IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/51342.html
   My bibliography  Save this paper

Automotive Industry Response to its Global QMS Standard ISO/TS-16949

Author

Listed:
  • Singh, Neelam

Abstract

With increasing globalization, the intense competition and customer-pressure have spurred many producers from developing/ emerging countries to adopt the best management and organizational practices. The quality issues are paramount for automotive manufacturing. The multiplicity of Quality Management System (QMS) Standards prevalent till the 1990s finally gave way to development of a harmonized automotive industry-specific QMS, namely ISO/TS-16949. This paper analyzes the major factors motivating firms to adopt this Standard: its quality signaling function, especially in international business, and facilitative role in moving up the supply chain. We investigate the inter-national and inter-regional concentration of ISO/TS-16949 certificates and relate those changes to the automotive industry dynamics. Among the top certifying nations - China, India and Brazil included - these certificates and ‘cars and commercial vehicles’ produced are highly correlated. A moderate-to-high worldwide growth of this certification is probable in near future with its gaining popularity among Tier-2 suppliers and for two/ three-wheeler automotive production. The Indian evidence indicates a sizeable proportion of car and commercial vehicle plants being ISO/TS-16949 certified and a high certification incidence among large and medium-large auto component firms. We suggest the creation of a Centre to encourage and prepare SMEs and provide financial assistance for ISO/TS-16949 certification.

