Joachim Schadel

Successful supplier integration in the Chinese automotive industry: A theoretical framework

This paper seeks to develop a supplier integration framework in a Chinese context based on existing theories and empirical insights from the Chinese automotive industry. The objective is to develop a framework and identify a number of factors that can potentially facilitate supplier integration and ultimately improve supply chain performance. The framework comprises a causal chain with four key constructs, starting with supply chain leadership as an antecedent to alliance readiness, which in turn is proposed to yield a higher degree of supplier integration. Eventually, a higher degree of supplier integration is proposed to positively influence supply chain performance. By building on prior research and 30 case studies, the framework provides a China-specific approach to supplier integration and offers insights into the current status in the Chinese automotive industry.

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

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).