International Journal of Automotive Technology and Management (9 papers in press)
Integrated Peripheral Markets in the Auto Industries of Europe and North America
by Thomas H. Klier, James M. Rubenstein, Boleslaw Domanski, Corey Brincks
Abstract: This paper discusses the evolving geography of the motor vehicle industry in Europe and North America in the context of core-periphery relationships. Historically, the motor vehicle industries in both regions have been highly clustered in core areas. Since the late twentieth century, peripheral areas have taken on more prominence in the two regions motor vehicle industries, a trend that has accelerated in the twenty-first century. The growing importance of the periphery has given rise to the concept of the integrated peripheral market. This paper shows that Mexico and Central Europe are prominent examples of integrated peripheral areas in the motor vehicle industry. It analyzes changes in both regions production in light vehicles between 1990 and 2015. Both Mexico and Central Europe have experienced substantial increases in assembly of vehicles produced primarily for export. The rapid increase in production has occurred since integration into regional free-trade agreements with neighboring core countries.
Keywords: Auto industry; Central Europe; Mexico; integrated periphery; vehicle production; agglomeration.
Heterogeneity of the steering of foreign subsidiaries in
multinational automotive companies
by Heike Proff
Abstract: Rising environmental complexity is leading to challenges in the steering of foreign subsidiaries in multinational companies. The actual local embeddedness literature recommends that global stand-ardization and the most homogeneous steering of foreign subsidiaries possible should be subordinat-ed to the efforts of the important subsidiaries to adopt a more local orientation and to achieve more heterogeneity in steering. This paper seeks to clarify the present extent of the heterogeneity of steer-ing in multinational companies.
A literature review is carried out to find reasons for the demand for more heterogeneous steering and to identify decision principles that help in making efficient decisions. Hypotheses are made as to how far these decision principles bring about heterogeneous steering. They serve as a basis for the empirical examination of multinational German automotive companies. Contrary to expectations, the heterogeneity of steering in multinational companies is still relatively low, but a clear influence of the different decision principles on the heterogeneity of the steering was found.
Keywords: Steering; headquarter-subsidiary relationship; local embeddedness; automotive industry; multina-tional companies (MNCs); growth markets.
The automotive industry and the increasing relevance of a consumer perspective: a research agenda.
by Pietro Lanzini
Abstract: The deep transformations occurring in transports and mobility call for automakers and other actors in the automotive industry to gain further insights on the mechanisms underpinning behaviors of commuters, which represent the key-actor in determining the success or failure of any industrial initiative or public policy in the sector. The present article provides a detailed overview of the state-of-the-art of research on the determinants of car use, identifying relevant gaps of knowledge and advancing a research agenda to overcome the limitations of current studies hindering their effectiveness in providing a valuable informational background on which to build sound strategies.
Keywords: mobility; car use; meta-analysis; research agenda.
Productivity Growth, Efficiency Change and Source of Inefficiency: Evidence from the Indian Automobile Industry
by PRADIPTA SAHOO, Badri Narayan Rath
Abstract: This paper investigates the productivity growth and efficiency change of selected automobile firms using Data Envelopment Analysis (DEA) technique, particularly after the global financial crisis. The empirical findings suggest that the segments of automobile industry, i.e., passenger vehicles, commercial vehicles and two wheelers have positive productivity growth in the post financial crisis period. However, our study found that Commercial Vehicles are more efficient as compared to Passenger Vehicles and Two wheelers firms. Further, by applying DEA multistage approach to examine the sources of inefficiency, our results reveal that excess inputs in near about 50% firms are cause of inefficiency.
Keywords: Total Factor Productivity; Technical Efficiency Change; DEA; Malmquist Index; Indian Automobile.
Special Issue on: Regionalisation of the Asian Automotive Industries and Markets
RELATIONAL GOVERNANCE OF JAPANESE AUTOMOTIVE INDUSTRY: MODULARITY AND MULTIREGIONAL STRATEGIC ACTION FIELD
by Paulo César Matui
Abstract: The objective of this study was to analyze the modularity in the networks among Japanese automakers from 1998 to 2016 and its association to the dynamics of strategic action fields. This objective reflects the relational governance structure of automotive industry, and their association to the dynamics of automakers field. We identified that, where it is exposed to disturbances, the modular network hierarchy confers robustness and stability of the automakers field. The networks where built through 1628 regional ties among 124 legal entities grouped by Japan, China, Europe and USA. We divided the contractual relationships into Ownership, Alliances (Joint Ventures and Assembly Contracts) and Technology & Parts Agreements. So results calls attention about the integration/decoupling dichotomy, because the networks affects the reallocation of activities and competencies across the four regions analyzed in this study. Therefore, the paper also contributes to understand some influence of Institutional aspects to the Japanese automakers networks.
