Complexity explosion and capability building in the world auto industry: an application of design-based comparative advantage
AbstractBased on the framework of design-based comparative advantage, in which the dynamic fit between the organizational capabilities of manufacturing sites and the architectures of products and processes affects the competitiveness of the sites and industries, the paper describes and analyzes various issues in the world automobile industry. The current U.S. auto crisis is seen as a long-term consequence of the gap between the division-of-labor type capability and the integral-type architecture of small cars. The competitiveness of the Japanese in the small car market of the late 20th century is illustrated as the fit between the path-dependent accumulation of coordination-type organizational capability and the stricter safety-energy-environmental constraints imposed upon automobiles by the advanced nations. The possibility of commoditizing the automobiles is discussed from the modularization viewpoint, indicating the modular nature of the locally-designed Chinese vehicles and the integral nature of an Indian low-cost vehicle. The architectural differences between pure electric vehicles and hybrid vehicles are emphasized as the paper discusses the potential and the limitations of the former. Toyota’s recent recall problem is seen as the problem of product complexity overwhelming the company’s organizational capability in design.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by FrancoAngeli Editore in its journal ECONOMIA E POLITICA INDUSTRIALE.
Volume (Year): 2011/2 (2011)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.francoangeli.it/riviste/sommario.asp?IDRivista=13
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- M11 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Production Management
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Angelo Ventriglia).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.