Domestic Supplier Integration in the Chinese Automotive Industry: The Buyer's Perspective

This paper presents the results of an empirical analysis of the current practices of, and key challenges to, domestic supplier integration in the Chinese automotive industry from the buyer's perspective. The results are based on case interviews with thirty automotive firms from various countries of origin with manufacturing operations in China. The research findings indicate that domestic supplier integration in terms of joint product development and advanced production planning activities between buyers and suppliers currently takes place to a relatively low extent. The study results also reveal that a lack of critical supplier capabilities as well as buyer-side constraints act as inhibiting factors.