Buyer strategies to maintain suppliers in development-intensive supply chains

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Abstract/Contents

Abstract
The semiconductor equipment, aerospace, and defense industries are becoming ever more consolidated in today's globalized industrial scene: a few market-dominating buyers work with an ever-decreasing number of major suppliers for reasons including industry maturity, demand consolidation, and increasing capital intensity. All giant buyers such as Intel, Apple, Boeing, and the U.S. Department of Defense not only have to obtain critical equipment from a single supplier or a small number of suppliers but are also concerned about procurement decisions that may ultimately affect suppliers' incentives to perform R& D and stay in business. My dissertation research formulates and analyzes stylized game-theoretic models composed of two suppliers of different priority tiers, a preferred focal supplier and a partner supplier less preferred by the buyer. These two suppliers develop a product subject to financial pressures, and supply a powerful buyer who can influence their finances as well as development capabilities. I demonstrate the viability of several strategies for the buyer: (1) egalitarian value allocation schemes in the face of relationship decline, (2) commitment to develop partner suppliers against increased supplier asymmetry, and (3) commitment to competitive price targets and value-sharing to induce supplier collaboration.

Description

Type of resource text
Form electronic; electronic resource; remote
Extent 1 online resource.
Publication date 2015
Issuance monographic
Language English

Creators/Contributors

Associated with Usta, Mericcan
Associated with Stanford University, Department of Management Science and Engineering.
Primary advisor Erhun, Feryal
Primary advisor Hausman, Warren H
Thesis advisor Erhun, Feryal
Thesis advisor Hausman, Warren H
Thesis advisor Lee, Hau Leung
Advisor Lee, Hau Leung

Subjects

Genre Theses

Bibliographic information

Statement of responsibility Mericcan Usta.
Note Submitted to the Department of Management Science and Engineering.
Thesis Thesis (Ph.D.)--Stanford University, 2015.
Location electronic resource

Access conditions

Copyright
© 2015 by Mericcan Usta
License
This work is licensed under a Creative Commons Attribution Non Commercial 3.0 Unported license (CC BY-NC).

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