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Book part
Publication date: 8 April 2005

Fredrik von Corswant

This paper deals with the organizing of interactive product development. Developing products in interaction between firms may provide benefits in terms of specialization…

Abstract

This paper deals with the organizing of interactive product development. Developing products in interaction between firms may provide benefits in terms of specialization, increased innovation, and possibilities to perform development activities in parallel. However, the differentiation of product development among a number of firms also implies that various dependencies need to be dealt with across firm boundaries. How dependencies may be dealt with across firms is related to how product development is organized. The purpose of the paper is to explore dependencies and how interactive product development may be organized with regard to these dependencies.

The analytical framework is based on the industrial network approach, and deals with the development of products in terms of adaptation and combination of heterogeneous resources. There are dependencies between resources, that is, they are embedded, implying that no resource can be developed in isolation. The characteristics of and dependencies related to four main categories of resources (products, production facilities, business units and business relationships) provide a basis for analyzing the organizing of interactive product development.

Three in-depth case studies are used to explore the organizing of interactive product development with regard to dependencies. The first two cases are based on the development of the electrical system and the seats for Volvo’s large car platform (P2), performed in interaction with Delphi and Lear respectively. The third case is based on the interaction between Scania and Dayco/DFC Tech for the development of various pipes and hoses for a new truck model.

The analysis is focused on what different dependencies the firms considered and dealt with, and how product development was organized with regard to these dependencies. It is concluded that there is a complex and dynamic pattern of dependencies that reaches far beyond the developed product as well as beyond individual business units. To deal with these dependencies, development may be organized in teams where several business units are represented. This enables interaction between different business units’ resource collections, which is important for resource adaptation as well as for innovation. The delimiting and relating functions of the team boundary are elaborated upon and it is argued that also teams may be regarded as actors. It is also concluded that a modular product structure may entail a modular organization with regard to the teams, though, interaction between business units and teams is needed. A strong connection between the technical structure and the organizational structure is identified and it is concluded that policies regarding the technical structure (e.g. concerning “carry-over”) cannot be separated from the management of the organizational structure (e.g. the supplier structure). The organizing of product development is in itself a complex and dynamic task that needs to be subject to interaction between business units.

Details

Managing Product Innovation
Type: Book
ISBN: 978-1-84950-311-2

Book part
Publication date: 30 March 2022

Natalia A. Volgina and Yuanlong Wang

China is one of the fastest-growing countries; it holds important positions in many product markets, including the global automotive market. The objectives of this study are as…

Abstract

China is one of the fastest-growing countries; it holds important positions in many product markets, including the global automotive market. The objectives of this study are as follows: to assess the position of China in the global automotive production, global automotive exports and imports; and also compare the position of China on these indicators with the main competing countries. In this regard, the method of comparative analysis has become the main research method. Based on the analysis and calculations performed, the authors came to some conclusions. China came out on top in the production and export of automotive products, overtaking key competitors, including the United States, Japan, Germany and India. This was achieved through an effective combination of trade, investment and industrial policy instruments. The decline in production and export of cars during the COVID-19 coronavirus pandemic was minimal in China compared to competitors, which is explained by an efficiently formed supply chain, as well as the presence of transport hubs (7 of the 10 largest sea container ports are located in China). The authors believe that future trends in the development of the Chinese automotive industry will be associated with the renewal of production to reduce environmental pollution and restructuring of supply chains to further localize the production of intermediate components for the automotive industry.

Details

Current Problems of the World Economy and International Trade
Type: Book
ISBN: 978-1-80262-090-0

Keywords

Article
Publication date: 1 February 1977

D.G. Rhys

In the British and European motor industry there co‐exist firms which differ widely in size. Given the existence of economies of scale the smaller firms are faced with the problem…

286

Abstract

In the British and European motor industry there co‐exist firms which differ widely in size. Given the existence of economies of scale the smaller firms are faced with the problem of survival; more precisely, of being able to charge a premium price to offset higher unit costs. After confirming the existence of scale economies this paper looks at the corporate strategies of smaller firms, but first it is necessary to clarify what we mean by “smaller firms”. In any market for any good where economies of scale exist in its production, firms smaller than the optimum could, if no non‐scale problems exist, be at a cost and, with competition, a profit disadvantage. However, in the motor industry the term “smaller” covers various types of operation.

