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Technological Development in the Automotive Industry and Transformation in the Corporate Governance System

In: ESG Investment, German Industrie 4.0, and Blockchain

Author

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  • Kazuyuki Shimizu

    (Meiji University, School of Business Administration)

Abstract

This chapter examines how the development of a ubiquitous society—where everything is connected to Internet—and the spread of IoT are transforming industrial structures, governance systems, and value creation. Focusing on the automotive industries of Germany, Japan, and the United States, it analyzes how advancements in Industrie 4.0, IoT, embedded production technologies, and AI are restructuring corporate governance and accelerating cross-industry integration. The analysis is based on six perspectives presented in the chapter: 1. GDP Trends for Manufacturing Industries, 2. Industrie 4.0 & Governance Structure, 3. Viewpoint Relating to IoT Usability, 4. Smiling Curve & Value Chain Network, 5. Production System & Embedded System, 6. Cyber-Physical System & ICT-Related Development. These perspectives include: (1) changes in manufacturing’s share of GDP, (2) governance structures shaped by Industrie 4.0, (3) IoT usability, (4) value allocation illustrated by the smiling curve, (5) production systems and embedded technologies, and (6) the development of CPS—bridging virtual and physical domains—and ICT. While manufacturing has declined in the United States, Japan and Germany have maintained stability through policy measures. The smiling curve serves as a framework for explaining differences in value distribution across virtual and real spaces. From an institutional viewpoint, the chapter compares how Japan’s Keiretsu, Germany’s Konzern, and the Anglo-American capital-efficiency-oriented model have shaped supply chain management. It further argues that the networking of IoT technologies and embedded systems lies at the center of industrial transformation. Car navigation systems function as exemplary CPS, supporting autonomous driving technologies and serving as intelligent nodes in connected mobility networks. These structural changes necessitate new governance frameworks. Drawing on Norbert Wiener’s cybernetics, the chapter concludes that designing a “cybernetic map” is essential for navigating rising complexity. Ultimately, institutional safeguards that support diversity, innovation, and fair competition—and that protect “freedom of design”—are indispensable for building adaptive and resilient industrial ecosystems.

Suggested Citation

  • Kazuyuki Shimizu, 2026. "Technological Development in the Automotive Industry and Transformation in the Corporate Governance System," Springer Books, in: ESG Investment, German Industrie 4.0, and Blockchain, chapter 0, pages 109-137, Springer.
    • Handle: RePEc:spr:sprchp:978-981-95-6927-4_6
    DOI: 10.1007/978-981-95-6927-4_6
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