In recent years, there has been growing interest among academics and practitioners in improving the relationship between industrial buyers and suppliers in Korea. This is especially true in the auto industry, where supplier`s manufacturing performance...
In recent years, there has been growing interest among academics and practitioners in improving the relationship between industrial buyers and suppliers in Korea. This is especially true in the auto industry, where supplier`s manufacturing performance influences the quality of the automobiles assembled by motor companies. The results of this study provide some important implications for managers of both buyers and suppliers of the Korean auto industry. In this study it is found that trust and cooperation are very important to achieve manufacturing performance of suppliers. In addition, JIT supply is identified as very important in improving the manufacturing performance of suppliers. Generally, JIT practices require cooperation and trust between suppliers and buyers. Thus, of all supply practices, trust and cooperation are most critical to improve supplier`s performances. In conclusion, JITII would be the best supply practices because it includes not only JIT supply practices but also inter-organizational information sharing practices based on trust and cooperation.