Chinese Automobile Manufacturers Research Articles

The relationship between dynamic capabilities and global value chain upgrading: the mediating role of innovation capability

PurposeThis study examines how dynamic capabilities (DCs) impact global value chain (GVC) upgrading and assesses the mediating role of innovation.Design/methodology/approachThe study uses a quantitative research method. The data are collected using an online questionnaire administered to respondents working in Chinese automobile manufacturers in China and Laos. The data are analyzed using structural equation modeling (SEM) and related software.FindingsThe results show that DCs and innovation capabilities (ICs) positively affect GVC upgrading and that ICs plays a mediating role between DC and GVC upgrading. Dynamic capabilities evolution (CE) mediates the relationship between DCs, ICs and GVC upgrading. Finally, differences exist in the effects of the three dimensions of DCs on ICs and GVC upgrading.Practical implicationsFocusing on the absorption and transformation of knowledge, enterprises could experience a clear enhancement of IC and CE and be more likely to obtain higher marginal returns. The study provides insights for emerging market firms to gain higher added value in internationalization.Originality/valueThis study demonstrates that different dimensions of DCs have different effects on GVC upgrading. In terms of theory, the impact of IC is considered in terms of the mediating effect of CE on IC. Differences are highlighted concerning the impact of learning capability, integrating and coordinating capability and sensing capability on the mediated relationships.

Research on the Digital Transformation Business Model of the Automobile Manufacturing Industry

With the implementation of Internet Plus and Made in China 2025 plans, Chinas digital technology has developed rapidly, and the transformation to a digital direction is imminent for Chinas manufacturing industry. In response to the national strategic deployment, many automobile enterprises have begun to carry out digital transformation. This article selects three representative Chinese automobile manufacturing enterprises and studies their business models through case analysis. This paper summarizes automobile enterprises' digital transformation business model from six aspects: product production, user service, marketing methods, and business processes. This paper has promoted the theoretical development of the digital transformation of the manufacturing industry, especially the automobile manufacturing industry. At the same time, it provides practical business model suggestions for the digital transformation of Chinese automobile manufacturing enterprises.

Location of Chinese automobile manufacturing enterprises and influencing factors

Location of Chinese automobile manufacturing enterprises and influencing factors

Study on the Growth Driving Model of the Enterprise Innovation Community Based on the Lotka–Volterra Model: A Case Study of the Chinese Automobile Manufacturing Enterprise Community

The goal of this paper is to establish a feasible three‐species equilibrium model to analyze the symbiotic relationship of an automobile manufacturing community. In order to extend the Lotka–Volterra model to empirical analysis, this paper proposes an enterprise community symbiosis model based on a three‐dimensional Lotka–Volterra model, as the classical two‐dimensional Lotka–Volterra model has limited application scenarios. This paper takes the innovation assets of three communities of the Chinese automobile manufacturing industry as samples. The industrial community related to automobile manufacturing consists of the automobile manufacturing population, automobile parts population, and enterprise service industry population. The symbiosis system is empirically analyzed from two aspects: the balanced development of the three populations and the competitive evolution of the three populations. The stability of the model is tested by the data from information technology and the intelligent manufacturing community. In the process of dynamic simulation, the symbiotic relationship between automobile manufacturing‐related populations shows a significant “skew symbiotic relationship.” This paper reconstructs the “whole population symbiosis” optimization model as skew distribution is difficult to apply to support collaborative development. The symbiosis optimization under the equilibrium state of the three populations shows that the growth of the three automobile manufacturing industry populations has the possibility of equilibrium and reciprocity. The empirical analysis fully demonstrates the feasibility of this research paradigm. The evolution analysis of the symbiotic system shows that cooperative behavior is better than competitive strategy. The research paradigm proposed in this paper can better analyze the symbiosis mechanism of the enterprise community.

Research on International Mutual Recognition of Carbon Certification System of Automobile Products

With the global attention to climate change gradually heating up, to carbon peak carbon neutralization as the theme of the new international trade system is gradually taking shape, will also have a broad and far-reaching impact on our foreign trade pattern. The automobile industry is the key to transportation in our country carbon industry, in response to climate change under the situation of double carbon targets, for car carbon product certification international mutual recognition research is not only beneficial to China's auto industry to establish a comprehensive carbon accounting system but can also help our country automobile industry breakthrough carbon tariff barriers to trade actively, Promote Chinese automobile manufacturing industry to complete green and low-carbon transformation.

