Productive organization in the automotive industry in south of Brazil : the relations between suppliers and buyers' compromise of governance and the creation of new competencies

Abstract

This paper aims at discussing inter-firm cooperation in supplier-buyer relations. It argues that inter-firm cooperation should contribute to the development of new competencies by learning processes, in this case learning by interacting. We develop this argument by a brief review of the academic literature and, as empirical evidences, we present the cases of four automotive companies located in the state of Rio Grande do Sul – South of Brazil. Our principal conclusion is that every supplier-buyer relationship can develop inter-firm learning processes, but it is important is to pay attention at the consequences of these processes, which can reinforce and create new competencies or only reinforce the competencies that already exist. The inter-firm learning process that only reinforce firms’ competencies makes the relationship more robust. But, at the same time, it can contribute to a sort of inertial situation where firms make more of the same and run the risk of falling in a competency trap because they do not explore other opportunities. New competencies are created when firms work together, sharing resources in a sort of inter-firm communities of practices that permits the development of uniform language, practices and knowledge.