Findings and Discussion

In this chapter, the study first conducts the overview of the research findings from macro- to micro point of view. Second, research will explore some implication and insight based on the results of network analysis. Finally, the limitations and directions will be discussed as well.

5.1.1 Key player in the five overall industrial networks

From the visualization of five overall industrial networks, centrality analysis and structural hole analysis, the auto-assembler occupies the advantage position in these five networks simultaneously.

In the OCN, it can be concluded that the auto-assemblers play an influential role in OCN, who dominate information flow and business collaboration performance.

In the CoRDN, although auto-assemblers control the R&D requirement, they cannot handle all of components modification and localization process without component manufacturers’ technological and manufacturing supports. This indicates that the inter-dependence exists among them.

In the KSN, the auto-assembler located on the knowledge innovation position plays as a knowledge sharing initiator and as a coordinator to minimize the interest conflicts between participators. They would also play as a cross-field/industry innovation starter and gradually form a platform for exchanging information, knowledge, and technology.

The ProN illustrates the pattern of industry integration. On one hand, the auto-assembler seeks to integrate different business category companies not only from vertical/ horizontal integration but also from diversity aspect. On the other hand, the integration intent of component manufacturers would be positioned to be an all-in-one components provider group by building proprietorship.

There are several competitive clusters in the CompN. From the viewpoint of in-degree centrality, research can detect the top three common competitors and deduce the distribution of market share in any one of competition clusters.

Interestingly, a common situation shown in automobile industry is cross-field/industry products competition. This also reflects that manufacturers in automobile industry or one comes from other industry may have various technology abilities or well-applied capabilities.

What’s more, the figures of KSN, CoRDN and CompN also show the phenomenon of competition among competitors. The study attributes this unusual situation to the auto-assemblers’ special role and position.

5.1.2 Information sharing/connectivity

With QAP, the study found out that different kinds of networks are entwined tightly, especially for collaborative, co-R&D and knowledge sharing. Because of this, the key players have vital influence on information flow across industry.

The analysis result proves that the auto-assembler actually play an influential role in the automobile industry. Since they locate on three network structural hole simultaneously, they can leverage the pattern of CSDS and arrange the beneficial resources around them. This is why they are able to dominate the three networks and smooth away different interest conflicts from various parties. The ecology of

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automobile industry is mostly controlled by major auto-assemblers. The study considers auto-assemblers as a” stimulator” who injects critical factors and lead to chemical change.

The others components producers also play a distinctive characters. These components producers contain chemical, glass, battery, and rubber manufacturers.

They usually play complementary provider who bring in related technology from outside and diffuse it to other CSDS members. So they may act as a “catalyzer”

who introduce and lead to innovation from distinct field/industry.

5.1.3 Network position and inter-organizational relationship

In this section, the author takes a closer look at specific CSDS and discusses pattern of network position and the relation between position and IOR. After the core-periphery model analysis, the final fit index can be interpreted as a correlation coefficient indicating that these CSDS modestly conform to a core-periphery structure.

After that, the research uses these two groups as our compared objectives to understand the different attitude toward inter-organizational relationship. It can be found in this study that the bias toward trust, commitment and shared vision between core and peripheral actors do not exist.

More specifically, members of the CSDS possess the positive attitude toward any collaboration or activities hosted by auto-assembler. Also, because of trusting each other, the information come from core or periphery actors would not present un-reliability.

The shared vision created by auto-assemblers plays a balance keeper to keep every actor in the right pathway to the wonderful future and minimizes the interest oppositions. Under this circumstance, actors harmonize the industrial situation and

keep a good relationship with auto-assembler in order to gain more opportunities.

5.1.4 Perception of CSDS

The final discuss is about the relation between network position/properties and perceptions (evaluations) of CSDS function, benefit and performance. First finding is the higher rate of normalized in-degree centrality firms have, the greater internal benefit perception is.

In other words, the more popular actor is, the higher positive perception about financial, human and physical resources it can handle. The high in-degree centrality actor would be seen as a very important role. If core actor has any requirement, other actors would provide as possible as they can. Under this situation, the central node has many opportunities to dominate and control in accordance with its intention. The auto-assembler in this case is like a resources dominator, who control financial, human talents, technology, and equipment, and information integration, etc.

The second finding is that normalized in-degree centrality has positive effect on perception of performance. The result is similar to previous outcome of internal benefit. The result not only happens to auto-assembler but to the first-tier component manufacturers. These first-tier component manufacturers may play a component-assembler role, similar to auto-assembler, who is center of other supportive second-tier parts producers.