Details

Management Decision, vol. 15 no. 2
Type: Research Article
ISSN: 0025-1747

Article
Publication date: 19 July 2013

Yi Wang

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

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Abstract

Purpose

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

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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

Practical implications

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.

Originality/value

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.

Details

Journal of Science and Technology Policy in China, vol. 4 no. 2
Type: Research Article
ISSN: 1758-552X

Keywords

Article
Publication date: 13 February 2009

Hugo van Driel and Wilfred Dolfsma

The purpose of this paper is to disentangle and elaborate on the constitutive elements of the concept of path dependence (initial conditions and lock‐in) for a concerted and…

5537

Abstract

Purpose

The purpose of this paper is to disentangle and elaborate on the constitutive elements of the concept of path dependence (initial conditions and lock‐in) for a concerted and in‐depth application to the study of organizational change.

Design/methodology/approach

The approach takes the form of a combination of a longitudinal and a comparative case‐study, based on secondary literature.

Findings

External initial conditions acted less as “imprinting” forces than is suggested in the literature on the genesis of the Toyota production system (TPS); a firm‐specific philosophy in combination with a critical sequence of events mainly shaped and locked‐in TPS.

Research limitations/implications

The empirical sources are limited to publications in English, so relevant factors explaining the path taken may not all have been included. The importance of a salient meta‐routine might be firm‐specific.

Practical implications

The study contributes to understanding the factors underlying corporate performance by a critical re‐examination of a much heralded production system (TPS).

Originality/value

The paper highlights the use of the concept of meta‐routines to connect the core elements of path dependence, that is, sensitivity to initial conditions and lock‐in mechanisms.

Details

Journal of Organizational Change Management, vol. 22 no. 1
Type: Research Article
ISSN: 0953-4814

Keywords

Article
Publication date: 20 November 2017

D.G. Brian Jones and Alan J. Richardson

The aim of this study is to explore the attempts by early twentieth century cyclecar manufacturers in the UK and USA to segment the personal transportation market and to position…

1165

Abstract

Purpose

The aim of this study is to explore the attempts by early twentieth century cyclecar manufacturers in the UK and USA to segment the personal transportation market and to position early cyclecars through the development of unique product attributes and advertising. More specifically, the authors speculate about early twentieth century British cyclecar marketing strategies that implicitly recognized a sports car segment and positioned cyclecar brands to meet the needs of that segment.

Design/methodology/approach

The primary source material for this research is a sample of 205 print ads and articles from the early twentieth century (1912-1921) specialty magazines devoted to cyclecars in the UK and USA. We combine the content analysis of the sample of ads with a critical reading and interpretation of a sub-sample of those same ads.

Findings

Between 1910 and 1921, a new form of personal transportation was developed that combined the technology of motorcycles with the utility of automobiles. Known as “cyclecars”, these vehicles were typically constructed from off-the-shelf motorcycle parts and assembled in small batches by a myriad of manufacturers. Current scholarship suggests that the cyclecar craze of the 1910s ended with the introduction of low cost “real” automobiles such as the Ford Model T, Austin 7 and Morris Oxford. We use the content analysis of cyclecar advertisements to construct a brand-positioning map of this emerging segment of the transportation market. We argue that while the core cyclecar positioning was in direct competition with small economically positioned cars such as the Ford Model T, a significant part of the market, primarily centered in the UK, could be considered as for sports cars. That segment of the cyclecar market, along with the development of cyclecars into urban delivery vehicles, continued over time and has re-emerged today in a range of three-wheeled sports cars, including the updating and continuation of the British Morgan 3 Wheeler model which was launched during the heyday of cyclecars.

Research limitations/implications

The authors can only speculate about the impact of the Ford Model T in this study. Further research on that issue is needed.

Originality/value

This is the first historical study of cyclecar marketing. Most of what little has been published about cyclecars focuses on their design and technology.

