Component Suppliers Research Articles

Understanding after-market service channel selection for complex product-services supply chains: A game-theoretical approach

Today, cooperation between an OEM (Original Equipment Manufacturer) of Complex Products and Systems (CoPS) and her multiple Key Component Suppliers (KCSs) is characterized by a strategic partnership where long-term benefits are sought for both parties. Since CoPS after-market service can be provided by the KCS, the OEM, or an MRO (Maintenance, Repair, and Overhaul) party, different after-market service channels can be established. In this paper, we model each of these channels using game theory, compare their main features, and discuss the selection of the optimal after-market service channel. We show that the duration of the after-market service is not influenced by the service channel if the service cost remains constant. If the after-market service costs are equal for all parties, each party would prefer the other to perform the service. In the case of different costs, both the cost of the service and potential market size have the same effect on the OEM’s preference for the after-market service channel as on the CoPS ordered quantities. Furthermore, OEM and KCS after-market service channel preferences depend on market size, and “win-win” situations are discussed for the different channels, along with their impact on the long-term stability of the strategic partnership between KCS and OEM. Finally, a sensitivity analysis is carried out to examine the impact of several key parameters. The results presented in the paper serve to deepen the understanding of complex product-service systems and offer a number of managerial insights to select an appropriate after-market service channel for KCSs.

Resources, Training, and Education Under the Heliostat Consortium: Industry Gap Analysis and Building a Resource Database

Abstract Concentrating solar power is not a widely deployed or known technology area, and the heliostat workforce community in the United States is currently small, with knowledge and expertise not widely available. The resource, training, and education (RTE) topic within the Heliostat Consortium (HelioCon) was established to address this. RTE encompasses resources, practices, and programs to ensure that (1) newcomers to the heliostat development community have an adequate knowledge base and training to conduct R&D efforts, (2) outsiders to the field are provided with resources and opportunities to join the workforce, and (3) the workforce community is a productive, healthy, and fulfilling environment for all workers. In the first year of the project, a roadmap study was conducted, in which the major gaps in RTE were identified by consulting experts in the industry, with the top gap being the lack of public accessibility to concentrating solar-thermal power (CSP) knowledge. To address this, the HelioCon team has been developing a centralized web-based resource database, containing a reference library, educational videos, lists of components suppliers and software/metrology tools, a power tower plant database, and information on existing standards/guidelines.

Involving lead users in firm’s standardization strategy within action groups: evidence from smart robotics

PurposeThis research explores how firms manage the complex technologies standardization in action groups. It considers the strategic issues that technology producers face when involving lead users in architecture design. Drawing on the multi-mode standardization literature, this study addresses two dilemmas regarding value creation and appropriation by technology producers within coalitions. The first dilemma is how to create value by developing solutions in compliance with industry standards. The second one is how to appropriate value while ensuring the technology sharing with action groups. The answers to these two dilemmas contribute to filling the research gap on value creation and appropriation in multi-mode standardization.Design/methodology/approachThe research focuses on technology producers participating in action groups where lead users play a crucial role. We conducted a qualitative analysis based on the standardization experience of a Japanese company specializing in smart robotics. Data are collected through semi-structured interviews with key actors. Action groups are defined operationally as a set of stakeholders including competitors of the technology producers, component suppliers, end users, services providers, research centers and academia. The case study is suitable for highlighting specific aspects of the standardization process during its manifestation. It reveals how firms create and appropriate value, providing details about its standardization strategy.FindingsOur findings show that smart robotics standardization is drivn by collaborative models, where the two dilemmas of value creation and appropriation are evident. Firstly, the case revealed that standardization is lead users oriented. Secondly, lead users’ involvement is crucial to customize technologies. Thirdly, the firm’s position is to share a part of the value with the members. The IPR policy is a matter of interest within action groups, since the collaboration is based on open innovation models to share patents and licenses related knowledge.Research limitations/implicationsThis research has some limitations attributable to the limited generalizability of the results due to the qualitative analysis. In addition, this study considers the perspective of technology producers, but should also take into account the perspective of both collective actions itself and the lead users. Findings have some implications in the strategy negotiation. Participating in action groups is not enough to ensure a competitive advantage. Involving lead users is of strategic importance to acquire a competitive advantage. Lead users contribute to the producers’ technology design, helping firms to differentiate solutions from the industry standard and create value from customized technologies.Practical implicationsThis study helps practitioners understand the competitive side of collective actions, clarifying the value capture and appropriability in standardization. The research provides insights to policymakers and standard development organizations committees when they are called to harmonize standards considering the fallouts on the sector’s competitiveness. Findings suggest appropriate property rights policies to manage the issues related to the value appropriability and technology sharing, recognizing action groups members for their contribution in value creation.Originality/valueThis study shows how firms deal within action groups with the two dilemmas of variety versus technology conformity and property rights versus technology sharing. It fills the research gap in collective actions, emphasizing the perspective of the individual firm in the group rather than the coalition strategy itself. This topic highlights the crucial role of lead users within action groups in managing the two dilemmas, offering a new perspective for understanding critical issues of multi-mode standardization. Reflecting on mechanisms and tools to manage the two dilemmas allows firms to protect their competitive advantage in coalitions.

