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Readiness for Supply Chain Collaboration and Supplier Integration—Findings from the Chinese Automotive Industry

2016 , Schadel, Joachim , Lockström, Martin , Moser, Roger , Harrison, Norma , Pawar, Kulwant S. , Rogers, Helen , Potter, Andrew , Naim, Mohamed

The efforts among automotive companies in China to find suitable domestic suppliers have to be seen as a response to local content requirements promulgated by the Chinese central government but also as part of the global sourcing strategy among the producers. Therefore, automotive companies, both original equipment manufacturers (OEMs) and their Western suppliers, are currently trying to integrate more domestic suppliers in their supply chains in China (Holweg et al., 2005). The automotive industry is suitable for further research of complex buyer-supplier interactions because it can also be considered a networked industry implying that it is virtually impossible for any firm alone to possess all the technical expertise and capabilities needed to develop and produce a complex product (Binder et al., 2007; Holweg and Pil, 2007).

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Publication

Supplier Intergration in the Chinese Automotive Industry

2011 , Lockstroem, Martin , Harrison, Norma , Moser, Roger , Malhotra, Manoj , Schadel, Joachim , Flynn, Barbara , Morita, Michiya , Machuca, Jose

Grounded theory is used to develop a list of factors that facilitate and inhibit supplier relationships in China, in "Supplier Integration in the Chinese Automotive Industry." Although this is an industry which has been characterized by its rapid growth and many success stories, it is also known for its limited collaborative and process management capabilities. In fact, key automotive components are still primarily designed outside of China. Interviews were conducted with 30 managers in the Chinese automotive industry and transcribed into 650 pages of textual material. Key themes were developed using qualitative data analysis tools, including within-case analysis, hierarchical axial coding and line-by-line analysis of the transcripts. This resulted in seven analytical categories and six causal relationships. Proposals were developed related to collaborative supplier capabilities, supplier collaboration readiness, buyer leadership, continuous supplier development, leadership inhibitors and cultural distance. The authors suggested development of an organizational interface with the Chinese supplier market, to help address the tradeoff between local adaptation and global integration of sourcing processes.