Combining Product Development and Production Processes for Effective Interorganizational Collaboration and Governance Case Analysis of a Korean Car Company

As hybridization of the Japanese and US types of cooperation in the automobile industry advances, the unified perspective proposes that transaction cost, resource-based and embeddedness theories be unified to expound on the present state of interorganizational cooperation. The unified perspective argues that determinants in product development and production processes are similar. However, through a case analysis of Hyundai motors company, this research will articulate how types of interorganizational cooperation between product development and production are different and how heterogenous collaboration processes and transaction governance in product development and production should be combined to obtain competitiveness. The results of the case analysis are as follows. Firstly, this study clarifies that there are distinct combinations of interorganizational transaction governance and collaboration in product development and production processes. Secondly, factors such as transaction costs and resources affect collaboration and transaction governance in product development and production processes differently. While the acquisition of resources and administration are the major factors that influence the formation of collaboration in product development processes, the reduction of production costs and administration of transaction governance are the factors that lead to the formation of collaboration in production.