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The auto industry in the USA is facing tremendous challenges – plunging demands due to economic downturn, the gloomy trend in technology development, and fierce global competition. This article aims to examine the challenges of supply chain management and to propose a triple‐C (cease‐control‐combine) remedy for the North American auto industry's supply chain management.

The authors applied management theories, collected information from managers at different levels of the auto industry's supply chain management, and developed a novel theoretical model of sustainability in supply chain management for the auto industry.

It is argued that outsourcing to low cost countries – the current supply chain strategy – is not only unsustainable but also irresponsible for the auto industry and society. A triple‐C (cease‐control‐combine) remedy is proposed for the auto industry's supply chain management.

The proposed triple‐C strategy will save the auto industry money in R&D investment, reduce quality cost and inventory waste, help the industry go through the volatile economy, and achieve sustainable development. With close relationships and strong supports from suppliers, the industry can speed up technology development, introduce new gas efficiency models quickly, and become less dependent on gas price. Finally, the triple‐C strategy will help the industry keep jobs and generate new jobs in the USA. These activities lead to public support and restored corporate image.

The current business environment is analyzed, problems of current supply chain strategy discussed, and a new supply chain strategy remedy for the North American auto industry proposed.

Due to dramatic transformation of the auto industry, governments are implementing innovation policies to ensure the domain of sustainable technologies. According to the literature, developing countries that depend on multinational subsidiaries must invest in complementary innovation to be part of their research and development (R&D) headquarters' long-term plans. This study analyses the Brazilian auto industry innovation policy (Rota 2030) to evaluate if it targets complementarity with the German's one (NPE). It also compares the institutional arrangements of the former against the latter to check for governance gaps.

It applies a case-oriented comparative method (Ragin, 2014) for the analysis of qualitative evidence on secondary data. It investigates evidence of complementarity between Rota 2030 and national platform for electric mobility (NPE) objectives and checks for governance gaps in Rota 2030 using NPE as a reference.

The results confirmed a loose fitting between the innovation policies mainly for a lack of determinism of Rota 2030 objectives. Governance gaps were also found on Rota 2030 policy formulation and operationalization.

It contributes for the improvement of Rota 2030, and its analytical frame may be used for the formulation or adjustment of other developing countries' innovation policies.

It contributes with innovation system and policy field development with a theoretical extension coming from the New Institutional Economics (NIE) (Menard, 2018). By examining the performance of “institutional arrangements” during the process of formulation and operationalization of innovation policies, it shows the importance of coordination for their effectiveness.

The learning outcomes of this paper will help students in understanding the dynamics of the formation of industry clusters and the benefits associated with industry clusters. The case will give stimulus towards the cluster competition.

The case describes the dilemma of a potential investor of a tyre company that wants to diversify its product line and is searching for a new strategic location. The investor is thoughtful about the Pithampur auto industry cluster for its upcoming investment. The case demonstrates how Pithampur has transformed into an “industry cluster” and the benefits it provides to firms in it. However, Pithampur is not the only auto industry cluster in India, clusters like Chakan-Pune is in competition with Pithampur for attracting investments. This is a cause of worry for the cluster’s stakeholders. The case projects amalgamation of concerns of the stakeholders of the clusters and those of potential investors in evaluating and benchmarking it with other clusters for a competitive future.

Suitable for both undergraduate and post-graduate students (MBA students).

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS: 11: Strategy.

Wonders whether companies actually have employees best interests at heart across physical, mental and spiritual spheres. Posits that most organizations ignore their workforce – not even, in many cases, describing workers as assets! Describes many studies to back up this claim in theis work based on the 2002 Employment Research Unit Annual Conference, in Cardiff, Wales.