Import substitution of elevator equipment in public procurements: problems and directions of stimulation

The problem of import substitution is relevant for any country, taken into account the requirements of its economic self-sufficiency, independence on the situation at the international markets and on geopolitical changes. For Ukraine in the state of full-scale war, this task is important from the viewpoints of economic resilience and security. For this reason, the Government determined the substitution of import components in public procurements as one of the priorities of its activity. Solving this problem will be important for the projects associated with the procurement for the recovery of infrastructure in post-war period. The sector of elevator equipment production has a significant industrial potential for the post-war recovery of infrastructure in Ukraine. Extension of industrial capacity of this segment of machine building in order to cover the domestic market requirements in post-war recovery period will enable new job creation and will provide a multiplicative effect based on the development of complementary suppliers of production components. However, a number of problems prevents Ukrainian elevator equipment producers from winning in public procurements. The goal of the article is to substantiate the reasonability and to determine the directions and stimulating measures for elevator equipment import substitution in public procurements in Ukraine. The market of elevator equipment of Ukraine has been analyzed. The capacity of Ukrainian elevator equipment producers to compete at the domestic market has been assessed based on price, warranty terms, cost of warranty service, and quality of equipment. Public procurement of elevator equipment and maintenance services in “Prozorro” system has been studied. It was found that about 70 % of public procurements of elevator equipment account for the purchases of imported equipment from Turkey and China. The problems of domestic producers of elevator equipment preventing them from winning the public procurement have been explained. The multiplicative effect from the increase of public procurements of elevator equipment from national producers has been assessed. This proves the reasonability to stimulate import substitution of elevator equipment in public procurements. The directions and measures of elevator equipment import substitution stimulation in public procurements in Ukraine have been suggested.

Net-zero life cycle supply chain assessment of heat pump technologies

In this study, a comparative life cycle assessment of different heat pump technologies based on multiple supply chain scenarios according to the UK market has been conducted. In addition to conventional heat pumps – air-source heat pump (ASHP), ground-source heat pump (GSHP), and water-source heat pump (WSHP) - a novel hydrogen-source heat pump (HSHP) has been studied from an environmental aspect. Different supply chain scenarios have been developed for all technologies based on the leading supplier of heat pump components in the UK. Results showed that the manufacturing and operation of heat pumps are the main causes of the environmental impacts. Among the four technologies studied, ASHP had the highest negative environmental impacts across most categories. HSHP stands out with notably lower carbon emissions compared to other cases. However, in certain impact categories, HSHP exhibited more significant consequences, especially concerning land use and land-related pollution. Regarding CO2 emissions, ASHP is projected to achieve the most substantial reduction, with expected reductions of 23 %, 60 %, and 97 % by 2030, 2040, and 2050, respectively. GSHP, WSHP, and HSHP are also predicted to experience significant CO2 emission reductions of 94 %, 95 %, and 59 % by 2050, aligning with the UK's net-zero goal.

