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The Partnership Network Structure of Automakers under Radical Technological Change

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  • Isada Fumihiko

    (The Faculty of Informatics - Kansai University, Japan)

Abstract

Background: Traditionally, dense network structures have dominated partnerships in the automotive industry. On the other hand, previous research in other industries has shown that network structures suitable for radical innovation include weak ties, structural holes and betweenness centrality. Objective: The purpose of this research is to empirically analyse the effect of the ongoing and radical change in the business environment within the automotive industry, referred to as CASE (connected, autonomous/automated, shared, and electric), on the network structure of the partnerships of automobile manufacturers. Methods/Approach: The methodology of this study is based on the use of real data on partnerships of car manufacturers around the world, analysed using social network analysis methods. Results/Findings: The analysis confirms that there is a significant correlation between the degree of the CASE approach, the number of weak ties and the size of structural holes. In addition, several cases showed significant differences in the network structure between new technology ventures and existing legacy technology firms. The findings highlight the insight that the network structure of the automotive industry is likely to change significantly in the future due to technological innovation.

Suggested Citation

  • Isada Fumihiko, 2021. "The Partnership Network Structure of Automakers under Radical Technological Change," Business Systems Research, Sciendo, vol. 12(2), pages 95-113, December.
    • Handle: RePEc:bit:bsrysr:v:12:y:2021:i:2:p:95-113:n:10
    DOI: 10.2478/bsrj-2021-0021
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    References listed on IDEAS

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    More about this item

    Keywords

    Partnership network; Social network analysis; technology change; automobile industry;
    All these keywords.

    JEL classification:

    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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