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Article
Publication date: 5 July 2013

Qiang Ding and Michèle E.M. Akoorie

– The purpose of this paper is to analyze the historical development and characteristics of the globalizing Chinese automobile industry.

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Abstract

Purpose

The purpose of this paper is to analyze the historical development and characteristics of the globalizing Chinese automobile industry.

Design/methodology/approach

This study is positioned as an exploratory case study, using data triangulation techniques based on archival research and published reports of statistical agencies both at central government and single industry level.

Findings

China's automobile industry represents an extraordinary case of a development path toward globalization in a transitional economy. One of the obvious characteristics of the auto industry is that it necessitates technology transfer and innovative learning, which can be regarded as an important aspect of maintaining competitiveness in industrialization and global competition. The automobile industry in China is also characterized by state intervention and industrial regulations. The state initiated open-door reform has led to a mixed regulatory mechanism including both market-based competition and the legacy of a command economy. Other major features are demonstrated as follows: state-owned auto enterprises have been gradually given more freedom in the decision-making processes; the Chinese auto industry has shown phenomenal growth in the country's economic development with an average annual rate of about 9 percent. This achievement combined with the increasing impacts of globalization of production and market expansion has undoubtedly led to the increasing inflows of foreign direct investment in the form of international partnerships between the auto-producing MNCs and major local Chinese firms as per the industrial policies in the Chinese automobile industry.

Originality/value

This paper addresses an important topic, the historical development path of the Chinese automobile industry, but to date, it has received very little research attention. It advances the institution-based perspective and therefore develops a better understanding of changes in China's automobile industry over the past decades since 1949 and concludes that the combination of the influences of foreign technology, China's industrial policies and institutional dynamic processes has resulted in a unique dynamic development path for the globalizing Chinese automobile industry.

Details

Journal of Technology Management in China, vol. 8 no. 2
Type: Research Article
ISSN: 1746-8779

Keywords

Open Access
Article
Publication date: 30 June 2011

Hyung-Geun Kim

China is currently developing and promoting an industrial cluster policy at the government level. By enacting the ‘Opinion on promoting industrial cluster development’, China is…

Abstract

China is currently developing and promoting an industrial cluster policy at the government level. By enacting the ‘Opinion on promoting industrial cluster development’, China is supporting the development of industrial clusters. Building an industrial cluster is done by using a single factor but requires many additional factors like regional characteristics, competitiveness factors are also diversified. To evaluate the competitiveness of the Chinese automobile industry cluster, a competitiveness element index should be developed and a competitiveness evaluation method is needed to evaluate the importance of each element. To accomplish this objective, this research applied the analytic hierarchy process (AHP) and focused on the importance of the competitiveness elements.

This research investigated the character is tics regarding cases of clusters and also analyzed the competitiveness of the Changchun automobile cluster located in northeastern China. The purpose of this research is to help Korean enterprises who enter China in the hopes that Korea will emerge as a top automobile production country.

Details

Journal of International Logistics and Trade, vol. 9 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Article
Publication date: 22 March 2013

Linghui Tang and Brian Fitzsimons

The purpose of this paper is to investigate recent labor unrest in China's automobile industry and the implications for the debate on the future of the country's labor relations…

8587

Abstract

Purpose

The purpose of this paper is to investigate recent labor unrest in China's automobile industry and the implications for the debate on the future of the country's labor relations and cost competitiveness.

Design/methodology/approach

Using data between 1999 and 2007, the authors examine how differences in work organizations in China, Germany, Japan and the USA affect wages in the automobile industry.

Findings

It is found that market forces play a more prominent role in Germany and the USA than in China and Japan and the difference is attributed to cultural, economic, political, and regulatory factors in each country.

Originality/value

This paper is one of the first that uses systematic data to conduct comparative analysis of labor relations in the automobile industry.

Details

Competitiveness Review: An International Business Journal, vol. 23 no. 2
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 7 June 2013

Ralf Drauz

The purpose of this paper is to exhibit the influencing factors on and the process of internationalization with regard to Chinese automobile companies.

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Abstract

Purpose

The purpose of this paper is to exhibit the influencing factors on and the process of internationalization with regard to Chinese automobile companies.

Design/methodology/approach

The author adopts an explorative approach to investigate the 12 major Chinese automobile manufacturers in terms of sales for the year 2010. Concentrating on the automobile industry in China, the author provides context and comparability.

