The South East Asian Journal of Management
Vol. 16, No. 2

Vertical Partnerships Between OEM And First Tier: Lessons From Automotive Component Companies In Greater Jakarta-Indonesia

Syah, Donny Oktavian (Unknown)
Lupiyoadi, Rambat (Unknown)
Suryani, Embun (Unknown)



Article Info

Publish Date
29 Oct 2022

Abstract

Research Aims: This research aimed to investigate vertical partnerships between Original Equipment Manufacturers (OEMs) and first-tier automotive component firms based on the relationships between technology transfer, technical exchange, government role and supplier performance in the Greater Jakarta area. Design/Methodology/Approach: A total of 65 respondent firms participated, comprising 6 OEMs and 59 first-tier firms. The research included site visits and interviews with companies based on questionnaires completed by representative individuals from middle management upward with responsibility for assessing product quality (purposive sampling). The questionnaire results were measured using Partial Least Squares Path Modelling (PLS-PM). Research Findings: The results highlighted significant relationships between government role and technology transfer (p-value = 0.00), government role and supplier performance improvement (p-value = 0.017), and technical exchange and supplier performance improvement (p-value = 0.077). However, no significant relationship was found between technology transfer and supplier performance improvement (p-value = 0.353). Theoretical Contribution/Originality: Understanding the vertical relations between OEMs and first-tier automotive component firms in Indonesia. Managerial Implications in the South East Asian Context: Solid relationships between OEMs and first-tier companies in Greater Jakarta, Indonesia are especially triggered by the increasing tendency for local component use (TKDN/Domestic Component Level). Research limitation & Implications: The research examined vertical relationships between OEMs and first-tier firms, notably between technology transfer and supplier performance improvement, technical exchange and supplier performance improvement, government role and technology transfer, and government and supplier performance improvement.

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Journal Info

Abbrev

publication:seam

Publisher

Subject

Description

The South East Asian Journal of Management (The SEAM) seeks to publish high quality, scholarly empirical research articles in management, strategic management, organization, entrepreneurship, operations management, human resource management, business and organization topics that test, extend, or ...