Date Approved

2005

Degree Type

Open Access Thesis

Degree Name

Master of Arts (MA)

Department

Economics

Committee Member

John Edgren, PhD, Committee Chair

Committee Member

John W. Henke Jr., PhD

Committee Member

Sharon Erenburg, PhD

Abstract

Do the different approaches automotive Original Equipment Manufacturers (OEMs) take to working relations with their suppliers affect economic variables that impact bottom line results? This study is focused on exploring this question through four hypotheses:

1. Cooperative-trusting relationships lead to reduced costs of sourced materials and overhead.

2. Cooperative-trusting relationships lead to increased levels of innovation with a lower investment in research and development.

3. Cooperative-trusting relationships lead to improved product quality.

4. Cooperative-trusting relationships lead to better resource management of inventory.

Statistical Analysis Software (SAS) was used to perform regression analyses on panel series data. All four hypotheses were proven to a statistical significance of at least 0.10. These results provide the empirical data necessary to substantiate the anecdotal evidence that cooperative-trusting supplier relationships provide economic value. The working relationships automotive OEMs have with their suppliers affect economic variables that impact bottom line results and competitive advantage.

Included in

Economics Commons

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