Russia in the system of functioning models of the modern world market for arms and military equipment

In the context of modern geopolitical conflicts, which have led to complications in the international trade and investment cooperation between countries, there are serious changes in the positions of states in the global export of arms and military equipment (hereinafter referred to as AME). Structural transformations in the international exchange of the AME are also conditioned by the clash of economic interests of individual countries due to globalisation of recent decades as well as by the use of various models of production and export of the AME at the national level. As shown in our article, states of the world are seriously differentiated in their own production of the AME according to the degree of their dependence on imports and foreign suppliers of components and technologies. The fact that countries can be advanced participants in the technological chain or be niche suppliers determines new directions for their international specialisation and, largely, the rules and nature of competition in the modern AME market. As part of the presented analysis of the national specialisation models of states, the competitive advantages and weaknesses of Russia as one of the leading arms exporters in the world are shown. At the same time, the foreign policy and economic risks of strengthening its position in the global AME trade have been assessed. Based on the results of the study, directions for reinforcing the potential of the Russian military-industrial complex in the world AME market have been formulated.

Application of Technological Procedure Automated Guided Vehicles in the Production Hall of a Company Due to Increasing the Automation—Case Study

This paper discusses the possibility of deploying automated guided vehicle (AGV) technology in a company’s production hall. Chronometric measurements of material handling and people handling were performed. The handling processes were divided into five sub-processes, which were analysed in terms of production line operation, distance, and carrying capacity of the automated guided vehicles. Based on the measurements, we found that it was necessary to use four vehicles for handling in the foam production hall. The company is applying this automation project to foams, and after successful testing, plans to continue with automation for leather upholstery. To ensure the correct chronometric results, we measured the distances between each workstation on the production floor at the company. Based on an analysis of material handling on the production lines, we evaluated that there is a possibility of applying AGVs on the entire production floor. We analysed the volumes of material transfer and the possibilities of interconnection within the existing material handling in the enterprise. Complications arise when deploying AGVs in the plant because the handling to the production lines is not only provided by the parent company, but also by the component suppliers themselves. Based on this observation, we have identified potential collision points within the operation between automated guided vehicles and other material handling equipment or people. For this reason, we deployed one more AGV on the handling routes to prevent unwanted collisions. This means that a human would be able to perform even more processes than a machine and can circulate 80 times, where a machine under the same conditions would only perform the entire circulation 57 times. There is room here to use humans for other processes and to automate the handling of goods, although it introduces delays that can be eliminated by deploying additional automated guided vehicles. This opens room for further research questions on how these vehicles can be deployed, even in a small space, and how existing material handling can be automated.

Optimalisasi Pemilihan Supplier Komponen Fabric pada Produk Man Shirt X Menggunakan Metode Analytical Hierarchy Process

PT. ABC is a company engaged in the production of ready-to-wear clothing. The main raw materials use fabric from various suppliers. The problem is the poor quality of the fabric raw materials and late delivery from suppliers, which has an impact on production optimization. Supplier selection is a strategic activity, especially if the supplier will supply critical items and be used in the long term. Good raw materials will produce good products. Choosing the right supplier can provide benefits for the company so that the production process runs smoothly. This study aims to determine the best supplier according to the specified criteria using the Analytical Hierarchy Process (AHP) supplier selection method in the selection of fabric component suppliers at PT. ABC. Supplier selection uses the AHP method with subjective assessment input from the company. The expectation of the final result can determine the ranking of alternatives so that it produces the best supplier based on criteria that are in accordance with the company. Based on the results of processing using the AHP method, the order of criteria obtained is quality (0.6554), delivery (0.1867), and price (0.1577). The alternative selection of raw material suppliers with the highest priority is supplier X with the best score of 1.358. This shows the most optimal supplier value in fulfilling the needs of fabric raw materials according to the criteria required by the company.

