Search results
1 – 10 of over 16000Sung-Ho Shin and Soo-Yong Shin
Global value changes continued to expand until the late 2000s. On the other hand, regional value chains have formed around major regional hubs due to the expansion of domestic…
Abstract
Global value changes continued to expand until the late 2000s. On the other hand, regional value chains have formed around major regional hubs due to the expansion of domestic demand in emerging economies, such as China, and strengthened trade protectionism since the global financial crisis. Such changes lead to the reorganisation of value chains, focusing on domestic markets (reshoring) or neighbouring countries (nearshoring). In particular, the importance of supply chain risk management has been highlighted following disruptions to the supply network due to the COVID-19 outbreak in December 2019. In this regard, major countries such as the USA and the EU are rapidly shifting to regional value chains for stable and sustainable production, rather than primarily aiming for production efficiency targeted at reducing costs. Industries in particular are more exposed to such supply chain risks under the existing structure and it now has become extremely important for businesses to take reaction to such risks. This is especially important for major industries in a country such as automobile or semiconductor manufacturing industries in South Korea. The aim of this study, therefore, is to establish the basis for the simultaneous growth of ports and linked industries by examining the existing structure of the global value chain for the automotive industry, which has a strong presence in South Korea’s domestic economy. In this regard, this research carries out a supply chain analysis focusing on the imports and exports of automotive parts. It also analyses the current structural risks and suggests risk management measures to secure a stable supply chain.
Details
Keywords
Luz María Valdez-de la Rosa, Luis Alberto Villarreal-Villarreal and Gustavo Alarcón-Martínez
The purpose of this paper is to identify the causal relationship between the independent variables such as process quality and product innovation in regard to the dependent…
Abstract
Purpose
The purpose of this paper is to identify the causal relationship between the independent variables such as process quality and product innovation in regard to the dependent variable of competitiveness, in the manufacturing sector of the automotive industry, specifically for Tier 1 auto parts manufacturing companies in the state of Nuevo León, México.
Design/methodology/approach
Based on a thorough review of the literature, an instrument was designed to measure the competitiveness of automotive industry manufacturing; it was applied to Tier 1 suppliers of automotive parts in the state of Nuevo León, México. Various statistical analysis tests were applied to the results; first, Cronbach's alpha to determine the reliability of the instrument, and next, a factor analysis to measure construct validity. In addition, a multiple linear regression analysis was carried out to identify the causal relationships between the variables analysed.
Findings
This study found that process quality as well as product innovation have independent and positive causal relationships with respect to competitiveness in automotive manufacturing.
Research limitations/implications
The limitations of this paper are its focus on a single manufacturing sector, application in a single country and small sample size.
Practical implications
Companies that supply automotive parts will be able to invest in the key elements of quality and innovation while focusing their efforts on reinforcing their competitiveness.
Originality/value
Auto parts suppliers will be able to perform specific actions to improve their quality processes through lean manufacturing and quality assurance practices and by designing new and innovative products that will enhance their competitiveness.
Details
Keywords
Chan‐orn Bongsebandhu‐phubhakdi, Tomoko Saiki and Hiroshi Osada
Thai domestic automotive parts companies have to manage their technology and human resources effectively and efficiently. This paper attempts to identify the key factors for…
Abstract
Purpose
Thai domestic automotive parts companies have to manage their technology and human resources effectively and efficiently. This paper attempts to identify the key factors for management of their technology and human resources.
Design/methodology/approach
Questionnaires were sent to, and interviews conducted in, Thai domestic automotive parts companies.
Findings
Enhancement of employee support is useful for domestic companies and there are significant differences among companies of Tier 1 or 2 and Tier 3 in quality management and the number of proprietary and management technologies adopted.
Practical implications
It can be said that Thai domestic automotive parts companies should adopt higher level quality management tools as well as more proprietary and management technologies in order to raise their technology level.
Originality/value
The paper analyzes the responses of questionnaires directly mailed to Thai domestic automotive parts companies and direct interviews to some of them. It was found that Thai domestic automotive parts companies have to enhance employee support and to improve their technology level to increase their product quality.
Details
Keywords
Zaheer Khan, Yong Kyu Lew and Rudolf R. Sinkovics
This paper aims to explore inter-organizational linkages and the extent of technology transfer and develop propositions related to the linkages, technology transfer and upgrading…
Abstract
Purpose
This paper aims to explore inter-organizational linkages and the extent of technology transfer and develop propositions related to the linkages, technology transfer and upgrading of local suppliers in developing economies.
Design/methodology/approach
The authors conduct a literature review and 50 exploratory interviews with senior managers and policymakers in the automotive parts industry of Pakistan.
Findings
The data revealed that three major international joint ventures (IJVs) established in the automotive industry of Pakistan have created significant vertical linkages. However, advanced high-level technology transfer has not actually taken place due to the following reasons: IJV parents are reluctant to engage in technology transfer, there is limited support from local government and local suppliers exhibit limited improvement in their innovation capability. The vertical linkage creation and low-medium technology transfer contributes to incremental product upgrading of the local suppliers, rather than their process upgrading and insertion into the global value chain (GVC).
