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The new competitive advantage of automobile manufacturers

The new competitive advantage of automobile manufacturers Purpose – The literature identifies different sources of competitive advantages. The purpose of this paper is to suggest that an efficient articulation of a Voice behavioral model and an Exit behavioral model can result in a sustained competitive advantage for automobile manufacturers. Design/methodology/approach – The paper builds on the analytical framework of the global value chain literature to analyze how the combination of hierarchy, relational linkages and market linkages creates additional assets. The case of Volkswagen‐Skoda in the Czech Republic is used to illustrate the combination of Voice and Exit relationships. Findings – The paper suggests that the competitive advantage of automobile manufacturers crucially depends today on the combination, on the one hand, of the “relational rent” provided by the cooperation with global suppliers, and on the other hand, of the “switching rent” provided by the absence of implication in the relationship with lower‐tier suppliers. Originality/value – The paper represents an original research initiative that considers the combination of three types of linkages as the source of competitive advantage. The paper uses a case study to exemplify the declination and articulation of the three types of linkages. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Strategy and Management Emerald Publishing

The new competitive advantage of automobile manufacturers

Eric Rugraff
Journal of Strategy and Management , Volume 5 (4): 13 – Oct 26, 2012
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References (43)

Publisher
Emerald Publishing
Copyright
Copyright © 2012 Emerald Group Publishing Limited. All rights reserved.
ISSN
1755-425X
DOI
10.1108/17554251211276371
Publisher site
See Article on Publisher Site

Abstract

Purpose – The literature identifies different sources of competitive advantages. The purpose of this paper is to suggest that an efficient articulation of a Voice behavioral model and an Exit behavioral model can result in a sustained competitive advantage for automobile manufacturers. Design/methodology/approach – The paper builds on the analytical framework of the global value chain literature to analyze how the combination of hierarchy, relational linkages and market linkages creates additional assets. The case of Volkswagen‐Skoda in the Czech Republic is used to illustrate the combination of Voice and Exit relationships. Findings – The paper suggests that the competitive advantage of automobile manufacturers crucially depends today on the combination, on the one hand, of the “relational rent” provided by the cooperation with global suppliers, and on the other hand, of the “switching rent” provided by the absence of implication in the relationship with lower‐tier suppliers. Originality/value – The paper represents an original research initiative that considers the combination of three types of linkages as the source of competitive advantage. The paper uses a case study to exemplify the declination and articulation of the three types of linkages.

Journal

Journal of Strategy and Management – Emerald Publishing

Published: Oct 26, 2012

Keywords: Czech Republic; Automobile industry; Competitive advantage; Suppliers; Global value chain; Types of linkages

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