Corresponding Author

Seungchul Kim, College of Business Admin., Hanyang University, Korea;

Document Type



As competition becomes more intense, it is becoming increasingly important for a firm to build an efficient supply chain for its survival and prosperity. One way to build an efficient supply chain is to integrate the supply chain activities by the member firms of different levels on the supply chain by developing cooperative relationships between firms.

Many factors are involved in developing cooperative relationships between firms, and their effects need to be studied. This paper investigates what factors are critical to build a cooperative buyer-supplier relationship in auto parts manufacturing industry.

Data was collected from two groups of firms in Korean auto parts manufacturing industry, 1st-tier parts suppliers and 2nd-tier parts suppliers. Our study reveals that there are significant differences in the way of collaboration depending on the level of the relationships.