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- W2501335118 abstract "The transition from shortage to surplus sent shock waves through the sectors and up and down the commodity chains. As their cashflow problems worsened, large enterprises started to look for ways to reduce costs. They could not lay off workers, because they were state-owned enterprises (SOEs), and their own profits had disappeared quickly as they cut prices to stay competitive. So they started to look for ways to eat into the profits of their subcontractors. The first sign of trouble was smaller orders, but before long, the SOEs started switching to cheaper suppliers, as well. Developing new suppliers can be arduous and time-consuming, however, and frequently it proved easier to use the threat of switching suppliers to impose more favorable terms on existing ones. The practice of “one part, two factories” took on new significance when the SOEs realized that reduced orders could be shifted between multiple, duplicate, and dependent subcontractors. The resulting competition was very intense—”if you do not supply [gonghuo], then someone else will” (A18)—and for the first time subcontractors were compelled to compete with one another not only in terms of quality, but in terms of price, payment, and delivery, as well.1" @default.
- W2501335118 created "2016-08-23" @default.
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- W2501335118 date "2012-01-01" @default.
- W2501335118 modified "2023-09-23" @default.
- W2501335118 title "The Nexus Unravels" @default.
- W2501335118 doi "https://doi.org/10.1057/9781137074072_5" @default.
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