Strategy development for competitiveness: a study on Indian auto component sector

Abstract

PurposeThe purpose of this study is to analyse different aspects of competitiveness relating to the Indian auto component sector, set within a globalised economy with its attendant pressures and constraints. It examines the strategies adopted for quality improvement, cost reduction, investment and competency development. It also aims to establish the relationship between strategies and the different dimensions of competitiveness.Design/methodology/approachA questionnaire was used to collect the research data: 75 valid responses were received. Statistical analysis of data acquired from the survey was carried out by a reliability test, t‐test and correlation analysis.FindingsA growth‐supportive environment, raising funds from the market and a shortage of technical manpower are major constraining factors whereas cost, quality, and delivery time are the main pressures on the auto component sector. The auto component sector is flexible in developing strategies and those strategies relating to cost, quality; investment and competency development are significantly correlated with competitiveness.Research limitations/implicationsThis study could be further extended by considering other aspects of strategy development, such as human resource, vendor development, organization culture, etc.Practical implicationsOrganisations should make the necessary investment to develop new competencies, and should address cost reduction and quality improvement. They should also benchmark themselves against industry standards to sustain competitiveness.Originality/valueThis study will help organizations in shaping competitive strategies and in deciding dimensions of performance measurement.