Change in supply networks: a case study in the automotive components industry

Abstract

Purpose

The purpose of this paper is to analyze the evolution of a supply network and the causes of network change and stability. It presents the study of a supply network of Delphi Braga (Portugal), one of the largest European plants producing car-radios, navigation system and other related products, in order to understand how it changed over time. The paper contributes to the understanding of network management.

Design/methodology/approach

The case study was carried out on a network of five suppliers of Delphi Braga adopting a relational view of networks meaning that both parties of the relationships were studied. Data and results are based on document sources and interviews with managers both from Delphi and the studied suppliers.

Findings

The causes of network change and stability are both exogenous and endogenous. They are multiple and have different impacts on network structures and processes. The paper analyses several causes of network change and their impact on the studied supplier network.

Research limitations/implications

The research is based on a single case study. Although the studied supplier network comprises several firms, it should be pointed out that each network has its own dynamics and structures. Therefore, though the paper makes a relevant contribution for network management, the results cannot be generalized for other networks and firms.

Practical implications

Managers should be aware of the dynamics of their supplier networks and understand the different impacts of both their firm’s decisions as well as the environment changes. By doing this, managers can anticipate changes in the structure and dynamics of their supplier networks.

Originality/value

This case study contributes to our current understanding of relationship development both at the dyadic and network level by analyzing the case of a supply network in a major European plant of car-radios and navigation systems. It discusses implications and proposes further research to advance knowledge on the topic of network change.

Citation

Eiriz, V. and Carreiras, J. (2018), "Change in supply networks: a case study in the automotive components industry", Management Decision, Vol. 56 No. 4, pp. 922-936. https://doi.org/10.1108/MD-03-2017-0219