Today’s automotive leadership faces harsh competitive truths. Six forces will have transformed the automotive world by 2008: (1) an imperative to create value for consumers and shareholders, faster; (2) further consolidation and scale (yet scale alone is not guarantee of success); (3) a greater need for production and process agility, to embrace technological breakthroughs in vehicle engineering; (4) the advent of new disruptive technology in vehicles, and in supply chains; (5) accelerated innovation of products and services; innovation is the differentiator; and (6) Increasing customer expectation of both choice and value. Success in the future will depend on adopting a model that is based on collaborative relationships with suppliers and others. Companies that can assemble the best supply communities and accelerate consumer‐centric innovation faster than their competitor’s network will be the winners. Collaborative product commerce (CPC) provides the framework under which multiple‐company collaborative communities can flourish and deliver long term sustainable value. The transition to a collaborative model requires strategic leadership. The formation of new communities will not happen as a natural evolution from the lower forms of collaboration that currently exist. The benefits of CPC include: shorter cycle times, cost reductions, development of consumer‐centric offerings. Six key steps to CPC are: (1) make collaboration the centerpiece of strategy: obtain a community of partners that excel in customer responsiveness, speed to market, and innovation; (2) anticipate the upcoming disruptive forces and create a collaborative response with key community partners rather than in isolation; (3) work with community partners to identify essential areas where collaboration can create a superior business model; (5) begin working with partners first on enhancing product development; (5) focus on core competencies and eliminate redundant processes; and (6) share value within the community. The mastery of collaboration will prove a defining and indispensable strategy for the automotive leaders that will emerge early in the second automotive century.

The purpose of this paper is to investigate the value of information in consumer safety complaints for organizational learning.

Empirical analysis of this study uses a novel secondary data set, which is formed by combining complaints data filed with the National Highway Traffic Safety Administration (NHTSA) for potential safety defects, and design change information from 2003 to 2011 model-year vehicles in the USA.

First, the paper demonstrates the value of information embedded in complaints. Second, in the case of radical product redesigns, owing to the lack of direct applicability of consumer feedback based learning, the impact of learning on product safety is found to be muted, third, the results suggest that the safety complaint rates vary by vehicle classes/categories and, fourth, the findings differ from prior research conclusions on vehicle quality. Prior research finds the debuting car models have the lowest repair rates among all car models produced in a given year, but the current study finds the debuting models to have the highest rates of safety complaints.

Quality management literature rarely examines the safety complaints data (which, unlike other consumer feedbacks, focuses exclusively on the safety hazards due to flaws that result in accidents). This paper fills the gap in literature by linking safety complaints with future product quality and organizational learning.

Professor Vijay Govindarajan’s “Three Box Solution” framework provides a useful way of looking at a transformative business innovation initiative started at General Motors almost three decades ago and now being further developed by its current CEO Mary Barra.

Drawing on 18 years of experience at GM the author offers insights into how the company used the “Three Box” aproach: 10;•9;Box 1: Strengthen the core. 10;•9;Box 2: Let go of the practices that drive the core business but hinder the new one. 10;•9;Box 3: Invented a new business model. 10;

GM management found creative ways to enable the current business to thrive while exploring the potential market for a visionary business model.

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Based on actual experience of participating in strategy development this paper should help decision makers address their current actions and future strategies simultaneously.

The purpose of this paper is to examine evolutionary processes of sectoral systems of innovation in China's catch‐up situation.

History event analysis method is used. The data that inform this paper come primarily from interviews carried out as a part of case studies of the innovations of China's car industry as well as public sources.

Market catch‐up of China's self‐owned brand cars expanded from low to high end market segment. Changes of the five building blocks of innovation system of China's car industry have driven the market catch‐up since the 1980s. The five building blocks are: market demand, industrial technology and knowledge base, institutional setting, industrial structure, firms' competences and strategy. China's car industry evolved through exploitation and exploration, which were affected by the five building blocks. The exploitation and exploration shaped the catch‐up way of China's car industry: from production localization to design localization and self‐owned brands. Exploration of the self‐owned brand group built on exploitation of the joint‐venture group.

The findings are based on a single industry. Studies on more industries are needed to generalize the research results.

Increased understanding of how sectoral systems of innovation evolve will give managers and policy makers in the developing countries like China improved opportunities to formulate policies and management practices that can cultivate innovation capabilities in catch‐up.

The paper contributes to the research stream on sectoral systems of innovation by understanding building blocks and evolutionary processes at the base of change and growth in the catch‐up situation.

Develops an original 12‐step management of technology protocol and applies it to 51 applications which range from Du Pont’s failure in Nylon to the Single Online Trade Exchange for Auto Parts procurement by GM, Ford, Daimler‐Chrysler and Renault‐Nissan. Provides many case studies with regards to the adoption of technology and describes seven chief technology officer characteristics. Discusses common errors when companies invest in technology and considers the probabilities of success. Provides 175 questions and answers to reinforce the concepts introduced. States that this substantial journal is aimed primarily at the present and potential chief technology officer to assist their survival and success in national and international markets.