Findings

The findings show that the internationalization of Chinese automobile companies cannot be explained by one theoretical model only and challenge previous internationalization research. Nevertheless, in retrospect, some patterns can be seen. Until the year 2000, technology was absorbed through domestic joint ventures with Western manufacturers. Up to 2010, internationalization involving exports may be viewed as having been a “test” phase, becoming a strategic goal defined by the Chinese government. Different internationalization attributes are aggregated into a comprehensive ranking of the case‐study companies. The ranking is analyzed with regard to managerial and company influences, as well as to incentivizing factors that potentially generate internationalization. As an incentivizing factor, the governmental environment plays a crucial role, having designated the automobile industry as one of China's pillar industries.

Originality/value

The paper gives new insights into internationalization processes on an industry level. In particular the Chinese strategic approach to internationalization is exhibited and discussed for the automobile industry.

Article
Publication date: 14 June 2022

Zheng Li, Tao Liu and Shuanping Dai

This paper aims to quest the strategies and paths of Chinese automobile firms for being world class. It analyzes their strengths and potentials in comparison with the development…

Abstract

Purpose

This paper aims to quest the strategies and paths of Chinese automobile firms for being world class. It analyzes their strengths and potentials in comparison with the development experience of the global examples and provides policy recommendations for cultivating world-class automobile firms.

Design/methodology/approach

The authors apply the analytic hierarchy process method to evaluate the competitiveness of automobile firms with multiple indicators.

Findings

The evaluation results suggest that Chinese automobile firms still lagged behind their world-class peers. Especially, Chinese domestic firms developed unevenly so that they could not make progress in the core parametric dimensions. Nevertheless, Chinese firms could achieve world class, at least in some niche segments, supported by its accumulated technological capacity and tremendous market size.

Originality/value

This research is the first scholarly work to evaluate the competitiveness of Chinese automobile firms and provides insightful comments on its industrial policies in the automobile industry. This may be valuable for policymaking in the automobile sector of China and other developing economies.

Details

Chinese Management Studies, vol. 16 no. 4
Type: Research Article
ISSN: 1750-614X

Keywords

Book part
Publication date: 10 July 2019

Jie Zhao, Jianfei Wang, Suping Fang, Huinan Zhang and Peiquan Jin

With the advance of the Silk Road Initiative proposed by China, it has been a focus of China government to develop strategic emerging industries. The development of strategic…

Abstract

With the advance of the Silk Road Initiative proposed by China, it has been a focus of China government to develop strategic emerging industries. The development of strategic emerging industries needs the support of competitive intelligence on many aspects such as strategical planning, policy making, industrial structure adjustment, and technology innovation. However, so far there are few studies toward the competitive intelligence systems for strategic emerging industries. In this article, we focus on a number of issues related to the competitive intelligence for strategic emerging industries in China. First, we conduct a strengths, weaknesses, opportunities, and threats analysis on the situations of strategic emerging industries in China, based on which the necessity of building a competitive intelligence (CI) service system for strategic emerging industries is discussed. Next, the authors present a framework of a CI service system for strategic emerging industries in China. The principles, components, working process, and product forms are deeply described. The CI service system proposed in this article consists of a cooperation network platform, three layered organizations, and three systems, which integrates organizations, information, people, network, and service platforms into an ecosystem to offer competitive intelligence supports for government, industry, and enterprises. Finally, the authors discuss a case study of the proposed CI service system for the new energy automobile industry.

Details

The New Silk Road Leads through the Arab Peninsula: Mastering Global Business and Innovation
Type: Book
ISBN: 978-1-78756-680-4

Keywords

Article
Publication date: 7 November 2016

Xiujie Wang, Jian Liu and Can Ma

The purpose of this study is that on the basis of the competitive edge theory, source mechanism and evaluation approaches of industrial cluster competitiveness, combined with…

2342

Abstract

Purpose

The purpose of this study is that on the basis of the competitive edge theory, source mechanism and evaluation approaches of industrial cluster competitiveness, combined with international trends in the automobile industry and the features of Chinese automobile industrial cluster development, an evaluation index system about cluster competitiveness of auto industry is built with comprehensive consideration of factors such as cluster development environment, external scale effect and internal competitiveness from the perspective of value chain of automobile industry.

