Title: Technological issues and organisational culture in the automotive industry
Authors: Steven Montes, Brian Kleiner
Addresses: Department of Management, College of Business and Economics, California State University, Fullerton, CA 92834, USA. ' Department of Management, College of Business and Economics, California State University, Fullerton, CA 92834, USA
Abstract: The world is getting smaller. With the help of the internet, e-mail, and improvements in transportation, a global market exists. To compete globally in the automotive industry, companies keep a close watch on costs. Costs can be reduced through technological advances in manufacturing, and outsourcing of labour. A growing trend is to have parts suppliers handle more of the manufacturing, and engineering, shifting the Original Equipment Manufacturer (OEM) to more of an assembler. Due to these changes and increasing complexity of the vehicles themselves, it is important to maintain quality relationships between OEMs and suppliers. In North America, Japan-based companies have better relationships with suppliers than traditional US carmakers. This may be due to the corporate culture or organisational culture of the Japanese firms. Their cultures are based on trust, communication, and respect for individuals, leading to a focus on quality and continuous improvements.
Keywords: manufacturing technology; global markets; cost reductions; outsourcing; corporate culture; Japan; organisational culture; automobile industry; original equipment manufacturer; automotive OEMs; inter-company relationships; Japanese car companies.
International Journal of Technology, Policy and Management, 2007 Vol.7 No.1, pp.68 - 74
Published online: 31 Jan 2007 *Full-text access for editors Access for subscribers Purchase this article Comment on this article