Optimalisasi Pemilihan Supplier Komponen Fabric pada Produk Man Shirt X Menggunakan Metode Analytical Hierarchy Process

ABC is a company engaged in the production of ready-to-wear clothing. The main raw materials use fabric from various suppliers. The problem is the poor quality of the fabric raw materials and late delivery from suppliers, which has an impact on production optimization. Supplier selection is a strategic activity, especially if the supplier will supply critical items and be used in the long term. Good raw materials will produce good products. Choosing the right supplier can provide benefits for the company so that the production process runs smoothly. This study aims to determine the best supplier according to the specified criteria using the Analytical Hierarchy Process (AHP) supplier selection method in the selection of fabric component suppliers at PT. ABC. Supplier selection uses the AHP method with subjective assessment input from the company. The expectation of the final result can determine the ranking of alternatives so that it produces the best supplier based on criteria that are in accordance with the company. Based on the results of processing using the AHP method, the order of criteria obtained is quality (0.6554), delivery (0.1867), and price (0.1577). The alternative selection of raw material suppliers with the highest priority is supplier X with the best score of 1.358. This shows the most optimal supplier value in fulfilling the needs of fabric raw materials according to the criteria required by the company.

Strategic Choices of General Contractors in the Context of China’s Industry Chain of Construction Industrialization

Amidst the challenges of economic downturn and construction industrialization, the profits obtained by general contractors through comparative advantage strategies are slowly decreasing, and thus, new strategic choices are required. The collaborative division of labor effect in the industry chain can improve profits and labor productivity, which is an important driving force for enterprise transformation and development. Therefore, a need arises to improve the profits of general contractors in the industrial chain system composed of prefabricated component suppliers, general contractors, and building development enterprises. Accordingly, this paper constructs a backward integration, forward integration, and bidirectional integration Stackelberg game model based on the proportion of resource investments, with general contractors as the main decision-making body. It then compares and analyzes the optimal decision-making values in different situations to study the optimal strategic decision-making problem of general contractors. Research results indicate the following. (1) All three integrated strategies can improve the profits of general contractors. When the proportion of resource investment meets certain conditions, the profits of general contractors under the bidirectional integration strategy are the highest, while the sustainable performance of the industrial chain and prefabricated buildings can be increased and the coordination of the industrial chain can be achieved. Thus, it is the best choice for a general contractor. (2) As a prefabricated component supplier needs to carry out continuous technological innovation activity to obtain a cumulative effect, the return on investment of forward integration is less than that of backward integration. (3) General contractors may consider choosing to carry out bidirectional integration strategies of forward integration followed by backward integration.

A multinational firm’s global manufacturing location and outsourcing strategies

Due to rising labor costs in China and trade friction, many multinational firms (MNFs) consider moving manufacturing outside China to Southeast Asian Countries. Based on observations in real world, we build a three-tier supply chain model consisting of one component supplier, two contract manufacturers (CMs), an MNF, and a local original equipment manufacturer (OEM). The MNF monopolizes the market in country 1 (e.g., U.S.), but competes in country 2 (e.g., China) with the local OEM. The component supplier and one CM are located in country 2, and the other CM is located in country 3 (e.g., a country in Southeast Asia). We investigate the MNF’s global manufacturing location and procurement outsourcing strategies with considerations of tariffs and market environments. Currently, the MNF outsources its manufacturing to the CM in country 2, and decides whether to continue the cooperation with the current CM or develop a new CM in country 3. The MNF also considers whether to outsource its component procurement to the corresponding CM. Our study reveals that the MNF’s optimal strategy depends on the relative market sizes, the fixed cost of developing a new CM, as well as the manufacturing cost and tariff disadvantages in country 2. Interestingly, we find that the tariff disadvantage in country 2 does not always motivate the MNF to cooperate with the CM in country 3. Instead, an appropriate tariff may be beneficial to the MNF that manufactures in country 2. In addition, the MNF’s preferred procurement strategy is related to its manufacturing location. When cooperating with the CM in country 2, the MNF would switch from direct procurement to outsourced procurement as the market size of country 1 increases.

