Regional automobile parts makers' competitive advantages analysis

Abstract

This paper presents a comparative analysis study between Asian and North American automobile parts markers' perspective on competitive advantages. To undertake this task, the study introduced supply chain cooperation, risk ranking and business risk management in a three phase competitive advantages model adopted from the Barney (1995) model (with slight differences). Smart PLS 3.0.was employed to analyse data. In this survey, Asian companies accounted for 60% of the responses while the remaining 40% were from North America. Both Asian and North American companies highlighted the importance of resources availability (big company size) in organising the supply chain network. Asian companies indicated that supply chain cooperation significantly affects competitive advantages while the North American ones did not record any significant relationship. Finally, North American companies indicated that business risk management is crucial in attaining competitive advantages while their Asian rivals did not consider that vital.