Exploring the Upgrading of Chinese Automotive Manufacturing Industry in the Global Value Chain: An Empirical Study Based on Panel Data

Abstract

Abstract:In the age of globalization, the upgrading of China's manufacturing industries has attracted great attention from both academicians and practitioners, as it certainly has great implications for the development of China and, even further, for the development of the whole world. To address this issue, the study clarifies the effects of the internal technological innovation capability (ITIC) and external linkages (ELs) on upgrading the Chinese automotive manufacturing industry (CAMI) in the global value chain, in order to indicate the appropriate way for the CAMI to be further upgraded and provide references for the formulation of regional automotive industrial policies. Based on Chinese panel data, the results confirm that both ITIC and EL are important for the upgrading of the CAMI, with ITIC being the more important. Improvement of ITIC facilitates the industry's cooperation with the EL, resulting in better knowledge access. Furthermore, the results of cluster analysis reveal that regions with relatively developed automotive industries place emphasis on both the ITIC and EL. However, in some regions (e.g., Shanghai and Chongqing), the utility of EL seems insufficient. Therefore, the results of this paper, on the OPEN ACCESS Sustainability 2015, 7 6190 one hand, suggest policies should be directed towards increasing the ITIC of CAMI. On the other hand, in some regions, managers and policymakers need to explore further the advantage of clustering.

Impact of Embedded Global Value Chain on Technical Complexity of Industry Export—An Empirical Study Based on China’s Equipment Manufacturing Industry Panel

“…On the contrary, when industry development is focused on functional upgrades and chain upgrades, embedding the GVC will inhibit the increase in industry export technology complexity [18]. Irrespective of which stage the industry is in, the industry's own domestic financial constraints, the ability to absorb imported technologies, and the domestic environment will all impact the effects of embedding in GVC [19][20][21]. In addition, improving the production process and organizational management mode will also promote the increase of the export technical content of the industry [22,23].…”

Competitive and Sustainable Manufacturing in the Age of Globalization

“…Lu et al [35] investigated the effects of the internal technological innovation capability (ITIC) and external linkages (ELs) on the upgrading of the Chinese automotive manufacturing industry (CAMI) in the global value chain. The results showed that compared to ELs, ITIC was more critical to the upgrading of CAMI.…”

Relationship of External Knowledge Management and Performance of Chinese Manufacturing Firms: The Mediating Role of Talent Management

“…In the whole scenario, manufacturing industry (hereafter 'MI') attained rapid growth in Asia pacific countries due to (FDI) and has contributed 32.6 percent of the world manufacturing value. In that case, particularly China is so for running ahead, accounting $ 2.05 trillion manufacturing output even higher than developed countries like USA (Lu et al, 2015). It has achieved milestones in 'MI' and become a leading manufacturing nation in the world with title engine of growth in Asian as well as global economy.…”

“…Close scrutiny is required by practitioners and researchers to address these issues in order to provide a strategic weapon for long-term survival and development, nevertheless, not only for China but even for the development of the world (Lu et al, 2015). Moreover, the previous study revealed talent management (hereafter 'TM') and knowledge management (hereafter 'KM') in US base multinationals and privately-owned enterprises (Collings, Scullion, and Vaiman, 2011).…”