Assessing Potential of Import Substitution in Industry Based on Multi-Criteria Rating of Alternatives by Integral Indicator of Efficiency

The article provides a mathematic model of assessing the potential of import substitution at big industrial enterprises and in branches of production. The practical use of the model is carried out in conditions of Russian highly technological enterprise passing-over to home material and technical base of components in order to ensure technological independence. Assessment of import substitution potential is based on building the optimum plan of settling the transport task and level of suppliers’ product deficit by goods nomenclature in the optimum plan of settling the open transport task of product completing. The task is studied in view of manufacturing traction electric motors used in producing military equipment as well as products of civil and dual purpose in cooperation with contracting parties (suppliers) of components. In this case concrete variants of completing electric motors can influence both quality and price of the final product. In the mathematic model all components are estimated by cost and rated by usefulness hierarchy. For electric motors the equal contribution of forces to component cost was found.

Regionalizing the supply chain in process life cycle inventory with multiregional input–output data: An implementation for ecoinvent with EXIOBASE

AbstractLife cycle inventory (LCI) databases, such as ecoinvent, are crucial for life cycle assessment (LCA), but lack country‐specific resolution in activity details and trade between regional activities in the supply chain. For example, ecoinvent only provides rest‐of‐world and European datasets for photovoltaic panel production, consuming the same global consumption mix of photovoltaic cells. Global or continental activities and trade limit the use of existing country activities, such as electricity production, and the accuracy and granularity of LCA results. We addressed this issue by disaggregating ecoinvent's global and continental unit processes to the country level and by regionalizing trade using country‐sector‐specific consumption mixes of product origins from the multiregional input–output table EXIOBASE. This produced a consistently regionalized ecoinvent at country level. Comparing the climate change impacts of 195,708 non‐market datasets in our regionalized ecoinvent with reference datasets in ecoinvent reveals manufacturing sectors as the most affected. The study of photovoltaic panel production shows that the differences in climate change impacts are mainly due to the different country‐specific suppliers of components and their electricity mixes, which are lost in the aggregated original data. The water consumption impacts of wheat production show the country differences only when regionalized CFs are applied, indicating that regionalized biosphere and technosphere flow amounts are needed for better results. The mapping quality between ecoinvent and EXIOBASE and inconsistent market definitions were discussed along with further limitations. Our study highlights the potential of incorporating better trade information and regional disaggregation in LCI databases to improve the LCA outcomes.

Innovation for environmental sustainability: business models for SMEs

PurposeAn effective business model (BM) is essential for the success of any company, with sustainable innovation being a critical component of this model. This entails finding creative ways to meet present needs without compromising future generations. In this regard, cooperation can be crucial in developing sustainable innovation. This paper investigates how different types of cooperation impact the development of small and medium-sized enterprises (SMEs) innovation for environmental sustainability. In this sense, it intends to compare the effects of cooperation acquired nationally or at a European level.Design/methodology/approachThe methods used are logistic regression for the sample of 87,374 observations from 14 countries of the Eurostat Community Innovation Survey (CIS) database.FindingsThe results confirm that cooperation with national or European agents significantly impacts the innovation for environmental sustainability of SMEs; however, not all cooperations have the same significance level. At a national level, cooperation with the suppliers of equipment, materials, components or software, clients or customers and universities or other higher education institutes impacts the innovations for environmental sustainability developed by SMEs. At a European level, cooperation established with other enterprises within your enterprise group, equipment, materials, components or software suppliers, clients or customers and government, public or private research institutes significantly impacts innovations for environmental sustainability.Originality/valueThis study also provides substantial theoretical contributions on the subject and more information about the importance of cooperation by SMEs in developing innovation for environmental sustainability.

Purchasing new for remanufacturing: Sourcing co-opetition, tax-planning and data validation

In practice, to guarantee remanufactured products to be “the same as new”, many remanufacturers purchase the core component and then assemble it with the remanufactured non-core components. Doing so enables the remanufacturer to keep the high product quality and achieve an overall cost saving, but the core component supplier like LG usually has the self-brand business that competes with the remanufacturer. We refer to their relationship as sourcing co-opetition in this study, under which the core component supplier determines its production location: overseas production for tax-planning benefit vs. domestic production for centralized supply efficiency. We reveal that the core component supplier's inclination towards overseas/domestic production is non-monotonic, depending on both the cost disadvantage and the corporate income tax disparity between the production and sales countries/regions. When the new product's cost disadvantage is not significant, overseas production is preferred under either limited or very large tax disparity. Interestingly, we find that overseas production can lead to a higher system profit and better environmental performance, indicating a win-win situation for the Pareto improvement of profitability and environmental sustainability.

