Supplier Networks at the Integrated Peripheries of the Automobile Industry: The Case of Keiretsu Suppliers in Thailand

Abstract

The formation of supplier networks at the integrated peripheries is a complex process and results from variegated strategies adopted by firms seeking to adapt to the specificities of each host state. This study aims to provide a preliminary explanation of these patterns by focusing on the case of tier 1 suppliers serving Japanese car manufacturers in Thailand. The empirical data, which capture supply relationships for five different car parts and components, were analysed using a network visualization method. Our initial findings provide insights into how the supply networks vary across car manufacturers and countries and suggest some of the conditions at the integrated peripheries which can enable suppliers to expand their client portfolio to gain scale. The paper also discusses how the integrated periphery framework intersects with the keiretsu networks of Japanese car manufacturers.