The Dynamics of the Toyota-Astra Hybrid Structure Partnership

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Lionel Priyadi
Yoshi Takahashi


This paper uses the Toyota-Astra partnership in the Indonesian automotive sector as a case study to understand changes in the boundaries of hybrid arrangements. Using Menard’s typology of hybrid arrangements, we identify the partnership’s initial arrangement as a quasi-strategic center with the Japanese partners holding full control over strategic decisions regarding production. Later, this arrangement changed to an information-based network following the separation of assembly operations from the partnership. Despite this change, Astra’s relationship with Toyota’s suppliers continues to function under a quasi-strategic center arrangement with a slight adjustment in the allocation of decision rights over production in order to accommodate Astra’s growing internal capabilities in component manufacturing. Moreover, this change was followed by the adoption of new relational contracts that made the supplier system resemble more closely to Toyota’s original system in Japan.


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