Investigating a manufacturing ecosystem in transition toward electric vehicles – a business model perspective

PurposeBusiness Model Innovation is increasingly created by an ecosystem of related companies. This paper aims to investigate the transition of a manufacturing ecosystem toward electric vehicles from a business model perspective.Design/methodology/approachThe authors investigate an automotive manufacturing ecosystem that is in transition toward electric and electrified vehicles, conducting semi-structured interviews with 46 informants from 27 ecosystem members.FindingsThe results reveal that the actions of several ecosystem members are driven by regulations relating to emissions. Novel requirements regarding components and complementary offers necessitate the entry of actors from other industries and the formation of new ecosystem members. While the newly emerged ecosystem has roots in an established ecosystem, it relies on new value offers. Further, the findings highlight the importance of ecosystem governance, while the necessary degree of change in the members' business models depends on their roles and positions in the ecosystem. Therefore, upstream suppliers of components must perform business model adaptation, whereas downstream providers must perform more complex business model innovation.Originality/valueThe paper is among the first to investigate an entire manufacturing ecosystem and analyze its transition toward electric vehicles and the implications for business model innovation.

Summary Paper: An Initial Heliostat Supply Chain Analysis

This paper summarizes the prior analysis, key findings, and recommendations from the published report titled “Initial Heliostat Supply Chain Analysis” [1]. Globally, the growing demand for concentrating solar power (CSP) technologies, primarily for electricity generation plants has been met with supply chains primarily composed of plentiful commodity materials such as steel, aluminum, and glass. Often the commodity materials can be sourced in the domestic market where power plant will be constructed. Although specialty components are required for CSP solar fields —including mirror panels used for heliostat applications—these specialty components constitute about 30-50% of total system installed costs [2]. Only a few companies and countries, including the United States, have developed the capacity to supply such specialty components. The U.S. heliostat supply chain at present is comprised of few companies (e.g., CSP developers), component suppliers, and is its infancy.
 By 2035, with current and aggressive solar photovoltaic (PV) capacity expansions, there is the potential for 500,000–1,500,000 direct and indirect jobs in the areas of manufacturing, installation and development, and operations and maintenance (O&M) [3]. Utilizing the CSP capacity estimations the recent NREL report [4], the construction of 39 gigawatts (GW) of CSP (assuming mainly power tower) in the U.S. could lead to approximately 195,000 manufacturing, construction, and O&M jobs. This does not include the longer-term jobs and economic impact (e.g., taxes from plant operations staff) from operating the plants once constructed. It is recommended that further CSP component and system supply chain analysis and modelling be undertaken.

Investigating the impact of smart manufacturing on firms' operational and financial performance

PurposeSmart manufacturing (SM) lies at the core of Industry 4.0. Uniform adoption of SM across business partners is crucial to exploit its value creation potential. However, firms' willingness to invest in SM is limited by insufficient or inconclusive evidence on its performance-related benefits. To close this gap, this paper develops and tests a model linking SM adoption to firms' financial performance. Improvements along the four dimensions of operational performance (i.e. cost quality, delivery and flexibility) mediate this relation.Design/methodology/approachThis study follows an empirical research approach. In particular, survey data from 234 automotive component suppliers are analyzed via covariance-based structural equation modeling to explore the link between SM adoption and operational performance. Survey data are then matched with secondary data from balance sheets of 81 firms to investigate the impact of SM on financial performance via partial least square structural equation modeling.FindingsFindings highlight that adoption of SM results in improvements in cost, quality, delivery performance, thus suggesting that SM is a mean to overcome performance trade-offs. Improvements in operational performance enabled by SM do not give rise to superior financial performance, thus implying that SM might support firms in maintaining the competitive position in the market, but could be insufficient to generate higher margin.Originality/valueResults have implications for SM research and for manufacturing executives engaged in the adoption of SM, as they provide a detailed analysis of the impact of SM on operational performance and clarify the effect that SM adoption has on financial performance.

