International Journal of Automotive Technology and Management (8 papers in press)
New Business Model and the Sharing Economy: Impacts and Challenges for the Traditional Automotive Industry.
by Eduardo L. Lasmar Junior, Rodrigo Gandia, Joel Sugano, Thais Souza, Demosténes Rodriguez
Abstract: The outstanding features of a vehicle do not include great modifications for nearly 100 years, as the same to the major car manufacturers' Business Models (BM). Recent services platforms related to urban mobility use, mostly, the sharing economy, resulting in disruptive innovations. These offer to the users new experiences in services (e.g. Uber) which provides the vehicles use without the onus of ownership. From this perspective, this paper qualitatively evaluates the modifications in the automakers BMs standards based on strategies and innovations of the new businesses of the main groups of automotive manufacturers. As a result, we observed that traditional products-based automakers are already moving towards to fit in the new BM, which are impacted by the sharing economy. Finally, we proposed a framework based on an unbundled model operating synergistically in three types (customer relationship management, product/service innovation and infrastructure management).
Keywords: Business Model; Automakers; Sharing Economy; Disruptive Innovation.
The concept supply chain technological capability in case of new product development process
by Shahab Eshraqi, Shahin Eshraqi
Abstract: In some industries such as automotive, the supply chain plays a critical role in the firm success. In these industries, the unit of competition has changed to supply chain vs. supply chain. Accordingly, the aim of this paper is to develop the concept supply chain technological capability (TC) in the new product development (NPD) process. We explored the concept TC in the supply chain level, which are different from the firm level.
In this paper, we studied last three NPD projects of the IKCO (the largest Iranian manufacturer), from year 2000 to 2015 by focusing on the supply chain coordinator organization of IKCO enterprise, SAPCO.
The results show firm managers are called upon to resolve the tension between supply chain TC and innovation through a NPD project and creating the right context to stimulate individuals to solve problems and to be accountable for their objectives.
Keywords: supply chain management; technological capability; new product development.
Closed-Open Innovation Strategy for Autonomous Vehicle Development
by Marlous Blankesteijn, Frank de Jong, Bart Bossink
Abstract: The automobile industry is faced with societal and market pressures to develop radically innovative cars for the future. The development of the autonomous vehicle (AV) is a strategic innovation in this area. This paper studies whether and how AV-innovation strategies at Tesla, BMW and Toyota are developed by using an open and/or closed innovation paradigm. More than ever, it appears that R&D departments of car manufacturers employ a combination of a closed and an open innovation strategy. In order to nurture their AV innovation strategy, they strategically decide which innovations to adopt from outside and which parts of the R&D process to keep in-house. This paper presents and discusses the combined closed-open AV-innovation strategies used by three dominant car producers. It provides an insight in how they aim to gain a first-to-market position and sustainable competitive advantage in a new market segment of a highly saturated market.
Keywords: autonomous vehicles; open innovation; R&D management; automotive industry
Special Issue on: Regionalisation of the Asian Automotive Industries and Markets
Examining the Realignment Strategies of Automobile Production Bases in Southeast Asia:The Case of Japanese Automakers
by Hiromi Shioji
Abstract: Japanese carmakers have by far the highest production and sales volumes
in ASEAN countries. However, the current trend of economic integration in this
region will have deep effects on the competitive patterns and geographic distribution
of production. This research inquires this topic, and more specifically examines the
realignment strategies of production bases of Japanese automakers in ASEAN
countries. In order to examine the realignment strategies of production bases, the
productive strategies defined in this paper is based on the assessment of two
variables: first, the geographic distribution of Japanese carmakers factories in
ASEAN. Second, the specialization of production in each country/factory. This
approach allows us to consider several scenarios regarding the combinations of the
redistribution of production in the coming years, and to asses each scenarios
feasibility, strengths and weaknesses. Our main findings are as follows: first,
Japanese automakers are recommended to consider pattern WX in the second half of
the 2010s, in order to enhance their competitive advantage by focusing on
competitive models and introducing new models in countries A and B (namely
Thailand and Indonesia). At the same time, countries C, D, and E (namely Malaysia,
the Philippines, and Vietnam) should focus only on one model in each countrys
production base and concentrate all of the production volume for the ASEAN or
global market to one countrys production base. Moreover, they should consider the
model adaptation strategy in line with the automobile development policy of each
government. Second, in the second half of the 2020s, it might be possible for
automakers to adopt pattern WX because automobile markets would expand in each
country and automakers could produce the model for the domestic market.
