Int. J Sup. Chain. Mgt Vol. 9, No. 3, June 2020
115
Measuring the Nature of East Asia’s
Automobile Production Networks
Shahrun Nizam Abdul-Aziz
#1
, Normala Zulkifli
#2
, Zainizam Zakariya
#3
, Ramlee Ismail
#4
, Mohd Yahya
Mohd Hussin
#5
, Fatimah Salwa Abdul Hadi
#6
, Azham Hussain
*7
#
Universiti Pendidikan Sultan Idris, 35900 Tanjong Malim, Perak, Malaysia
*
School of Computing, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia
1
shahrun@fpe.upsi.edu.my
2
normala@fpe.upsi.edu.my
3
zainizam@fpe.upsi.edu.my
4
ramlee@fpe.upsi.edu.my
5
yahya@fpe.upsi.edu.my
6
fatimahsalwa@fpe.upsi.edu.my
7
azham.h@uum.edu.my
Abstract—The aim of this study is to explore the nature
of East Asia’s automobile production networks by
means of social-network methods. In this paper, we
have also developed a domination degree index (DDI)
and domination intensity index (DII) to measure the
dominating power of each East Asian country in the
automobile networks. The results suggested that the
networks of East Asia’s automobile industry are
expanding over time both in terms of the number of
links in the network as well as the strength of those
links. This result indicates that both export and import
of automobile products in this region increase
significantly over time. In addition, Japan has emerged
as the main player, both in the case of auto parts and
components (P&C) and final automobiles. The
Republic of Korea has also emerged as the second most
important player in East Asia’s final automobile
networks, while China has become the second most
important player in East Asia’s auto P&C networks.
Even though Thailand is the third most important
player in East Asia’s automobile networks in both auto
P&C and final automobiles, the analysis of this paper
has suggested that there is a possibility for this country
to overtake China and the Republic of Korea to
become the second most important player in terms of
both auto P&C and final automobiles. The dramatic
changes in the development of Thailand’s automobile
industry as well as significant development in China’s
auto P&C have been made possible by the pivotal role
played by Japan (on Thailand) and the Republic of
Korea (on China) – all of which have stimulated the
development of their subordinates’ auto industry in a
so-called “win-win situation”.
Keywords— Globalisation, international production
networks, automobile industry, parts and components,
social network methods, East Asia.
1. Introduction
Integration of countries or regions into the
worldwide exchange network is one of the
significant phenomena of globalisation. In the East
Asian region, increases in trade, particularly in terms
of P&C among countries under the international
production networks (IPNs), are one of the
important factors behind world trade becoming more
increasingly integrated now than ever before [1-3].
Accordingly, countries such as Vietnam, Thailand
and the Philippines, which formerly were merely
buyers of various final products, have become
members of the global production network and are
now engaged in the activity of import and export of
P&C.
The rapid increase in integration network among
countries in the East Asian region, particularly in
high-technology industries such as the automobile
industry, has led to trade networks in that industry
becoming increasingly complex over time [4], [5].
This situation has led many researchers in the field
of economics such as [6-10] to concentrate on the
network of trade structure. In this paper, we
developed summary indices that characterise that
structure and the place of individual countries within
them so as to facilitate discussion of the nature and
development of such networks.
This paper is structured as follows: Section 2
discusses the basic concept of network. Sections 3
and 4 respectively discuss the data and research
methodology of the paper. Section 5 discusses the
findings from global-level, country-level and
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International Journal of Supply Chain Management
IJSCM, ISSN: 2050-7399 (Online), 2051-3771 (Print)
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