Refine
Has Fulltext
- no (1)
Year of publication
- 2019 (1)
Document Type
Language
- English (1)
Is part of the Bibliography
- yes (1)
Institute
Purpose of this paper:
Two major trends, electric mobility and digitalization, are going to transform the automotive industry. Car manufacturers and suppliers alike are under increasing pressure to adapt to these trends. This paper shows how German car manufacturers and their suppliers assess electric mobility and digitalization in terms of supply network adaptability. It is discussed if these trends follow evolutionary or revolutionary patterns.
Design/methodology/approach:
Adaptation can be seen as a process of evolution – in natural ecosystems as well as in supply networks. Evolutionary Economics and Punctuated Equilibrium are combined into a theory framework to analyze the adaptation processes of German automotive supply networks. Data has been collected in four in-depth interviews with managers of German car manufacturers and tier-1 automotive suppliers, respectively.
Findings:
Both car manufacturers and automotive suppliers see electric mobility as a trend that is still in an equilibrium and can be dealt with slower, gradual modes of adaptation. However, some experts have the opinion that this will only work until a tipping point is reached. In contrast, the impact of digitalization on automotive supply networks is much less clear. While some experts see a distinct revolutionary impact on the supply networks which requires an abrupt adaptation to new scenarios, others follow a more conservative view assuming a longer time allowance for supply networks to adapt gradually. The data suggests that the former have a focus on the connected car/autonomous driving, while the latter are following a more general approach that also includes “smartphone-on-wheels” concepts. Irrespective of the impact on a company’s products, digitalization changes the way a company works internally and collaborates with both its supply network and its customers. Both car manufacturers and tier‐1 suppliers agree that the supply networks enjoy long phases of relative stability. Trends requiring a rapid, fundamental adaptation are rare. This suggests that the theory framework that combines Punctuated Equilibrium and Evolutionary Economics is a promising toolset for analyzing the adaptation
of supply networks.
Value:
This paper presents empirical insight from the automotive industry on how car manufacturers and tier-1 suppliers prepare to cope with the trends of electric mobility and digitalization. To the best of our knowledge, this paper is the first attempt to combine Punctuated Equilibrium and Evolutionary Economics into a conceptual model for the adaptation of supply networks as a response to fundamental changes.