International Journal of Automotive Technology and Management (14 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.
Patterns of Knowledge Development and Diffusion in the Global Autonomous Vehicle Technological Innovation System: A Patent-based Analysis
by Donghui Meng, Xianjun Li, Yongfeng Cai, Jiaxin Shi
Abstract: This study focuses on assessing the knowledge development and diffusion functions of the global autonomous vehicle (AV) technological innovation system (TIS). To that end, this study uses patent portfolio analysis. A comprehensive and dynamic picture is depicted through our evolutionary analysis covering 5,986 AV patents applied for from 1997 to 2016 worldwide, which were assigned to seven relevant sectors (Automotive, Machinery, Aircraft/Defence, Electronics, Information/Software Service, Mobility/Logistics Service, and Research) and focused on five key technology categories (Control and Actuation, Perception and Localization, Computation, Communication, and System Integration). Three key findings from our study are: 1) sectors differ in terms of the amount of knowledge they developed and the distribution of knowledge across technology categories; 2) different sectors and technology categories have uneven roles in the global knowledge diffusion network; and 3) knowledge development and diffusion patterns exhibit significant evolutionary tendencies. Our research deepens the current understanding of the dynamics of AV innovation and contributes to TIS theory.
Keywords: Autonomous vehicle; technological innovation system; knowledge development; knowledge diffusion; patent analysis.
Consumer-Brand Relationship Development in the Automotive Market:
An Integrative Model
by Hans Ruediger Kaufmann, Cid Goncalves Filho, Christiane Rocha e Silva, Plinio Rafael Reis Monteiro
Abstract: The nature of Consumer-Brand Relationships (CBR) represents one of the topics with the most significant literary resonance in contemporary marketing. However, there is still a gap of a well-defined, integrated, and empirically tested model explaining the causal relationships of CBR's development stages. This study aims to explore and bridge this knowledge gap in the Automotive Market setting. In this sense, a survey of 427 consumers was carried out. The interrelated factors of the successive stages showed adequate levels of variance explanation. As word of mouth grows in importance, due to the spread of digital social networks, the research’s results suggest that the development of attachment/love should become a primordial challenge to develop Consumer-Brand Relationships. The main knowledge contribution of this research is the test of an integrated CBR model focused on the Automotive Market. The final CBR model reflects a fair level of consistency and provides a useful basis for practitioners to plan in detail actions that will engage Consumers and Manufacturer's Brands.
Keywords: automotive marketing, car manufacturer branding, consumer-brand relationships, brand equity, brand love, brand equity, brand loyalty, brand trust, brand commitment, brand image
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: SUPF 2017 Smart Urban Mobility Futures
Examining the Myths of Connected and Autonomous Vehicles: Analysing the Pathway to a Driverless Mobility Paradigm
by Alexandros Nikitas, Eric Tchouamou Njoya, Samir Dani
Abstract: Connected and autonomous vehicles (CAVs) could become the most powerful mobility intervention in the history of human race; possibly greater than the conception of the wheel itself or the shift from horse-carriages to automobiles. Despite CAVs likely traffic safety, economic, environmental, social inclusion and network performance benefits their full-scale implementation may not be as predictable, uncomplicated, acceptable and risk-free as it is often communicated by a large share of automotive industries, policy-makers and transport experts. Framing an unproven, 'disruptive' and life-changing intervention, primarily based on its competitive advantages over todays conventional automobile technologies, may create misconceptions, overreaching expectations and room for errors that societies need to be cautious about. This article tests eleven myths referring to an overly optimistic CAVs development and adoption timeline. This approach highlights unresolved issues that need to be addressed before an inescapable CAV-based mobility paradigm transition takes place and provides relevant policy recommendations of how to achieve that.
Keywords: Connected and Autonomous Vehicles; Driverless and Self-driving Technologies; Artificial Intelligence and Mobility; Smart Urban Futures; Transport Policy and Planning.
Range Extenders: An Innovative Approach to Range Anxiety in Electric Vehicles
by Ian Clarke, Athena Piterou
Abstract: Electric vehicles have been a source of major innovation but the problem of vehicle range persists. Range extenders, auxiliary power units that can be attached to vehicles as a trailer, seek to solve the problem by providing additional range during longer journeys. This study uses patent data, Social Network Analysis and qualitative data to examine the development of this technology. It finds that small firms have made significant progress in technological terms and have also designed credible business models. They have met resistance from larger vehicle manufacturers, however, whose preference is to wait for developments in battery density despite great uncertainty as to when these will come.
Keywords: electric vehicles; innovation; range anxiety; range extenders;.
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.
Special Issue on: SUPF 2017 Smart Urban Mobility Futures
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.
Management and Business of Autonomous Vehicles: A Systematic Integrative Bibliographic Review
by Bruna Cavazza, Rodrigo Gandia, Fabio Antonialli, André Zambalde, Isabelle Nicolaï, Joel Sugano, Arthur Neto
Abstract: This paper reviews studies in the research field of autonomous vehicles (AVs) in a bibliometric context from the viewpoints of management and business; identifies strategies, practices, and management tools; and summarizes the existing studies and points out their research gaps. Methodologically, our research can be characterized as qualitative and descriptive, being based on a bibliometric review of the ISI Web of Science, Scopus, and Science Direct databases, followed by a systematic integrative bibliographic review. The results show that, in the near future, AVs will certainly be introduced in the society. However, the way in which this might be established is still surrounded by uncertainty, doubled by governments lack of planning in this area. The absence of studies related to the business context can be a determinant for AV introduction, considering that business models play an important role in the events that precede AV advancement. Nevertheless, especially in European countries (e.g., the UK and Germany), studies related to the AV business model of car-sharing seem to be predominant, as this is a great substitute for traditional transportation models. As such, we observe a research gap regarding business models and platforms and radical and responsible innovation theories. Consequently, to minimize the risks, impacts, and uncertainties of the eminent introduction of AVs and provide the necessary tools to guide governmental and organizational spheres, further research is needed.
Keywords: Autonomous Vehicles; Business; Management; Systematic Integrative Review; Bibliometric Review.
From electric cars to energy-efficient houses the automotive retail sector at the crossroads
by Heike Proff, Gregor Szybisty, Thomas Martin Fojcik
Abstract: The already low profitability in the automotive retail will drop still further with the increasing market share of electric mobility. New sources of profit therefore have to be developed. While the manufacturers are already reviewing options for new retail systems beyond the traditional car retail, many car dealers are passive and pursuing a "wait and see" policy. It is therefore important, particularly for multi-brand dealers, to develop new service innovations for electric mobility and to develop new business models for it. The review of the literature, the own survey of 30 multi-brand dealers as well as of their largest single-brand dealers and creative workshops with (potential) customers about possible service innovations in automotive retail show a set of potential service innovations for electric mobility. Due to low profitability automotive dealers need a quick positive profit impact from service innovations for electric mobility. E-fleet man-agement and especially Brokerage of energy self-sufficient houses appear particularly suited to them.
Keywords: Perceived value; acceptance; willingness to pay; new mobility services; automotive retail; business models.