Quality and innovation as drivers for manufacturing competitiveness of automotive parts suppliers

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
pp. 00-00
Author(s):  
Luz María Valdez-de la Rosa ◽  
Luis Alberto Villarreal-Villarreal ◽  
Gustavo Alarcón-Martínez
Keyword(s):  
Automotive Industry ◽  
Product Innovation ◽  
Manufacturing Sector ◽  
The State ◽  
Causal Relationships ◽  
Content Type ◽  
Tier 1 ◽  
Automotive Parts ◽  
Auto Parts ◽  
Parts Suppliers

PurposeThe 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/approachBased 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.FindingsThis 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/implicationsThe limitations of this paper are its focus on a single manufacturing sector, application in a single country and small sample size.Practical implicationsCompanies 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/valueAuto 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.

A holistic model of dynamic capabilities and environment management system towards eco-product innovation and sustainability in automobile firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samer Al-Shami ◽  
Nurulizwa Rashid
Keyword(s):  
Automotive Industry ◽  
Firm Value ◽  
Product Innovation ◽  
Management System ◽  
Social Impact ◽  
Dynamic Capabilities ◽  
Future Research ◽  
Content Type ◽  
Auto Parts ◽  
Micro Level

Purpose Environmental pollution has emerged as a major concern in the 21st century following the introduction of sustainable development (SD) by the year 2030, whereby one of the predominant goals is related to the manufacturing industry. In Malaysia, the automotive industry is acknowledged as the backbone driving for economic growth and recognised as a source of environmental deterioration. Therefore, eco-innovation is, thus, introduced as one of the efforts for minimised environmental effects, reduced social impact and firm value sustenance. In particular, eco-product innovation is one of the renowned environmental innovation dimensions and displays high adoption and diffusion rates in developed countries due to green awareness and government financial assistance. However, developing countries such as Malaysia show relatively low adoption of such practices amongst companies, whereby most of the efforts are driven by the governments, supplier and customer demands. Therefore, this paper aims to delineate the factors of voluntary initiatives undertaken by the Malaysian automotive and auto parts industry towards eco-product innovation. Design/methodology/approach The research drew from the micro-level perspective, thus using dynamic capabilities (DC) constructs and environmental management system (EMS) strategy variables. The constructs included technology collaboration, green human resources and eco-culture, while the variables denoted formal EMS and top management support. Survey data were obtained from 242 entities within the Malaysian automotive and auto parts industry, which were subjected to analysis via confirmatory factor analysis and structural equation modelling. Findings The findings revealed the moderating role played by eco-product innovation for the association linking EMS strategy and sustainability development, while no moderator effects were observed between DC and sustainability development. Thus, future research can be performed in the meso and macro-level areas by using qualitative research across different sectors. Originality/value This paper explicates novel literature content, particularly for the field of eco-product innovation; it positions an empirical analysis from the micro-level perspective regarding the antecedence of DC and environmental strategy towards eco-product innovation and SD, mainly in the automotive industry.

scholarly journals The mirage of upgrading local automotive parts suppliers through the creation of vertical linkages with MNEs in developing economies

2015 ◽  
Vol 11 (3/4) ◽  
pp. 301-318 ◽  
Author(s):  
Zaheer Khan ◽  
Yong Kyu Lew ◽  
Rudolf R. Sinkovics
Keyword(s):  
Technology Transfer ◽  
Automotive Industry ◽  
Value Chain ◽  
Multinational Enterprises ◽  
Developing Economies ◽  
Illustrative Case ◽  
Content Type ◽  
Vertical Linkages ◽  
Automotive Parts ◽  
Organizational Linkages

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.

scholarly journals Networking capability in supplier relationships and its impact on product innovation and firm performance

2017 ◽  
Vol 37 (5) ◽  
pp. 577-606 ◽  
Author(s):  
Maciej Mitrega ◽  
Sebastian Forkmann ◽  
Ghasem Zaefarian ◽  
Stephan C. Henneberg
Keyword(s):  
Firm Performance ◽  
Product Innovation ◽  
Relationship Development ◽  
Equation Modeling ◽  
Latent Classes ◽  
Supplier Relationships ◽  
Content Type ◽  
Relationship Initiation ◽  
Automotive Parts ◽  
Supplier Relationship

