Supplier Integration in the Chinese Automotive Industry

Supply chain integration capabilities, green design strategy and performance: a comparative study in the auto industry

“…Coinciding with previous studies, this finding may be explained by the notion that Chinese firms are more in favor of a collective work ethic, and they perform best when part of in-groups rather than alone or in an out-group (Earley, 1993;Sivakumar and Nakata, 2003). In addition, as another study shows, Chinese automakers lack their own product development and R&D capabilities compared to the Western counterparts (Lockström et al, 2010). Therefore, when they adopt green design initiatives, these Chinese auto firms may be more reliant on collaborative efforts and joint-problem solving, thus revealing a stronger integration to green design linkage.…”

“…Therefore, when they adopt green design initiatives, these Chinese auto firms may be more reliant on collaborative efforts and joint-problem solving, thus revealing a stronger integration to green design linkage. Lockström et al (2010) also noted that the business relationships in China are very different from the way they are built in the West, as indicated by the different negotiating style and value of contacts, and a more personalized approach. Guanxi, which is an important cultural and social element in China, is an intrinsic part of Chinese business (Park and Luo, 2001).…”

“…This finding might be explained by the possibility that Western firms have relatively stronger product development capabilities and their product innovation lies more typically in the hands of dedicated specialist R&D teams. Western auto firms often invest significantly in their R&D capacity and thus possess an adequate level of knowledge, skills, and capabilities to come up with new technologies on their own (Lockström et al, 2010). Therefore, they may not rely too much on internal and external collaboration when pursuing their green design strategies.…”