auto industry

Can Telematics Technology Help Improve Driving Behavior?

Funded Research Proposal

Technological innovation is changing the landscape of many industries, and automotive telematics devices are perhaps the most disruptive technology for the auto insurance industry and most automotive manufacturers have plans to develop telematics. Moreover, a number of startup companies use telematics devices in various applications. …Read More

Plant Operations and Product Recalls in the Automotive Industry: An Empirical Investigation

Published Research

While there is overwhelming support for the negative consequences of product recalls, empirical evidence of operational drivers of recalls is almost nonexistent. In this study, we identify product variety, plant variety, and capacity utilization as drivers of subsequent manufacturing-related recalls.…Read More

Thriving Innovation Amidst Manufacturing Decline: The Detroit Auto Cluster and the Resilience of Local Knowledge Production

Analyzing the comprehensive 35-year patent data set associated with the Detroit auto cluster we confirm that innovation in clusters can increase in spite of a long-term decline in manufacturing activity. The “stickiness” of local knowledge is sustained by: (i) increasing technological specialization at the local level and (ii) growing connectedness to global centers of excellence.…Read More

Knowledge Generation and Innovation Diffusion in the Global Automotive Industry—Change and Stability During Turbulent Times

This introduction to the April 2015 Industrial and Corporate Change special section establishes the context within which automotive firms cope with turbulence caused by globalization, new governmental regulations, and advances in electronics, communication, and drive train technologies.…Read More

Is it a car or truck?: managerial beliefs, the choice of product architecture, and the emergence of the minivan market segment

New markets segments are a common setting for studies in technology strategy. These studies generally assume that new segments already exist, or have formed following the introduction of a product innovation by an entering firm. Thus, theory on the role of established firms in the emergence of new market segments is underdeveloped.…Read More

Do or die: Competitive effects and Red Queen dynamics in the product survival race

This study explores the reciprocal relationship between the nature and duration of competition, and innovation outcomes. We propose that the perpetually driven, reciprocal sequence of competitive action and reaction known as the “Red Queen” in evolutionary biology is a cardinal force behind the success of innovations.…Read More

Business model configurations and performance: A qualitative comparative analysis in Formula One racing, 2005-2013

We investigate the business model configurations associated with high and low firm performance by conducting a qualitative comparative analysis of firms competing in Formula One racing. We find that configurations of two business models — one focused on selling technology to competitors, the other one on developing and trading human resources with competitors — are associated with high performance.…Read More

Using an online community for vehicle design: project variety and motivations to participate

Firms increasingly seek to use online communities as sources of ideas, innovations, and designs. However, many such open innovation efforts lack sustained participation and ultimately fail. This research sought to understand motivations to participate in a firm-hosted design community and how the nature of the design task influences sustained participation.…Read More

Managing systemic and disruptive innovation: lessons from the Renault Zero Emission Initiative

Some innovations are challenging to deploy because they destabilize existing technologies and value chains (systemic) as well as traditional customer preferences (disruptive). The existing literature does not provide clear guidance as to effective management methods for systemic and disruptive innovations (SDIs).…Read More

J.D. Power III’s Impact on the Auto Industry

How J.D. Power III Transformed the Auto Industry Through the collection of consumer feedback on cars, J.D. “Dave” Power III revolutionized the automobile industry in 1968. In this Knowledge@Wharton interview conducted by PVMI director John Paul MacDuffie, Power discusses the founding and early years of his firm, J.D. Power and…Read More

Reflections on the 2013 PVMI Researchers Meeting and Fall Conference

In addition to hosting the 2013 Fall Conference with the Program on Vehicle and Mobility Innovation (PVMI), the Mack Institute also held a PVMI Researchers Meeting on November 21, 2013. Both events focused on the theme of disruptive technologies and value migration. In this guest blog post, PVMI veteran Dan Whitney of…Read More

A Glimpse into the Future through Integration and Innovation

The Mack Institute hosted its annual Fall Conference on November 22, 2013 with the Program on Vehicle and Mobility Innovation (PVMI) on the topic of “When Disruptive Technologies Meet Integrated Systems: Who Captures the Value?” This guest post by three PVMI researchers summarizes key takeaways from the conference, including the…Read More

When Disruptive Technologies Meet Integrated Systems

John Paul MacDuffie addresses Mack Institute Fall Conference attendees

Knowing when to hold and when to fold isn’t just for poker players. When applied to new technology, that insight into knowing when to embrace the next new thing and when to let it pass has been known to make or break careers and entire companies. Think Kodak, an iconic…Read More

The Impact of New Product Introduction on Plant Productivity in the North American Automotive Industry

Published Research

Product launch—an event when a new product debuts for production in a plant—is an important phase in product development. But launches disrupt manufacturing operations, resulting in productivity losses. Using data from North American automotive plants from years 1999–2007, we estimate that a product launch entails an average productivity loss of 12%–15% at the plant level.…Read More

John Paul MacDuffie on Hybrids and Electric Cars

Wharton Mack Center core team member John Paul MacDuffie sees tomorrow’s roadways replete with hybrid and electric options, autonomous vehicles and more. MacDuffie, who is co-director of the International Motor Vehicle Program (IMVP), calls electric vehicles “part of our automotive future.” A recent Knowledge@Wharton article observes that such a development…Read More