.org/10.12660/joscmv6n1p74-90
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