Purpose The purpose of this paper is to propose and empirically investigate the concept of networking capability (NC) for the management of supplier relationships and their dynamics in order to leverage product innovations. NC in the context of supplier relationships is conceptualized based on dynamic capabilities aimed at relationship initiation, relationship development, and relationship ending. Furthermore, the study tests the interaction of NC with relationship proclivity as an organizational feature, and analyzes latent classes of NC affecting product innovation. Design/methodology/approach This study brings together prior research on company routines related to inter-firm networking, the dynamic capability approach to strategy, and literature on inter-firm innovation. The study utilizes multiple informant survey data gathered from 156 firms operating in the automotive parts industry in Iran. Data are analyzed with partial least square structural equation modeling, as well as latent class analysis using finite mixture modeling (FIMIX-PLS). Findings This research provides evidence for the positive influence of NC with respect to supplier relationships on firm product innovation, as well as overall firm performance. Relationship proclivity is shown to amplify this effect. At the same time, the research illustrates that NC may be applied in different combinations in the context of supplier relationship portfolio management. Two mechanisms are tentatively identified: firms using “static optimization” focus mainly on supplier relationship development capabilities, while those using “dynamic optimization” utilize supplier relationship initiation and ending capabilities. Research limitations/implications This research focuses on one setting (i.e. the automotive parts industry in Iran). Further studies need to broaden these findings to other industries and countries, specifically those which show a different cultural make-up from Iran. Furthermore, this research indicates the existence of two distinct mechanisms as to how different aspects of NC impact product innovation. While it is reasonable to identify these mechanisms as networking “strategies,” this study does not clarify whether this represents intended strategies by firms or relates to emerging capability patterns. Practical implications The study contributes to managerial knowledge by illustrating the need for a dynamic approach with regard to networking-related routines in supplier relationships in the context of product innovation. This study suggests that managers should devote equal attention to strengthening existing supplier relationships as well as to initiating new supplier relationships (e.g. screening for promising partners and signaling firm’s relationship value to attract new counterparts) and managing non-performing supplier relationships (e.g. by developing routines to exit from those supplier relationships). Originality/value The paper contributes to a better understanding of dynamic approaches to networking with suppliers and their impact on product innovation from the perspective of the focal firm. It furthermore provides a fine-grained understanding of different latent classes of firms in terms of how they utilize networking capabilities.

Entrepreneur’s background and product innovation

2019 ◽  
Vol 18 (2) ◽  
pp. 153-169
Author(s):  
Natan de Souza Marques ◽  
Roberto Sbragia ◽  
Moacir de Miranda Oliveira Junior ◽  
Felipe Borini
Keyword(s):  
Logistic Regression ◽  
Product Innovation ◽  
Design Methodology ◽  
Positive Association ◽  
Emerging Economy ◽  
The State ◽  
Efficient Allocation ◽  
Academic Education ◽  
Content Type ◽  
Practical Implications

Purpose Analyzing the association between the entrepreneur’s background and product innovation, this paper aims to propose that some entrepreneur’s features are associated with the product innovation in incubated companies. Design/methodology/approach The study involved 95 technology-based firms incubated in Brazil. Questionnaires were sent to 461 technology-based incubated firms of the state, of which 112 have responded; however, only 95 met the established criteria, which was analyzed by logistic regression. Findings It was found that companies whose entrepreneurs have technical academic education closer to the Exact Sciences promote more innovation in products, regardless the size of their companies. In addition, in smaller firms, besides the technical background closer to the Exact Sciences, the entrepreneur's experience in the company also showed positive association regarding the intensity with which such firms innovate in products. Practical implications Results indicate that entrepreneurs who were selected taking into account their technical background closer to the Exact Sciences are more likely to contribute to the product innovation in their companies. Therefore, investing in their businesses will also increase the likelihood of success in the efficient allocation of the incubator resources. Originality/value The originality of this paper is reflected by the presentation of relations between entrepreneur’s background and product innovation in technology-based incubated firms in an emerging economy, highlighting the value of some characteristics of entrepreneur’s background to promote product innovation.

