The objective of the article is to shed light on the importance of vertical partnership chain governance. The empirical research rests on a case study about an aero-engine. Original Equipment Manufacturer which had to reinvent the governance of its buyer-supplier relationships after a complete repositioning of its business model on services management....The case study reveals that, in a context of heavy dependence on external partners and supply chain management imperfections, new organization and governance modes turn out to be necessary. Those should not only moderate the negative and counter productive effects of poor buyer-seller relationships but create and sustain a competitve advantage throught the extablishment of an effectrive vertical partnership governance structure.
DONADA, C., NOGATCHEWSKY, G. and NOGATCHEWSKY, S. (2008). Why Vertical Partneships Are Keystones? An Illustration From the Civil Aerospace Industry. In: Proceedings of Academy of Innovation and entrepreneuship 2008. Intellectual Property Publishing House, pp. 226-229.