Details

Journal of Historical Research in Marketing, vol. 9 no. 4
Type: Research Article
ISSN: 1755-750X

Keywords

Article
Publication date: 14 June 2011

Anu Bask, Mervi Lipponen, Mervi Rajahonka and Markku Tinnilä

Modularity has been identified as one of the most important methods for achieving mass customization. However, service models that apply varying levels of modularity and…

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Abstract

Purpose

Modularity has been identified as one of the most important methods for achieving mass customization. However, service models that apply varying levels of modularity and customization also exist and are appropriate for various business situations. The objective of this paper is to introduce a framework with which different customer service offerings, service production processes, and service production networks can be analyzed in terms of both modularity and customization.

Design/methodology/approach

The paper builds theory and offers a systematic approach for analyzing service modularity and customization. To illustrate the dimensions of the framework, the authors also provide service examples of the various aspects.

Findings

In the previous literature, the concepts of modularity and customization have often been discussed in an intertwined manner. The authors find that when modularity and customization are regarded as two separate dimensions, and different perspectives– such as the service offering, the service production process, and the service production network – are combined we can create a useful framework for analysis.

Research limitations/implications

Rigorous testing is a subject for future research.

Practical implications

The framework helps companies to analyze their service offerings and to compare themselves with other companies. It seems that in practice many combinations of modularity and customization levels are used in the three perspectives.

Originality/value

This paper develops a framework for analyzing service offerings in terms of modularity and customization. The framework provides a basis for analyzing different combinations of these two aspects from the three perspectives, and herein lies its value.

Details

Journal of Business & Industrial Marketing, vol. 26 no. 5
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 1 December 2006

Joachim Kuhn

The aim of this paper is the design of a strategic‐operational decision support to justify a specific network configuration. Based on cost/earnings equations regarding quality…

2752

Abstract

Purpose

The aim of this paper is the design of a strategic‐operational decision support to justify a specific network configuration. Based on cost/earnings equations regarding quality, time and cost restrictions, the equations on the operational level get linked to the business strategy of globalisation.

Design/methodology/approach

The methodology is based on literature and empirical analysis reflecting internal and external benchmarking with other European‐based car manufacturers. Thus, it combines theoretical aspects with practical evidence.

Findings

The findings include a comparison of the traditional production strategy with an agile production. As shown for this industry sector, the future concentration of production will be with third party manufacturers (3PM) or in certain cases still with the OEM.

Research limitations/implications

Further, research is embedded in comparing the agility approach with the different cultural elements like power distance or uncertainty avoidance, particularly for the automotive industry as one of the few globally favoured industry sectors. Another research field is addressed with the degree of customization: how much is really appreciated by the customer and therefore needs a flexible manufacturing approach?

Practical implications

The practical implication lies in the decision support to design a global network of manufacturing locations. Moreover, the practitioner gets an insight for the limits of agility in the automotive sector.

Originality/value

The value of this paper is given by bridging the scientific approach and practical constraints resulting in a state‐of‐the‐art decision‐making for network design in the automotive industry.

Details

Journal of Manufacturing Technology Management, vol. 17 no. 8
Type: Research Article
ISSN: 1741-038X

Keywords

Book part
Publication date: 16 September 2014

Ludger Pries and Martin Seeliger

Make a contribution on company business models and typical reactions to economic crises.

Abstract

Purpose

Make a contribution on company business models and typical reactions to economic crises.

Design/methodology/approach

Media-analysis-based case study.

Findings

Crisis is handled through drawing on a strategy deriving from the typical features of the company; through the crisis these features are even intensified.

Research limitations/implications

Multinational companies are complex and only transparent to a small degree; the empirical data therefore rests on a database with articles.

Social implications

Social implications can be seen at the BMW as a functioning example for social partnership as a form of economic embeddedness at the societal level.

Details

Production, Consumption, Business and the Economy: Structural Ideals and Moral Realities
Type: Book
ISBN: 978-1-78441-055-1

Keywords

Content available
Book part
Publication date: 17 October 2022

Abstract

Details

Electrifying Mobility: Realising a Sustainable Future for the Car
Type: Book
ISBN: 978-1-83982-634-4

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