The Influence of Low Carbon Emission Engine on the Life Cycle of Automotive Products: A Case Study of Three-Cylinder Models in the Chinese Market

There is a development trend for fuel vehicles to adopt low-carbon emission engines. The sales of cars with low-carbon three-cylinder engines in the Chinese market have declined. Is the life cycle of automotive products with three-cylinder engines entering a recession stage? In order to achieve this research objective, which is to investigate whether assembling a three-cylinder engine affects the life cycle of an automotive product, this paper constructs an ecological theory-based approach to measuring the life cycle of automotive products. First, the logistic model is used to measure the intrinsic growth rate, internal inhibition coefficient, and theoretical upper limit of product sales scale before and after the automotive products are equipped with three-cylinder engines. In the second stage, the Lotka–Volterra model is used to calculate the intrinsic growth rate, internal inhibition coefficient, theoretical upper limit, and symbiosis coefficient of the sales scale of the products before and after the three-cylinder engine, taking the Chinese automobile manufacturing enterprises as an example for empirical analysis. The research results show that the selection of three- cylinder engine for automotive products will not lead to the product life cycle entering the recession period ahead of time.

Research on the Connotation, Influencing Factors and Promotion Strategy of Automobile Brand Premium

With automobile sales, market share also tends to stabilize. The growth rate of automobile sales is gradually decreasing. At the same time, the goal of maintaining high profits for automobile manufacturers is difficult to achieve only by "car production." As a component of brand equity, a brand premium has become essential for automobile manufacturers to improve profitability—the direction of development. Currently, the connotation and influencing factors of brand premium are still controversial in academic circles, and there are few particular kinds of research on brand premium in the automobile sales market. This paper takes the automobile industry as the research object and profoundly explores the concept and influencing factors of brand premium. On this basis, it proposes targeted suggestions for automobile manufacturers to improve their brand premium capabilities to encourage Chinese automobile manufacturers to achieve faster transformation and upgrading of industrial structure.

Research on Culture Development Strategy of Sino-foreign Joint Venture Automobile Manufacturing Enterprises

Automobile manufacturing enterprises develop fast, focusing on hardware upgrading, quality control and other issues to implement innovation as well. However, looking back on its steady development, its deep “Soft strength”is even more essential in addition to the need to have“Hard strength”. Construction of enterprise culture has become an important way to support enterprise management and become one of the core competitiveness of sustainable development of enterprises. The lag of company culture development is an essential factor that hinders its sustainable development for large sino-foreign joint venture automobile manufacturing enterprises. Corporate culture construction is a systematic, long-term and continuous internalization process. Excellent corporate culture can lead the development of the enterprise continuously, and also can Down to Earth the reality of the enterprise Combined with the new characteristics and problems in the development of Chinese automobile manufacturing enterprises. This paper conducted an in-depth research on the current situation, existing problems and primary cause of the culture construction of SGMW. The optimizing strategy of SGMW culture development is analyzed combining with new development tendency of sino-foreign joint venture automobile manufacturing enterprises and the corresponding requirement of culture progress. This paper proposes the culture construction localization strategy in terms of spirit, system and behavior culture, in order to provide reference and reference for more automobile manufacturing enterprise culture construction.

Standardization Alliance Networks, Standard‐Setting Influence, and New Product Outcomes*

Standardization alliances evolve through collaborations among firms for developing and implementing industry technical standards. Cooperative standard setting can help allied firms to gain access to external knowledge and technologies, but it is unclear how the configuration of a standardization alliance can result in improving a firm’s performance in new product development. This study examines how standardization alliance network‐based resource advantages vary across a firm’s network position and the firm’s ability to influence industry standard setting and new product outcomes. Empirical analyses, based on archival data from 170 Chinese automobile manufacturers from 1999 to 2013, indicate that firms that span structural holes in standardization alliance networks gain an advantage when focusing on early new product introductions but suffer a disadvantage when aiming at more innovative products. In contrast, taking a central position in standardization alliance networks is negatively related to a firm’s speed in bringing new products to market but positively related to the firm’s new product introduction rate. Further, standard‐setting influence significantly mediates the effect of network position on a firm’s new product speed to market. Increasing centrality and structural holes can lead to the improvement of a firm’s standard‐setting influence, and this, in turn, positively affects speed to market.

An approach to reengineering applied to control of container logistics cost using the PERT network

With the development of society and the advancement of science and technology, Chinese automobile manufacturers are struggling with increasingly intense competition in the market. To earn a place in the industry and improve brand competitiveness, many companies are beginning to focus on the logistics of cost control, such that the whole supply chain cost is at its lowest when the value is at its highest, as this is the key to the future survival and development of China's automobile industry. As an example, this paper uses the container transport of Changan Ford auto parts logistics, and based on the cost analysis derived from the program evaluation and review technique (PERT), the existing transport process is reengineered. Through the comparison of the costs before and after the transformation and the sensitivity analysis based on the reengineered process, it is determined that the reengineered process is superior to the initial process and exhibits strong practical guiding significance for logistics cost control and the development of China's automobile companies.

