抄録
In terms of business strategies among global automotive suppliers, it is generally thought that the earlier a
supplier becomes involved in OEMs’ advanced development phase, the greater the possibility of that supplier
being selected as a mass production supplier. While the use of this strategy can lead to increased profits and
company growth, it is absolutely inappropriate in transacting with local Chinese OEMs （COEMs）. This is
because with COEMs, the advanced development phase is typically outsourced to independent engineering
companies, thus eliminating the need for supplier involvement in that phase. Despite such market constraints,
Japanese suppliers are aggressive about approaching COEMs as strategic cooperation partners. This paper
takes up the case study of Denso China, and examines transactions between Denso and COEMs, from the
advanced development phase to mass production; this is done to determine how transaction governance
contributes to reduced costs and improved quality, and to mitigating opportunism.
