Supply Chain Efficiency Measurement to Maintain Sustainable Performance in the Automobile Industry

Illi Kim and Changhee Kim
Additional contact information
Illi Kim: College of Business Administration, Seoul National University, Seoul 08826, Korea
Changhee Kim: College of Business Administration, Incheon National University, Incheon 22012, Korea

Sustainability, 2018, vol. 10, issue 8, 1-16

Abstract: The automobile industry is set to undergo a structural transformation in the progress toward next-generation industries that involve autonomous vehicles and connected cars. Thus, supply chain management has become increasingly important for corporate competitiveness. This study aims to identify opportunities for improving supply chain performance by quantifying the impact of suppliers on the supply chain. An analysis was conducted in two phases. First, the efficiency of 139 partners that supply automobile components to the Hyundai Motor Company was measured using the Charnes–Cooper–Rhodes model, while the efficiency of Hyundai Motor Company’s 540 supply chains comprising partners, subsidiaries, and parent companies was measured using the network epsilon-based measure model. Second, the relationship between the partner efficiency and the supply chain efficiency was analyzed using the Mann–Whitney U test and the Tobit regression model. The results showed that efficient operation of partners hampers the efficiency of the total supply chain. Thus, there may be several partners that are not committed to quality improvement, while the Hyundai Motor Company seeks to promote quality management through win–win cooperation with partners. Consequently, automakers must review their partner management system, including their performance measurement and incentive systems.

Keywords: automobile industry; efficiency analysis; supply chain management; supplier selection; network DEA; epsilon-based measure (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.mdpi.com/2071-1050/10/8/2852/pdf (application/pdf)
https://www.mdpi.com/2071-1050/10/8/2852/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:10:y:2018:i:8:p:2852-:d:163186

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().