Research limitations/implications
This research looked at technology interactions between IJVs and local tier-1 suppliers (not tier 2 and tier 3) in Pakistan’s automotive industry. This paper’ illustrative case indicates what is required for local suppliers in developing economies to make breakthrough upgrades of their products and processes through their vertical linkages with foreign-owned indigenous firms.
Originality/value
Unlike prior research, the authors investigate the role of inter-organizational linkages and the extent of technology transfer, and how these affect local suppliers’ product/process upgrading in the local value chain. Highlighting the illusion of upgrading in the GVC, this paper reveals the difficulties involved in upgrading suppliers’ positions (e.g. insertion and functional upgrading in the GVC) through their vertical linkages with foreign multinational enterprises in developing economies. The illusion of upgrading sheds a rather disappointing light on the position of developing country supplier vis-à-vis their powerful international partners.
Details
Keywords
Kyung‐Tae Kim, Seung‐Kyu Rhee and Joongsan Oh
The purpose of this paper is to investigate the strategic role evolution of client‐following local subsidiaries of foreign automotive parts suppliers in China.
Abstract
Purpose
The purpose of this paper is to investigate the strategic role evolution of client‐following local subsidiaries of foreign automotive parts suppliers in China.
Design/methodology/approach
The units of analysis are five local subsidiaries of foreign automotive parts suppliers dealing with Beijing Hyundai Motor Corporation in China; a case study methodology based on interviews with managers of the subsidiaries was employed.
Findings
First, a modified version of Ferdows's model can be utilized to aptly analyze the strategic role changes of subsidiaries of foreign automotive parts suppliers which have followed their major client into the emerging market. Second, the development of a subsidiary's functional capabilities varies from subsidiary to subsidiary, depending on the headquarters' (HQ) global strategy and the nature of its interactions with external players. Third, the strategic role evolution of a subsidiary is critically influenced by the levels of its functional capabilities. Finally, the mechanism for a subsidiary's strategic role evolution can be explained by the interactions of three critical factors: the task assigned by HQ, the subsidiary's choice, and the local environment.
Research limitations/implications
The external validity of this case study is yet to be verified and the possible gaps in perceptions between the subsidiary and the HQ have not yet been addressed. This is the first case study to address the strategic role evolution of client‐following subsidiaries of automotive parts suppliers.
Practical implications
This study presents the HQ with a framework for role assignments and a checklist for planning the development of a subsidiary's capabilities.
Originality/value
This is the first paper to investigate the strategic role evolution of local subsidiaries of foreign automotive parts suppliers in the emerging market, and it finds critical factors affecting capability development, which in turn shape the subsidiary's process of role evolution.
Details
Keywords
Jing Shao, Shuo Huang, Isaac Lemus-Aguilar and Enes Ünal
Although China can be considered an early adopter of the circular economy, there are few studies of remanufacturing business models (BMs) in the context of the Chinese automobile…
Abstract
Purpose
Although China can be considered an early adopter of the circular economy, there are few studies of remanufacturing business models (BMs) in the context of the Chinese automobile industry. The purpose of this paper is to investigate viable BMs, summarizes current obstacles and anticipates future development opportunities and directions.
Design/methodology/approach
The cross-case analysis considers the roles of value networks and of customer value proposition and interface in circular business models (CBMs) by examining the strategies and tactical measures of two leading remanufacturers. The data are collected from semi-structured interviews, documents, etc.
Findings
The analysis identifies the following components of viable BMs of remanufacturers: reclaiming raw material, managing used components, producing new products and marketing. Several current obstacles are summarized from four perspectives: policy barriers and insufficient government support; consumer awareness; related product quality; and technology. The study also identifies future directions and opportunities for the automobile parts remanufacturing industry.
Originality/value
This study contributes to the CBM literature by mapping the barriers and opportunities in remanufacturing. The results have shed some light into the field of sustainability in manufacturing firms by empirically testing the theoretical model. The results will help managers to design viable CBMs in different contexts.
Details
Keywords
The purpose of this paper is to investigate the status of lean manufacturing in Indian automotive sector, component manufacturing industries in terms of lean adoption, benefits…
Abstract
Purpose
The purpose of this paper is to investigate the status of lean manufacturing in Indian automotive sector, component manufacturing industries in terms of lean adoption, benefits, motivation, and challenges of implementing lean manufacturing practices.
Design/methodology/approach
The research objectives were achieved by conducting a qualitative multicase study approach. Fourteen Indian automotive component manufacturing small and medium-sized enterprises (SMEs) were chosen based on their different product offerings as well as differing approaches to the introduction and implementation of lean initiatives. Data were collected through in-depth, semistructured interviews supported by shop-floor observations.
Findings
The findings from the present study suggest that some of the participating automotive component manufacturing SMEs have a relatively good understanding of lean concepts and philosophy. However, there is room for further improvement for most SMEs. Major top five lean practices being implemented were found to be cellular manufacturing, total productive maintenance, 5S, work standardization, and quality management practices. Also, leadership and organizational culture were found to be crucial factors for the success of lean manufacturing.