Keywords: Networks; alliances; fields; modularity; automotive industry.
- From product design to product, process and domain design capabilities of local tier 2 suppliers: lessons from case studies in Japan, Thailand and China-
by Jun Akabane, Yasuo Tsuchiya, Ryuichiro Inoue, Hajime Yamamoto, YANG Zhuang
Abstract: The approach of Banri Asanuma, who focused on product design capability and the classification of works based on supplied/approved drawings is used for evaluating the capabilities of automotive parts suppliers. However, when evaluated with Asanumas framework, most tier 2 suppliers are given the primarily low assessment that they are at the stage of working from supplied drawings. In this study, we introduce process design capability and domain design capability, in addition to the conventional product design capability, to more precisely evaluate local tier 2 suppliers in Japan, Thailand and China. As a result, Japanese suppliers demonstrate their superiority over Thai and Chinese suppliers in all three capabilities. The product design and process design capabilities of Thai and Chinese parts suppliers are still at the development stage. On the other hand, a comparison between Thailand and China reveals the trend of Thai parts suppliers being more active in domain design than Chinese suppliers.
Keywords: evolutionary paths; development of capabilities; local tier two automotive parts suppliers; Thai; China; Japan; product design capability; process design capability; domain design capability.
Strategic Upgrading of an Overseas Subsidiary through Export Promotion Activities: The Case of Kuozui Motor
by Mihail Marinov, Shinya Orihashi, Yumi Kato, Daniel Heller
Abstract: This study examines the factors that influenced the role of Kuozui Motor―Toyotas Taiwanese subsidiary―in developing products and manufacturing for third countries. Employing a case-based exploratory research approach, this study reveals how Kuozui was able to become a regional hub with deep involvement in new product development. The study finds that while this change was partially crisis-driven, the major factor that lead to the acquisition of new roles related to new product development by this Taiwanese subsidiary of Toyota was capability building, particularly in manufacturing engineering. The case of Kuozui suggests that at subsidiaries of Toyota in small to medium-sized markets, while maintaining high factory performance, moving upstream from manufacturing excellence to process design and process improvement excellence is a major step toward the assignment of new product development work for third-country markets.
Keywords: overseas subsidiaries; export; product development; strategy; manufacturing engineering; capability building; Taiwan; Toyota.
Is Indian Automobile Industry getting integrated with Asian Production Network?
by Biswajit Nag, Debdeep De, Shailendra Singh
Abstract: Globally, automobile industry is subject to fragmented production system leading to long value chain spreading across the countries. More recently, literature encompasses the issue of international trade, forward and backward linkages, collaboration in R&D, product development and differentiation, etc., leading to a new concept of International Production Network (IPN). India is now one of the major automobile producers and exporters. In this context, the paper has made an attempt to comprehend India‟s engagement in IPN and more specifically its participation in ASEAN network. It uses various trade analytic tools such as intra-industry trade, quality margin, participation index, share of foreign value added in exports, sources of foreign value addition, etc. to analyse India‟s growing competency in the sector.
Keywords: Automobile Industry; International production Network; India.
The true culprits of excessive intrabrand price competition among authorised Mercedes-Benz dealers in Thailand
by Paravee Asava-Anan
Abstract: In recent years, heavy price competition is a common phenomenon in automobile industry. The central focus of this study is an empirical study on current situation of selected brand, Mercedes-Benz, in specific market, Thailand. The study aims to understand why fierce intrabrand price competition has become the norm. The term excessive has been used to indicate that price reduction has gone beyond cost of new vehicle inventories. Systematic analysis is being conducted by utilizing well accepted academic frameworks to look at the interacting forces not only at carmaker level but also at the dealership level. This study is a serious attempt to examine the exact situation and the causes of massive intrabrand price competition.
Keywords: intrabrand price competitions; excessive price competition; competitiveness; competitive strategy; automobile dealers; authorised dealers; Mercedes-Benz; Thailand.