Disentangling resilience, agility and leanness

2018 ◽  
Vol 29 (1) ◽  
pp. 168-197 ◽  
Author(s):  
Maryam Lotfi ◽  
Soroosh Saghiri
Keyword(s):  
Structural Model ◽  
Performance Outcomes ◽  
Operational Performance ◽  
Content Type ◽  
Automotive Parts ◽  
Recovery Performance ◽  
Cost Efficient ◽  
Lean Operations ◽  
The Impact ◽  
Parts Suppliers

Purpose Regarding today’s volatile and turbulent markets accompanied by natural disasters and political upheavals, being resilient has become crucially important for many firms. It is widely accepted that the firm’s operations need to be cost efficient as well as customer responsive. Lean and agile have been proven to be pertinent strategies toward efficiency and responsiveness. But the operations also need to be resilient against disruptions to quickly return to their original state or even a better one. While the question of how leanness and agility impact operational performance outcomes has been researched, the question of how resilience can boost operational performance outcomes is yet to be investigated. The purpose of this paper is to show how resilience is distinguished from leanness and agility. It then examines the impact of resilience, along with leanness and agility, on operational performance outcomes. Design/methodology/approach A structural model is drawn up based on the literature to relate lean, agile and resilient practices to performance outcomes. Leanness, agility and resilience are measured through bundles of practices and operational performance outcomes are measured in terms of cost, quality, delivery, flexibility and time to recovery. The model is tested using SPSS 19 and AMOS 19 based on the data collected via survey from a sample of 151 automotive parts suppliers. Findings The results show that a higher level of resilience will lead to a better performance in terms of delivery, cost and time to recovery, while it does not have a significant impact on flexibility performance. Regarding leanness, the results confirm that lean operations positively affect cost, delivery and flexibility performances. The results also reject the hypothesis stating that higher level of leanness will lead to worse recovery performance, inferring that higher level of leanness leads to better time to recovery performance (i.e. helps time to recovery reduction). Originality/value The present research emphasizes the importance of operations resilience and demonstrates its contribution, alongside leanness and agility, to operational performance. The developed structural model contributes to the nascent theories around resilience, and the use of empirical data makes the results valuable practically. This may inform operations strategy decisions in terms of the results expected from resilience, leanness and agility.

Mastering innovation in the manufacturing sector

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Product Innovation ◽  
Manufacturing Sector ◽  
Service Innovation ◽  
Process Innovation ◽  
Manufacturing Companies ◽  
Content Type ◽  
Essential Condition ◽  
Digital Service ◽  
Positive Effects ◽  
Machinery Manufacturing

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on understanding the types of innovation that can boost the profit margins of manufacturing companies in Spain. Digital service innovation can be a welcome factor that meshes with product innovation and process innovation, to enhance profits within defined manufacturing sub-sectors – namely computer manufacturing and machinery manufacturing. These processes should be introduced and pursued simultaneously, as an essential condition for producing positive effects on profitability. In other sub-sectors, the digital service innovation isn't required, since this merely adds a neutral impact to the profit-driving effects of the effective duo of process innovation and product innovation. Originality/value The briefing saves busy executives, strategists and researchers’ hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Turkish electric car project will need foreign support

2018 ◽  
Keyword(s):  
Electric Motor ◽  
Joint Ventures ◽  
Manufacturing Sector ◽  
Commercial Vehicles ◽  
Passenger Cars ◽  
Content Type ◽  
Electric Car ◽  
Regional Production ◽  
Automotive Parts

Subject The plan for an indigenous electric car. Significance Existing joint ventures (JVs) have made Turkey a regional production centre for low-end passenger cars and light commercial vehicles (LCVs), but there is nationalist disquiet that they are produced under international brands. However, some say backing for producing an indigenous electric car from such a base may be just flag-waving. Impacts The project could help the development of a Turkish battery and electric-motor manufacturing sector. It could spur further growth in the automotive parts industry. Other sector developments could include legislation to allow driverless vehicles on Turkish roads.

