The Transfer Of Supply Chain Management Practice In Chinese Companies

Automotive firms are reaching a highly global dimension and are establishing international network of suppliers. In order to achieve higher efficiency level and increasing the quality of the final product, multinational enterprises (MNEs) have to devote resources with the aim to develop supply chains and upgrade supply management capabilities in operational units worldwide. Therefore, automotive MNEs are increasingly engaged in transferring their supply management practices (SMP) across countries within their global network of subsidiaries and operational units.The main goal of this research is to provide a theoretical and empirical contribution to the understanding of "international supply management practices transfer". By developing in-depth qualitative analysis on the SMP transfer outcomes and on the relevant factors shaping such process, this case study analyzed the transfer of SMPs from a major multinational automotive vehicle-maker, IVECO, to its subsidiary in the People’s Republic of China (PRC), NAVECO. According to the six organizational routines taken as evaluation standards, namely make or buy choice, supplier selection, dependence management, operational management, technological cooperation and multi-level approach, this analysis shows that the transfer process has not been implemented in all of the areas considered. Therefore, the complete transfer has taken place only in some specific areas where the degree of interdependence with suppliers is not strong. Both local institutional and economic factors and firm-level variables (e.g. organizational setting and knowledge management practices) seem to have influenced the transfer process. Nevertheless, the choice of a partial transfer has been supported not only by economic considerations, but also depends on peculiar features of Chinese economic environment such as Chinese business culture and values. Furthermore, another core variable in the transfer of SMPs is the role of expatriate managers:their importance, already highlighted by many academics, is among the main findings of this research.