Achieving global supply‐chain competitiveness: Evidence from the Chinese auto component sectors

The purpose of this paper is to explore the role of learning, trust, and innovation in the auto‐component industry in China. The paper traces the shifting parameters of achieving global competitiveness.

Research was conducted with 82 auto‐component manufacturing companies from the Yangtze River Delta region of China. Empirical studies relating to the level of trust in supply and level of learning orientation were conducted based on a conceptual model and a four‐part hypothesis.

The key findings of the research strengthens the argument that the auto‐component manufacturing sector has been noticeably moving away from the old “contract” and “catalogue” mindset to a mindset of “collaborative innovation.”

The paper has a significant practical implication not only for the auto‐component sector, but also for other industries where collaboration and trust are critical.

The authors have developed a number of implications from the findings of this research. It is becoming increasingly important to build a trusting network with designers and manufacturers in order to add value to dramatically shifting industry features.