Product innovation and cause-related marketing success

2014 ◽  
Vol 32 (2) ◽  
pp. 174-189 ◽  
Author(s):  
Michael Christofi ◽  
Demetris Vrontis ◽  
Erasmia Leonidou
Keyword(s):  
Conceptual Framework ◽  
Product Innovation ◽  
Success Factors ◽  
Theory Development ◽  
The State ◽  
Success Factor ◽  
Related Factors ◽  
Content Type ◽  
Academic Knowledge ◽  
Cause Related Marketing

Purpose – The purpose of this paper is twofold. First, the authors aim to identify all the product- and brand-related factors that promote cause-related marketing (CRM) success. The second part of this research aim is, to undertake a product innovation theory application into the context of CRM, examine the degree and nature of its theoretical and practical consonance, and develop an integrated conceptual framework for CRM success. Design/methodology/approach – The paper is conceptual and incorporates and interrelates the findings of existing CRM research as applied within the context of corporate social responsibility (CSR). Specifically this paper accumulates the state of prior wisdom on CRM success through the identification of several product- and brand-related success factors, based on a systematic review of the literature. In doing so, it introduces the concept of product innovation as a CRM success factor and integrates those distinct fields into a conceptual framework. Findings – The authors develop an integrative framework and a propositional inventory that represents a consolidated foundation for the systematic development of a theory for successful CRM strategies, along with the integration of product innovation within the field of CRM. Research limitations/implications – Towards this direction, the objective of this study is theory construction rather than theory testing. Thus, much work remains to be done in terms of empirically testing our research propositions. In conclusion, this paper posits a set of research directions designed to enable scholars to further advance the integration of product innovation and CRM from both problem-driven theory development as well as theory-driven practice management perspectives. Originality/value – The value of this paper accumulates the state of prior wisdom on CRM success, a notion with increasing use by corporations in recent years. Furthermore, this paper appears to be the first of its kind to examine, from the theorist perspective, the dynamics implied by synthesizing these, so far, distinct concepts. Additionally, the research adds appreciable value to academic knowledge on the fundamental discussion of the bidirectional relationship between CSR and innovation, also contributing an analogous CRM success framework to the existing wisdom.

Ethiopia's manufacturing sector is poised to expand

2016 ◽  
Keyword(s):  
Economic Growth ◽  
Financial Incentives ◽  
Manufacturing Sector ◽  
The State ◽  
Infrastructure Investment ◽  
Inclusive Growth ◽  
African Countries ◽  
Content Type ◽  
Ethiopian Government ◽  
Sustained Success

Subject Ethiopia industrialisation. Significance The Ethiopian government is pursuing a strategy to expand the country's manufacturing base. Growth in export-oriented manufacturing is vital for sustained economic expansion that also could drive inclusive growth for a burgeoning population demanding economic opportunities. Impacts State-led infrastructure investment will drive economic growth. The state will continue offering generous loans and financial incentives to attract export-oriented investors. Sustained success could spur other African countries and investors to identify alternative manufacturing bases.

scholarly journals Analysis of the Relationship between Automaker and Systemist in an Industrial Condominium of the Automotive Industry

2008 ◽  
Vol 1 (2) ◽  
pp. 41 ◽  
Author(s):  
Mário Sacomano Neto ◽  
Sílvio Roberto Pires
Keyword(s):  
Automotive Industry ◽  
Added Value ◽  
Auto Parts ◽  
High Degree ◽  
The Relationship ◽  
Parts Suppliers ◽  
The Way

The implementation of industrial condominiums in Brazil's automotive industry introduced a new standard for the relationship between automakers and auto parts suppliers. High levels of outsourcing, long-term contracts, integrative agreements, coproduction of components, exchanges of specific resources, and intensive interchange of information characterize the automaker's relationship with suppliers in these new arrangements. This paper analyzes the relationship between an automaker, constituted in the form of an industrial condominium, and a systemist supplier operating inside the automaker's plant, exploring the impacts and innovations in the way production is organized and in how the supplier's performance is measured. The findings reveal the transfer of added value from the automaker to the systemist supplier and a high degree of integration of logistics and production between companies

Sign in / Sign up

Export Citation Format

Share Document