Impact of supply chain on the competitiveness of the automotive industry

Abstract Purpose There is a great reliance on fiscal incentives to sustain the automotive industry competitiveness due to several structural problems, among them the inefficiency of the supply chain. This paper aims to compare the supply chain structure of traditional automotive industry with the supply chains from South Korea and China. Based on strategic decision and transaction cost theory, this comparison seeks to exploit the factors that led to the inefficiency of automotive supply chains. Design/methodology/approach The authors used a qualitative approach and applied a multi-method res...