Keywords: ASEAN automobile market; Trade liberalization; Incentives by ASEAN
governments; Realignment strategies of production base; Japanese automobile
Growth strategy from the suppliers view point. -A case study of Denso and Hitachi Automotive Systems-
by Jaeho Lee
Abstract: In a period when global suppliers play a key role in
technological innovations across several fields of the
automotive industry and in the formation of global value
chains, it is necessary to assess their approaches to innovation
and their specific design and organizational capabilities. This
paper aims to examine and compare the growth strategies of
two Japanese mega suppliers involved in research and design
of automatic braking systems, and to assess their impact on
inter-firm relations and transactions. The case study approach
of this paper is based on in-depth interviews and archive
analysis, and draws a comparison between Densos wide
customer scope strategy and Hitachi Automotive Systems
wide product portfolio strategy. In order to analyze the
relevance of these two approaches, we use the Growth
Strategy Cup Framework, which consists of three parameters:
customers, products, and core competences. Our findings
show that Denso was successful in terms of economies of
customer scope, while Hitachi Automotive Systems was more
dynamic in new combination-oriented innovation. In addition,
our paper discusses why Hitachi Automotive Systems
managed to develop an automatic braking system faster than
the Toyota Group. An underlying reason for Densos inability
to develop a complete automatic braking system as quickly as
Hitachi Automotive Systems lies in the fact that, as part of the
Toyota Group, Denso was assigned a specific and limited role
in this innovation process.
Keywords: growth strategy; regional strategy; supplier’s view point; Denso; Hitachi Automotive Systems; Growth Strategy Cup Framework; scope of customer; scope of product; core competence; automatic brake system.
Regional Economic Integration and the Automobile Industry: Automobile Policies, Division of Labour, Production Network Formation and Market Development in the EU and ASEAN
by Holger Bungsche
Abstract: The paper compares regional integration of the
automobile industries of the European Union (EU) and the
Association of Southeast Asian Nations (ASEAN).
Comparing automobile policies and automobile industry
development in the EU and ASEAN, the paper is specifically
focusing on issues related to the division of labor, the
formation of production networks as well as tendencies in
intra- and external regional trade. Finally, recent
developments in automobile production and automobile
markets, levels of motorization, as well as wages and
purchasing power in both world regions show the very
different development paths of the automobile industries and
the different approach to regional economic integration.
However, both the liberal market integration approach
traditionally applied by the EU as well as the approach of
ASEAN to strengthen domestic industry development by
pursuing export-oriented strategies are facing considerable
challenges in a rapidly changing automobile industry
Keywords: EU; ASEAN; international trade; division of
labor; production networks; automobile industry ASEAN,
automobile industry Japan; automobile policies in Asia.
Product Innovation in Emerging Economies: Product Architecture and Organizational Capabilities in Geely and Tata
by Giovanni Balcet, Hua William Wang, Chris Kimble
Abstract: The aim of this paper is to provide a perspective on the sources of innovation that underlie the creation of low-cost products in emerging economies. It differs from previous analyses in its emphasis on the influence that country specific factors can have, opening the possibility that similar firms, with similar products and similar goals may follow fundamentally different trajectories. It presents two case studies from the automobile industry in China and India, Geely and Tata, that show precisely this phenomenon. Building on its capability for flexibility and responsiveness, and the existence of a loosely-coupled network of suppliers, Geely took a quasi-open approach to the product architecture for its vehicles. Tata on the other hand followed a broadly closed integral approach to product architecture, building on its vertically integrated structure and tradition of frugal innovation. Based on these case studies, existing theory concerning the co-evolution of product architecture and organizational capabilities, and using a process of abductive reasoning, we present a framework that can be used to explain this divergence. The framework highlights the interactions between a product's architecture, a firm's organizational capabilities, and country specific external factors such as institutions, industry, markets, and technology.
Keywords: Sustainable supply chain management; Marketing management; Sustainable Labels; Barriers; Stakeholders.
Special Issue on: Regionalization of the Asian Automotive Industries and Markets
Production networks of the Asian automobile industry: Regional or global?
by Bruno Jetin
Abstract: Asia is the host of some of the largest automobile markets and top global brands. It has recently taken several initiatives to foster its regional integration, such as Asia-wide trade agreements and infrastructure projects. This article examines the impact of these initiatives on the automobile fragmented production networks of Northeast, Southeast Asia and South Asia to see if they are becoming more regionalised or globalised and to see if an Asia-wide production network is emerging. We focus on automobile component trade as a proxy of network trade and follow its evolution over the period 2001-2016 at the Asian and subregional level, with a special emphasis on two major players, China and Japan. Our results show that a regionalisation process is under way between the three subregions, driven by China and Japan. However, this process is still slow due to the persistence of a high level of protectionism between the three subregions.rn
Keywords: Automobile; fragmented production network; network trade; regionalisation; globalisation; Asia; Northeast Asia; ASEAN; South Asia.