Research limitations/implications
The fact that the data collected for the research study is based on subjective business evidence obtained from company representatives comprises the main limitation of the present study. So, the results should be considered with caution, as far as the lean adoption in Indian automotive component manufacturing sector is concerned.
Practical implications
Based on the present study, suggestions can be made regarding the successful adoption of lean principles, not only for the participating SMEs but also for the whole of the automotive component manufacturing sector. More specifically, by determining the strength and weakness of automotive component manufacturing SME's effort to adopt lean, suitable managerial initiatives can be undertaken by these companies as well as the whole sector to fully adopt lean and derive the respective benefits.
Originality/value
This paper explores the status of lean adoption in Indian automotive component manufacturing SMEs. Considering the unique characteristics of the automotive component manufacturing industry, the present research would be helpful for making strategies to implement lean in automotive component manufacturing industry setups.
Details
Keywords
This research examines the influences of organizational contexts (i.e. firm size, international level, tier level, export level, product brand and IATF 16949 - an international…
Abstract
Purpose
This research examines the influences of organizational contexts (i.e. firm size, international level, tier level, export level, product brand and IATF 16949 - an international quality management certification in the automotive industry) on business continuity management (BCM) (i.e. leadership, strategy, planning, application and maintenance).
Design/methodology/approach
Data were collected from 216 automotive parts manufacturers in Thailand. Regression analysis was used to test hypotheses.
Findings
The study found that firm size, international level, tier level, export level and product brand had significant positive impacts on overall BCM and every component, except for the insignificant effect of tier level on strategy. IATF 16949 had insignificant impacts on overall BCM and all components, except for maintenance.
Originality/value
This is one of the first research studies to investigate the influences of organizational characteristics on business continuity management.
Details
Keywords
Chiara Pollio and Lauretta Rubini
The purpose of this paper is to critically analyze the case of selective industrial policies for the automotive industry in Thailand.
Abstract
Purpose
The purpose of this paper is to critically analyze the case of selective industrial policies for the automotive industry in Thailand.
Design/methodology/approach
Founding on previous literature and official government documents, the authors describe the implemented policies, dividing them into four phases according to the main trend they followed. The authors suggest results the policies have or have not reached by analyzing the current state of the sector.
Findings
The main point is that selective policies implemented in the country were successful in helping the development of the sector as a whole, contributing to the role of Thailand as main actor in the international market. However, such policy initiatives were not able to solve some of the main issues of the automotive sector in the country related to local development, such as the technology dependence on foreign (mainly Japanese) firms and the weakness of local suppliers.
Originality/value
The authors frame the development of the automotive sector in a twofold perspective: on one hand, the international/exogenous factors and, on the other hand, the role of policy. The authors interpret the effects of selective industrial policy under the lens on both evolution and growth of the sector per se and on the enhancement of local capabilities. The work shows that the results do not go in the same direction.
Details
Keywords
Surajit Bag, Atul Kumar Sahu, Peter Kilbourn, Noleen Pisa, Pavitra Dhamija and Anoop Kumar Sahu
Circular economy denotes future sustainability that allows optimum utilization of resources. In the present era of technology, plenty of innovations are happening across the…
Abstract
Purpose
Circular economy denotes future sustainability that allows optimum utilization of resources. In the present era of technology, plenty of innovations are happening across the world, and digital manufacturing is one of such innovations. However, there are several barriers which are impeding adoption of digital manufacturing in circular economy environment. The study explores the barriers of digital manufacturing initiatives in a circular economy and develops a methodological model to prioritize the identified challenges for automotive parts manufacturing industry.
Design/methodology/approach
Seven categories of challenges namely process, human resources, financial, collaboration, technological, security and leadership challenges were identified from literature and further validated with subsequent discussions with experts from the industry. The study is conducted in two phases, where in the first phase, the Decision-Making Trial and Evaluation Laboratory (DEMATEL) technique is used to define the priority and importance of seven categories of challenges. In second phase, the barriers are ranked using a Fuzzy Performance Important Index (FPII), taking into account contextual factors associated with the challenges and linked barriers, to determine the extent to which they impede the adoption of digital manufacturing in the sample automotive parts manufacturing company.
Findings
The “risk of data security and information privacy in connection with use of external data and protecting customer data” appeared as the most significant barrier to digital manufacturing in circular economy. Furthermore, technological challenges emerged as the most significant category of challenges followed by financial challenges in adoption of digital manufacturing in circular economy.
Practical implications
Identification of the identified barriers and understanding the interrelationships will lead to easier adoption of digital manufacturing in circular economy.
Originality/value
Despite all the potential benefits of implementing Industry 4.0 technologies in manufacturing industries, the adoption thereof is still in nascent phase with significant challenges yet to be overcome to accelerate the pace of adoption. Hence, this study explores the barriers preventing companies from adopting and benefiting from digital manufacturing initiatives and further develops a methodological model.
Details