An approach to reengineering applied to control of container logistics cost using the PERT network

With the development of society and the advancement of science and technology, Chinese automobile manufacturers are struggling with increasingly intense competition in the market. To earn a place in the industry and improve brand competitiveness, many companies are beginning to focus on the logistics of cost control, such that the whole supply chain cost is at its lowest when the value is at its highest, as this is the key to the future survival and development of China's automobile industry. As an example, this paper uses the container transport of Changan Ford auto parts logistics, and based on the cost analysis derived from the program evaluation and review technique (PERT), the existing transport process is reengineered. Through the comparison of the costs before and after the transformation and the sensitivity analysis based on the reengineered process, it is determined that the reengineered process is superior to the initial process and exhibits strong practical guiding significance for logistics cost control and the development of China's automobile companies.

The Competitiveness of Chinese Automobile Manufacturers

The Competitiveness of Chinese Automobile Manufacturers

Why employees stay: the roles of psychological ownership, territoriality and work relationship closeness in affecting employee turnover intention

Drawing on a tripartite perspective on attitudes, this study examines the influence of psychological ownership and territoriality on turnover intention, as well as the moderating role of work relationship closeness on the relationship between territoriality and turnover intention. Analyses of longitudinal data collected from 341 employees in three Chinese automobile manufacturing companies demonstrate that employees’ psychological ownership is negatively related to their turnover intention. As well, territoriality is negatively related to turnover intention and mediates the relationship between psychological ownership and turnover intention. Additionally, work relationship closeness moderates the relationship between territoriality and turnover intention such that the negative relationship is stronger when employees experience a higher level of work relationship closeness. Theoretical and practical implications are discussed.

Chery Automobile

Chery, which used to be the leader of Chinese indigenous automobile manufacturers as well as the entry-level market, has been losing its leader position since 2010. Chery, founded in 1997, has experienced a radical expansion along with industrial liberalization and economic growth in China since 2000. In 2007, Chery started the internationalization strategy by launching two middle and high-end brands and developing a series of joint ventures consecutively. However, Chery has confronted various challenges since 2010 with the growing maturity of Chinese automobile industry, including declining domestic sales and market share, and thus was in a weak position under attack. Finally, Chery announced its tactical adjustments in April 2013. This case describes the co-evolution between the environmental transitions of Chinese automotive industry and the business strategies of Chery. Students are asked to analyze the development of Chery and provide specific suggestions of future directions on competitive strategy for Chery.

Strategies and Factors Affecting China’s Auto Industry Investment in Iran After Lifting the Sanctions

In recent years, the presence of Chinese vehicles in the streets of Iran has become more remarkable. Although, the Chinese automotive products are more elegant than Iranian ones, their quality is still criticized by Iranian consumers. However, due to the absence of major automobile manufacturers in past, the Chinese have used the opportunity of Iran’s sanctions and have taken the Iranian market. After lifting the economic sanctions on Iran, the government first attempted to negotiate with European automobile manufacturers to invest and import products to Iran. This is a difficult situation for Chinese automotive manufacturing companies which considered Iran as one of the largest automobile markets. Now, the questions are: what will be the situation of Chinese automotive manufacturing companies in Iran after lifting the sanctions? What factors will guarantee the continued presence of Chinese automobile manufacturers in post-sanctions era, compare to other competitors? Due to the presence of Chinese automobile manufacturers in Iran before lifting the sanctions, now with the lifting of sanctions and return to a normal situation, what changes are needed for Chinese automobile manufacturers? What do Iranians expect in the new situation after the lifting of sanctions? The authors by a descriptive-analytical method try to explain the situation of Chinese Automobile manufacturers companies in Iran and believe that now the Chinese must improve the quality of their goods.

How does knowledge network affect a firm’s explorative innovation? The contingent role of R&D collaborations

ABSTRACTInnovation is a process of knowledge recombination [Fleming, L. 2001. “Recombinant Uncertainty in Technological Search.” Management Science 47: 119 p]. Extant literature highlights the importance of a firm’s knowledge base for innovation, while little is known about the structure of a firm’s knowledge base and how it affects the firm’s explorative innovation. Based upon the perspective of network analysis, we portray a firm’s knowledge base as an intra-organisational knowledge network and examine the effects of two structural features of the network – density and centralisation – on the firms’ exploratory innovation. Using a manual collected dataset of 738 Chinese automobile manufacturers, we find that a firm explores fewer new knowledge elements when the firm holds a dense knowledge network or a centralised knowledge network. More importantly, with the increase of a firm’s R&D collaborations with external actors, the negative effect of density is mitigated while the negative effect of centralisation is reinforced. Both theoretical and practical implications are discussed.

