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China and the Reshaping of the Auto Industry: A Dynamic Capabilities Perspective

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  • Teece, David J.

Abstract

Chinese firms are grappling with the four paradigm shifts around electric, connected, shared, and autonomous vehicles that are roiling the rest of the global auto industry. This article, which follows my earlier MOR article about the auto industry (Teece, 2018a), looks briefly at the development of capabilities in these fields by Chinese firms. It then analyzes the prospects for Chinese firms to use them to gain a stronger foothold in the global market, and for multinationals to continue to prosper in China. The paradigm shifts are creating new entry points for Chinese firms to capture value in the industry, and some potential global contenders have demonstrated solid dynamic capabilities in electric vehicles (Geely), shared vehicles (Didi Chuxing), and autonomous vehicles (Baidu). However, multinationals are also moving forward in the same fields and have strong complementary assets such as respected brands and well-honed dynamic capabilities.

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  • Teece, David J., 2019. "China and the Reshaping of the Auto Industry: A Dynamic Capabilities Perspective," Management and Organization Review, Cambridge University Press, vol. 15(1), pages 177-199, March.
    • Handle: RePEc:cup:maorev:v:15:y:2019:i:1:p:177-199_9
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    Cited by:

    1. Hutton, Steven & Demir, Robert & Eldridge, Stephen, 2021. "How does open innovation contribute to the firm's dynamic capabilities?," Technovation, Elsevier, vol. 106(C).
    2. Vera Ndrecaj & Mohamed Ashmel Mohamed Hashim & Rachel Mason-Jones & Valentina Ndou & Issam Tlemsani, 2023. "Exploring Lean Six Sigma as Dynamic Capability to Enable Sustainable Performance Optimisation in Times of Uncertainty," Sustainability, MDPI, vol. 15(23), pages 1-23, December.
    3. Maryam Zehtabchi, 2019. "Measuring Innovation in the Autonomous Vehicle Technology," WIPO Economic Research Working Papers 60, World Intellectual Property Organization - Economics and Statistics Division.
    4. Dario Guarascio & Jelena Reljic & Giacomo Cucignatto & Giuseppe Celi & Annamaria Simonazzi, 2023. "Between a rock and a hard place. Long-term drivers of EU structural vulnerability," Working Papers in Public Economics 237, Department of Economics and Law, Sapienza University of Roma.
    5. Jonathan Doh & Pawan Budhwar & Geoffrey Wood, 2021. "Long-term energy transitions and international business: Concepts, theory, methods, and a research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(5), pages 951-970, July.
    6. Mohamed Shawesh & Kolawole Iyiola & Ahmad Alzubi, 2024. "Innovation Eco-Embeddedness, Breakthrough Innovation, and Performance of Non-Core Firms: A Mediation Moderation Study," Sustainability, MDPI, vol. 16(20), pages 1-24, October.
    7. Prud'homme, Dan & von Zedtwitz, Max, 2019. "Managing “forced” technology transfer in emerging markets: The case of China," Journal of International Management, Elsevier, vol. 25(3), pages 1-1.
    8. Yipeng Liu, 2024. "Reviving the aspiration, fostering impactful research, and contributing to the sustainable development and societal impact at Asian Business and Management," Asian Business & Management, Palgrave Macmillan, vol. 23(1), pages 1-8, February.
    9. Julian Schwabe, 2020. "From “obligated embeddedness” to “obligated Chineseness”? Bargaining processes and evolution of international automotive firms in China's New Energy Vehicle sector," Growth and Change, Wiley Blackwell, vol. 51(3), pages 1102-1123, September.

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