Implementing technological and organizational innovations and management of core competencies: lessons from the automotive industry

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The paper is focused on the new features of the OEM-supplier relationship in the context of the so-called modular assembly approach, presented as a major change in the design of the vehicle and its manufacturing process, with transfer of key responsibilities to the suppliers. This is largely considered as the current unavoidable best practice in Europe and in the USA. Such evolution shows an in-depth transformation of the industrial organization, thus of the rules of the game within the whole value chain. The paper is based on an in-depth case study of the Japanese industry carried out through interviews with key decision makers and academic researchers during two visits to Japan in May and November 1999. © 2001 Inderscience Enterprises Ltd.