A Cross-Country Comparison of Performance of Chinese and Indian Automobile Companies

Globalisation has led to a relocation of automobile manufacturing into new regions, allowing a number of emerging markets to achieve tremendous growth in automobile production and sales during the last decade. Automakers in China and India are the main beneficiaries of this shift in global automobile industry as both countries were able to increase their market share tremendously on the back of cost leadership strategy and abundant foreign direct investment (FDI). These two countries are now the fastest growing producers of automobiles in the world and accounted for almost quarter of the world’s total automobile production in 2010. This study aims to examine the operational and financial performance of the four largest automobile manufacturers in China and India through an analysis based on accounting ratios. The results of the study show that despite the fact that Indian firms have given considerable competition in recent years, Chinese automobile manufacturers have outperformed their Indian counterparts in profitability, inventory management, liquidity and solvency. This study also identifies some critical factors such as profit margin management and cost control that Indian automobile manufacturers need to address in order to outpace Chinese Automobile manufactures in the future.

Demand Heterogeneity, Learning Diversity and Innovation in an Emerging Economy

Abstract Prior research has shown mixed findings about the relationship between exporting and a firm's innovation performance. This study applied organizational learning theory with a demand-side perspective to explore whether the mixed findings could be due to confounding a positive effect of knowledge variety with a negative effect arising from market separation. Compared with firms with only domestic or foreign customers, firms with both types of customers have more opportunities to acquire diverse knowledge and form innovative combinations, but serving disparate customers tends to inhibit knowledge transfer, sharing and integration. Data on 8529 Chinese automobile and component manufacturers were analyzed to test these arguments, and firms competing in less separated domestic and overseas markets were found to demonstrate the best innovation performance. Firms with greater absorptive capacity were found better able to overcome the difficulties caused by market separation and enjoy more benefits from market variety.

Integrated evidential reasoning approach in the presence of cardinal and ordinal preferences and its applications in software selection

A combination of cardinal and ordinal preferences in multiple-attribute decision making (MADM) demonstrates more reliability and flexibility compared with sole cardinal or ordinal preferences derived from a decision maker. This situation occurs particularly when the knowledge and experience of the decision maker, as well as the data regarding specific alternatives on certain attributes, are insufficient or incomplete. This paper proposes an integrated evidential reasoning (IER) approach to analyze uncertain MADM problems in the presence of cardinal and ordinal preferences. The decision maker provides complete or incomplete cardinal and ordinal preferences of each alternative on each attribute. Ordinal preferences are expressed as unknown distributed assessment vectors and integrated with cardinal preferences to form aggregated preferences of alternatives. Three optimization models considering cardinal and ordinal preferences are constructed to determine the minimum and maximum minimal satisfaction of alternatives, simultaneous maximum minimal satisfaction of alternatives, and simultaneous minimum minimal satisfaction of alternatives. The minimax regret rule, the maximax rule, and the maximin rule are employed respectively in the three models to generate three kinds of value functions of alternatives, which are aggregated to find solutions. The attribute weights in the three models can be precise or imprecise (i.e., characterized by six types of constraints). The IER approach is used to select the optimum software for product lifecycle management of a famous Chinese automobile manufacturing enterprise.

A Study of the Chinese Automotive Internationalisation Strategy - A Case Study of Geely Automobile -

What is Geely’s growth strategy and internationalisation level? The main aim of this paper is the analysis of the Chinese automotive internationalisation strategy as a case study of Geely Automobile. China become the largest auto market in the world after the USA since 2009; China"s automobile industry has been in rapid development since early 1990s.<BR> Geely one of China’s top ten auto manufacturers and also among the country’s top 500 firms. The pattern of Chinese automobile industry is supported by the multinational corporations. But Geely (Chery and BYD) is quite special, it has no technology and no cooperative foreign company. Geely has its "own brand" which has been the three big state automobile companies’ wish for many years.<BR> The progress of Geely’s internationalization has began, but is at a initial, but progressing based international standards. However Geely’s rising rate of domestic sale and exportation is quite astonishing, since 1997, when Geely was newly founded, Geely sold 483,000 automobiles, placing it 8th on the list of Chinese automobile manufacturers in 2012. Thus Geely became one of the leading Chinese automobile manufacturers. Geely is the first independent and largest private automobile manufacturer in China. In 2009, Geely acquired Volvo Cars for $1.8 billion from Ford Motor Company. Geely brought 100% stake in Volvo, as well as the related assets (including intellectual property), using this technology to make its own upgraded brand.<BR> Geely"s growth strategy is characterised as active internationalisation, establishing its own brand and differentiation, diversification of exports market and market entry modes from exports and FDI, and M&A strategies. In this paper, Section II analyses the growth strategy of the of Geely Automobile. Section III examines the Geely"s M&A strategy of Volvo, Manganese Bronze, and DSI. Section V provides some concluding remarks.