This thesis seeks to contribute to the discussion on latecomer firms by gaining insights into the catch up processes of five automobile companies in the passenger car segment, namely BYD (PRC), Chery (PRC), Geely (PRC), Tata Motors (India) and Mahindra & Mahindra (India). Based on learning theories and the core processes of automobile manufacturers, the thesis develops a catch up framework to systematically compare automobile latecomers. Korean automobile manufacturer Hyundai serves as an example for successful catch up and provides a contextual framing for catch up processes in the automobile sector. An analysis of empirical data provides evidence for the evaluation of the catch up status of the five challenger firms. The author emphasizes the influence of institutional settings in China and India and the role of business groups which both can act as facilitators for the catch up process. Finally, the thesis clusters the catch up strategies of the five observed companies in order to compare their approach. The results indicate that the observed automobile latecomers have not achieved a sophistication level comparable to incumbents in terms of capabilities. However, opportunities to accelerate the capability building process exist. Latecomers can leapfrog through partnering, acquisitions or changing the rules of the game in the industry.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- The automobile sector
- History of a mature industry
- Value system and fundamental considerations
- Incumbents as the catch up benchmark
- Toyota Motor Corporation
- General Motors Company
- Volkswagen AG
- A conceptual framework of key catch up factors in the automobile industry
- Learning theories and their importance for catch up
- The concept of absorptive capacity
- The interaction between tacit and explicit knowledge
- Leapfrogging in the knowledge creation process
- Core resources and capabilities in the automobile sector
- Developing automobiles
- Managing the supply and production network
- Operating a dealership and service network
- Marketing and branding cars
- Catch up model for the automobile industry
- Hyundai: Insights from an early catch up case
- Initial institutional setting in Korea and its development
- The Hyundai Chaebol as a facilitator of catch up
- Hyundai's catch up path
- Producing with assistance
- Achieving fundamental design capabilities
- Licensing core technology for advanced products
- Developing distinct core technology knowledge
- Establishing a global production network
- Hyundai's strategic pattern of learning
- A longitudinal perspective on the selected automobile latecomers BYD, Chery, Geely, Tata Motors and Mahindra
- Institutional environment in China and India
- Pre-opening phases
- Post-opening phase in China
- Post-liberalization phase in India
- The influence of business groups
- Catch up path and current status of the five companies
- Capability area I: Developing automobiles
- Capability area II: Managing the supply and production network
- Capability area III: Operating a dealership and service network
- Capability area IV: Marketing and branding cars
- Strategic pathways for automobile latecomers
- Strategic group I: Follow the leaders
- Strategic group II: Incremental innovation and exhaustive absorption
- Strategic group III: Gambling on game changing developments
- Limitations, further research and concluding remarks
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis investigates the catch-up processes of five automobile companies (BYD, Chery, Geely, Tata Motors, Mahindra & Mahindra) from China and India, comparing them to Hyundai, a successful Korean automotive latecomer. The aim is to analyze the challenges these companies face in reaching a comparable level of sophistication to established incumbents in the industry. The study uses learning theories and core processes in the automobile sector to develop a framework for systematic comparison, emphasizing the impact of institutional settings and business groups on the catch-up process.- Catch-up processes of emerging automobile manufacturers
- Learning theories and their role in achieving industry sophistication
- Influence of institutional settings and business groups
- Comparative analysis of catch-up strategies
- Opportunities for latecomers to accelerate capability development
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter sets the stage for the thesis, highlighting the growing importance of latecomer firms in the global automobile industry and outlining the research objectives. It introduces the five selected companies from China and India, as well as Hyundai as a benchmark case.
- The automobile sector: This chapter provides an overview of the automobile industry, examining its history, value system, and key considerations for success. It also analyzes the catch-up processes of three leading incumbents - Toyota, General Motors, and Volkswagen - to establish a benchmark for comparison.
- A conceptual framework of key catch up factors in the automobile industry: This chapter develops a conceptual framework based on learning theories and core processes in the automobile sector to analyze the catch-up process. It examines the concept of absorptive capacity, the interplay between tacit and explicit knowledge, and the importance of leapfrogging in the knowledge creation process. The chapter also explores the key resource and capability areas within the automobile industry, including product development, supply chain management, dealership network, and marketing and branding.
- Hyundai: Insights from an early catch up case: This chapter examines Hyundai's catch-up journey, highlighting the role of the initial institutional setting in Korea, the influence of the Hyundai Chaebol, and the company's strategic pattern of learning. It provides insights into the specific strategies Hyundai employed to overcome challenges and establish a global presence.
- A longitudinal perspective on the selected automobile latecomers BYD, Chery, Geely, Tata Motors and Mahindra: This chapter analyzes the institutional environment in China and India, exploring pre-opening, post-opening, and post-liberalization phases. It investigates the influence of business groups on the catch-up processes of the five selected companies. The chapter then delves into the current status of these companies, examining their capabilities in each of the four core areas identified in the framework.
- Strategic pathways for automobile latecomers: This chapter explores different strategic pathways available to latecomers in the automobile industry. It classifies the companies into three strategic groups based on their approach: "Follow the leaders," "Incremental innovation and exhaustive absorption," and "Gambling on game changing developments." The chapter discusses the advantages and disadvantages of each strategy and its implications for successful catch-up.
Schlüsselwörter (Keywords)
This thesis focuses on catch-up processes in the global automobile industry, particularly the challenges faced by latecomer companies from China and India. The research emphasizes the impact of learning theories, institutional settings, business groups, and core industry capabilities on the success of these firms. Key themes include absorptive capacity, leapfrogging, core process areas like product development and supply chain management, and the strategic pathways chosen by latecomers.
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- Daniel Wäldchen (Author), 2012, Catch up processes in the global automobile industry, Munich, GRIN Verlag, https://www.grin.com/document/204741
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