Research On Choosing Production Organization Model For Automobile Company And The Governance Mechanism Of Strategic Partnership Between The Automobile Company And The Supplier

Throughout the world auto industry development history, it has gone through four key stages:piece production, mass production, lean production and global manufacturing. The rapid development of auto industry was accompanied by the rapid development of science and technology popularization and application and also the gradual Deepening of the division and specialization. Only if their core strengths were integrated into a resultant force, they would be able to rise to the occasion, seize the opportunity and keep the core advantage.My article began with establishing a strategic partnership and opportunism among the strategic partnership. And then, the importance of strategic partnership governance was introduced. In this article, three types of the production organization model had been introduced:full integration, integration and pure marketization. By citing the integration theory, we summarized several factors which impacted integration, and then, combined with the auto industry characteristics, some factors based on auto industry and the integration model had been put forward to give a basis for choosing production organization model. At last, combined with these characteristics of the automobile company and the key supplier, the contractual governance mechanism and the relational governance mechanism were put forward.The article concludes two basic conclusions:(1) The importance degrees of auto parts decide which production organization model should be selected.(2) Contractual governance mechanism combined with relational governance mechanism should be considered as the theoretical foundation for establishing a strategic partnership.Generally speaking, core parts fit integrated production organization mode, common parts fit the market’s production organization mode and the key parts fit the hybrid production organization modes, meanwhile, the strategic partnership between the automobile company and the key supplier should be established. That core businesses are done by yourself and non-core businesses are done by others not only extremely save resources but also effectively cultivate the core competence. The strategic partnership between the automobile company and the key supplier should be established and the contractual governance mechanism combined with relational governance mechanism ought to be adopted. It can not only ensure supply but also realize advantageous complementarities, share risks, and quickly respond to markets. This article point out the developing direction for the automobile company because two essential questions are answered:how to deal with business outsourcing and how to govern the strategic partnership.