Suggested Citation

  • Singh, Neelam, 2013. "Automotive Industry Response to its Global QMS Standard ISO/TS-16949," MPRA Paper 51342, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:51342
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/51342/1/MPRA_paper_51342.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David Bailey & Alex de Ruyter & Jonathan Michie & Peter Tyler, 2010. "Global restructuring and the auto industry," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 3(3), pages 311-318.
    2. Jaya Prakash Pradhan & Neelam Singh, 2009. "Outward FDI and Knowledge Flows: A Study of the Indian Automotive Sector," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 1(1), pages 156-187, June.
    3. Terlaak, Ann & King, Andrew A., 2006. "The effect of certification with the ISO 9000 Quality Management Standard: A signaling approach," Journal of Economic Behavior & Organization, Elsevier, vol. 60(4), pages 579-602, August.
    4. S.A. Oke & O.E. Charles-Owaba, 2007. "Implementation of ISO-based quality management systems: a review of the literature," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 2(1), pages 81-111.
    5. Jim Stanford, 2010. "The geography of auto globalization and the politics of auto bailouts," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 3(3), pages 383-405.
    6. John Sutton, 2007. "Quality, Trade and the Moving Window: The Globalisation Process," Economic Journal, Royal Economic Society, vol. 117(524), pages 469-498, November.
    7. Karthik Balakrishnan & Sridhar Seshadri & Anshul Sheopuri & Ananth Iyer, 2007. "Indian Auto-Component Supply Chain at the Crossroads," Interfaces, INFORMS, vol. 37(4), pages 310-323, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Juan Carlos Hallak & Jagadeesh Sivadasan, 2009. "Firms' Exporting Behavior under Quality Constraints," Working Papers 09-13, Center for Economic Studies, U.S. Census Bureau.
    2. Hallak, Juan Carlos & Sivadasan, Jagadeesh, 2008. "Productivity, quality and exporting behavior under minimum quality constraints," MPRA Paper 24146, University Library of Munich, Germany.
    3. Prema-chandra Athukorala & C. Veeramani, 2019. "From Import Substitution to Integration into Global Production Networks: The Case of the Indian Automobile Industry," Asian Development Review, MIT Press, vol. 36(2), pages 72-99, September.
    4. Gill Bentley & David Bailey & Stewart MacNeill, 2013. "The changing geography of the European auto industry," Chapters, in: Frank Giarratani & Geoffrey J.D. Hewings & Philip McCann (ed.), Handbook of Industry Studies and Economic Geography, chapter 3, pages 67-96, Edward Elgar Publishing.
    5. Li, Linjie & Liu, Xiaming & Yuan, Dong & Yu, Miaojie, 2017. "Does outward FDI generate higher productivity for emerging economy MNEs? – Micro-level evidence from Chinese manufacturing firms," International Business Review, Elsevier, vol. 26(5), pages 839-854.
    6. Belen Lopez & Alfonso Torres & Alberto Ruozzi & Jose Antonio Vicente, 2020. "Main Factors for Understanding High Impacts on CSR Dimensions in the Finance Industry," Sustainability, MDPI, vol. 12(6), pages 1-17, March.
    7. Carsten Eckel & Florian Unger, 2023. "Credit Constraints, Endogenous Innovations, And Price Setting In International Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(4), pages 1715-1747, November.
    8. Magali Delmas & Ivan Montiel, 2009. "Greening the Supply Chain: When Is Customer Pressure Effective?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(1), pages 171-201, March.
    9. Agbekponou, Kossi-Messanh & Cheptea, Angela & Latouche, Karine, 2022. "Quality upgrading and position in global value chains," 2022: Transforming Global Value Chains, December 11-13, Clearwater Beach, FL 339411, International Agricultural Trade Research Consortium.
    10. Bloom, Nick & Manova, Kalina & Teng Sun, Stephen & Van Reenen, John & Yu, Zhihong, 2018. "Managing trade: evidence from China and the US," LSE Research Online Documents on Economics 88703, London School of Economics and Political Science, LSE Library.
    11. Giordano, Claire & Lopez-Garcia, Paloma, 2019. "Firm heterogeneity and trade in EU countries: a cross-country analysis," Occasional Paper Series 225, European Central Bank.
    12. Blind, Knut & Mangelsdorf, Axel & Pohlisch, Jakob, 2018. "The effects of cooperation in accreditation on international trade: Empirical evidence on ISO 9000 certifications," International Journal of Production Economics, Elsevier, vol. 198(C), pages 50-59.
    13. Clougherty, Joseph A. & Grajek, Michał, 2014. "International standards and international trade: Empirical evidence from ISO 9000 diffusion," International Journal of Industrial Organization, Elsevier, vol. 36(C), pages 70-82.
    14. Elvin Afandi & Majid Kermani, 2014. "What determines firms’ innovation in Eastern Europe and Central Asia," Perspectives of Innovation in Economics and Business (PIEB), Prague Development Center, vol. 14(1), pages 1-20, February.
    15. Susan A. Kayser & John W. Maxwell & Michael W. Toffel, 2014. "Supply chain screening without certification: The critical role of stakeholder pressure," Working Papers 2014-08, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    16. Tavana, Madjid & Izadikhah, Mohammad & Toloo, Mehdi & Roostaee, Razieh, 2021. "A new non-radial directional distance model for data envelopment analysis problems with negative and flexible measures," Omega, Elsevier, vol. 102(C).
    17. Ba Hoang Nguyen & Ho Hoang Gia Bao & Hoang Phong Le & Tram B.T. Tran & Thanh An Vu, 2023. "Globalization and innovation: Evidence from Vietnamese small and medium sized enterprises," Economic Analysis Letters, Anser Press, vol. 2(4), pages 19-27, July.
    18. Brambilla, Irene & Porto, Guido G., 2016. "High-income export destinations, quality and wages," Journal of International Economics, Elsevier, vol. 98(C), pages 21-35.
    19. José Antonio Rodríguez-López, 2011. "Prices and Exchange Rates: A Theory of Disconnect," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 78(3), pages 1135-1177.
    20. Annette Schminke & Johannes Van Biesebroeck, 2013. "Using export market performance to evaluate regional preferential policies in China," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(2), pages 343-367, June.

    More about this item

    Keywords

    Quality Management System; QMS; ISO/TS-16949 Standard; automotive industry; international QMS Standard; India;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:51342. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.