The article discusses how major U.S. and Japanese automobile manufacturers manage their relationships with suppliers. They found that these firms use various types of relationships, not just strategic partnerships. Each type of relationship can be well or poorly managed, depending on the specific conditions. Contrary to popular belief, Japanese firms do not rely heavily on strategic partnerships but also use market-exchange relationships. By matching the type of relationship to the external context, firms can avoid the trend of strategic partnerships and effectively manage their supplier relationships.