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The obstacles of China’s intelligent automobile manufacturing industry development: A structural equation modeling study

Yuhong Cao (School of Management, Shanghai University, Shanghai, China)
Jianxin You (School of Economics and Management, Tongji University, Shanghai, China)
Yongjiang Shi (Institute for Manufacturing, University of Cambridge, Cambridge, UK)
Wei Hu (School of Economics and Trade, Shanghai Urban Construction Vocational College, Shanghai, China)

Chinese Management Studies

ISSN: 1750-614X

Article publication date: 8 January 2020

Issue publication date: 14 April 2020

888

Abstract

Purpose

This paper aims to make a systematic study on the factors that hinder the development of China’s intelligent automobile manufacturing industry; based on comprehensive understanding of these obstacles and by optimization means, ultimately, the healthy and sustainable development of intelligent automobile manufacturing industry in China can be promoted.

Design/methodology/approach

Based on a questionnaire survey of intelligent automobile manufacturing listed companies in China, first, fuzzy semantic scale was adopted to collect respondents’ choices, the fuzzy score function is used to calculate the fuzzy score value and these data are used as the basis for subsequent model analysis. Then, structural equation modeling (SEM) was adopted to analyze the causal relationship between influencing factors to explore the main hinder factors.

Findings

It is found that, in the short term, the backwardness of technological industrialization is the main reason leading to low permeability of intelligent automobile; in the medium term, the imperfect industrial R&D ability and the insufficiency of infrastructure are major causes for high manufacturing cost and low competitiveness of intelligent automobile manufacturing industry; in the long term, the lack of national policy and industrial strategic planning is the main factors affect intelligent automobile manufacturing cost and the industry competitiveness.

Practical implications

The research conclusion has important policy implications for promoting intelligent automobile manufacturing sustainable development. In recent years, China’s intelligent automobile manufacturing industry has gradually stepped out of breeding period; therefore, the role of government should be gradually transformed from participants to managers and regulators. Considering the fact that intelligent automobile cost is very high, and still higher than the cost of fuel vehicle, government should focus on the issues such as improving R&D capabilities, infrastructure construction, policy framework system, legal system and technological industrialization. Specifically, in short-term planning, improving technological industrialization level is the key to development; in medium-term planning, policymakers should focus on the improvement of R&D capabilities and infrastructure; considering the long-term development, establishing appropriate national policies and dealing with the adverse impact of imperfect strategic planning are the most sensible choice.

Originality/value

This paper analyzes the factors that hinder the development of China’s intelligent automobile manufacturing industry for the first time, and provides the basic logic of integration factors at different levels with the development of intelligent automobile to reveal the uniqueness and facts of China’s economic development.

Keywords

Citation

Cao, Y., You, J., Shi, Y. and Hu, W. (2020), "The obstacles of China’s intelligent automobile manufacturing industry development: A structural equation modeling study", Chinese Management Studies, Vol. 14 No. 1, pp. 159-183. https://doi.org/10.1108/CMS-09-2017-0250

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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