Assessment of the organizational and economic sustainability of the functioning of integrated technological structures

The paper substantiates the possibility of creating organizational and technological systems in innovative production based on integration into the relevant organizational and production structures, which in the end allows to increase the mobility of the transfer of high technologies in wartime, to reduce the time and complexity of the development and production of the latest products. A methodology for assessing the organizational and economic stability and controllability of the functioning of organizational and production structures in the process of their integration is proposed. This approach makes it possible to assess the integration process as being aimed at a specific result, at compliance with the strategy chosen by the industrial enterprise, and to initiate the necessary organizational and management measures. Also, its use in already created integration organizational and production structures will allow to increase their organizational and economic stability and manageability by ten percent, and the risk of the integration process by five percent; the degree of management by the integrated structure of the work of suppliers with an increase in the level of synergy is considered. The problems of creating integrated structures in the defense-industrial complex are summarized. An assessment of synergistic efficiency in relation to suppliers of materials and components for the production structure was carried out. A new perspective on the interpretation of entropy for evaluating the degree of integration of high-tech systems is provided. Of particular relevance and practical importance today is the development of new methods, concepts and theoretical foundations of strategic management of organizational and economic stability of both an innovative and active enterprise or an organizational and technological system, as well as the integration of industrial enterprises structures. In order to achieve a light level, the enterprise must rely not only on the organizational and technological system of the current level, but also on developing in line with the advances in light technologies and on internal arrangements. the functioning of our minds. The strategic structure will be strengthened rather than lacking the resources and strategic skills necessary to achieve competitiveness in the light market. There is a need for scientifically-based integration of neighboring enterprises in order to improve the efficiency of their functions.

INTERFIRM PARTNERSHIPS AND ORGANIZATIONAL INNOVATION FOR INDONESIAN AUTOMOTIVE COMPONENT MANUFACTURERS FACING THE TRANSITION TO BATTERY ELECTRIC VEHICLES

Background: Indonesia’s Automotive Industry has gradually shifted from manufacturing Internal Combustion Engines (ICE) to Battery Electric Vehicles (BEV) in recent years. This transition of Battery Electric Vehicles (BEVs) is disrupting conventional automobile manufacturers, creating an urgent need for traditional automakers and component suppliers to innovate and revamp of the current automotive manufacturing capabilities. However, The pursuit of Interfirm partnerships between OEMs and suppliers is believed to enhance resiliency and innovative process within the automotive organization. The main objective of this study is to identify the impact of several factors interfirm partnerships affecting the implementation of organizational innovation activities. Methods: A quantitative cross-sectional design was adopted for this study. The data collection consisted of 30 respondents from 1st tier of Indonesian Automotive Component Manufacturers through site visits, interview and online questionnaires. Data processing and analysis were carried out using descriptive statistics, factor analysis and multiple linear regression. Results: The result indicate that interfirm partnerships factors associated with organizational innovation activities. Among four key aspects of interfirm partnerships such as Efficiency, Innovation and Learning, Market opportunities, and Technology and Competition, only the motives aligned with the latter were found to exert a statistically significant and positive impact on organizational innovation. Conclusion: The study reveals that technology and competition in the context of interfirm partnerships formation shows positive and significant relationships with organizational innovation. Implications of research: The research helps the Indonesia Automotive Industry to improve manufacturing capabilities and competitiveness in electric vehicles sector and also expands the literature on Battery Electric Vehicles research for academics. Originality and value: The study performs the assesment of relationship between interfirm partnership and automotive component organizations in Indonesia. By addressing practitioners’ viewpoints, this research utilizes quantitative measurement to drive automative innovation and enhance manufacturing capabilities with the presence of Battery Electric Vehicles.