Design/methodology/approach

An evaluation index system for automobile industrial cluster competitiveness was realized by integrating current strengths and future growth capacities with multidimensional, dynamic and comprehensive characteristics, which included 3 second-level, 10 third-level and 16 fourth-level indices. In the light of evaluation methods, a group intelligence optimization algorithm – (cuckoo search) – and traditional methods of complex decision-making system – analytic hierarchy process (AHP) – were combined to propose the cuckoo-AHP evaluation method. It was applied for the calculation and optimization of weight values in an automobile industrial cluster competitiveness evaluation index for the purpose of obtaining better scientific and more reliable results.

Findings

The research might further enrich the evaluation theory of automobile industrial cluster competitiveness and also can be useful for showing how traditional evaluation methods can be combined with intelligent algorithms to carry out better automobile industrial cluster competitiveness evaluations. In addition, studies of channels for kick-starting Chinese auto industrial cluster competitiveness are expected to provide references for how to enhance the cluster competitiveness of the Chinese automobile industry.

Practical implications

Changsha and Liuzhou, the Guangxi automobile industrial clusters as the two empirical analysis objects selected for this paper, are geographically adjacent to each other. The automobile industries of the two cities are local pillar industries with the strong support of the local government. Both clusters have their own advantages and weak points with different characteristics of cluster development, and they enjoy a representative significance amongst China’s numerous auto industrial clusters that are taking shape. Comparative analysis of both clusters serves as a good reference for the objective evaluation of the competitiveness of Chinese automobile clusters in terms of their real and practical developments and in respect of the success of reasonable scientific and industrial cluster policies.

Originality/value

Multidimensional, dynamic, integrated evaluation index systems are constructed around automobile industrial cluster competitiveness, which has taken into account developments in current strengths and future growth capacity. The cuckoo-AHP evaluation method has been formed by combining the traditional decision-making method known as AHP with a new meta-heuristic optimization algorithm called “cuckoo search”. Both have been used in evaluations of automobile industrial cluster competitiveness in Liuzhou and Changsha, which will be beneficial for enriching automobile industrial cluster competitiveness evaluation theory and new evaluation methods that will enable better evaluations of automobile industrial cluster competitiveness.

Details

Chinese Management Studies, vol. 10 no. 4
Type: Research Article
ISSN: 1750-614X

Keywords

Open Access
Article
Publication date: 31 December 2007

Jung Taik Hyun and Moon Joong Tcha

China has been the most important economic partner to Korea since the resurrection of their diplomatic relationship and economic interaction. It has been suggested that China

Abstract

China has been the most important economic partner to Korea since the resurrection of their diplomatic relationship and economic interaction. It has been suggested that China simultaneously presents challenges and opportunities to the Korean economy. This paper investigates changes in trade specialization patterns and comparative advantage of Korea and China, and analyzes the effect of market expansion of Chinese industries on market shares of Korean industries. It is found that since the early 1990s, the industries that lost market share as China’s share increased include those in which Korea has maintained a comparative advantage or improved the level of disadvantage, such as IT equipment and other transport equipments. Considering growth of trade flows and emergence of China, it is critical for Korea to actively participate in international production chains, create competitive edges and extend complementary relationship with trading partners.

Details

Journal of International Logistics and Trade, vol. 5 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

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

Content available
Article
Publication date: 1 March 2017

Grace Chun Guo, Crystal X. Jiang and Qin Yang

In recent decades many emerging markets (EMFs) have undertaken entrepreneurial transformations to adapt to institutional transition and industrial change. Corporate…

2157

Abstract

In recent decades many emerging markets (EMFs) have undertaken entrepreneurial transformations to adapt to institutional transition and industrial change. Corporate entrepreneurship (CE) provided EMFs viable ways to revitalize, reconfigure, and transform successfully with the dynamic environment. Although previous research examined government roles on EMFs' CE activities, little is known about the mechanisms of how government exerts influence on CE activities. To fully understand CE of EMFs, we propose a stage model to explore specific roles governments play that affect CE activities over time. In particular, we investigate how governments' grabbing hand, helping hand, and invisible hand roles affected Chinese auto firms' CE activities at different stages from 1980 to 2016. Government involvement is summarized and the advantages and disadvantages of these roles are analyzed.

Details

New England Journal of Entrepreneurship, vol. 20 no. 1
Type: Research Article
ISSN: 2574-8904

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