Dynamic System Analysis of R&D Based on Localization Capabilities in the Commercial Auto Industry

Subject Areas : Business Strategy

Soraya Lashgari ¹ , Sadegh Abedi ² , Seyedjavad Iranban ³

1 - Department of Technology Management, Management and Economics Faculty, Science and Research Branch, Islamic Azad University, Tehran, Iran
2 - Department of Industrial Management, Qazvin Branch, Islamic Azad University, Qazvin, Iran
3 - Department of Management, Shiraz Branch, Islamic Azad University, Shiraz, Iran

Received: 2020-11-16 Accepted : 2021-04-22 Published : 2021-06-16

Keywords: R&D, System Dynamics, Automotive Industry, Localization Capabilities,

Abstract :

According to published reports on the level of internalization of commercial vehicles, it shows that most carmakers pursue a minimal domestic manufacturing policy and less have a policy of increasing domestic manufacturing on their agenda. The most important research gaps are need to study R&D activities in the form of a dynamic system in the automotive industry based on the three variables of supply network capabilities, product innovation and process. The purpose of this study is to provide a dynamic model to investigate the behavior of a commercial vehicle R&D system. The present study is applied in terms of purpose. The basis of the system analysis is previous research as well as information obtained from interviews with automotive industry experts. For this purpose, first the variables affecting the cycle of R&D activities are studied and modeling is presented using the dynamics approach. Also, various policies on the performance of the development research cycle based on the time of knowledge acquisition and product introduction have been simulated and analyzed. The results of system performance simulation show that the weak share of research and development budget along with low and limited market share and lack of proper investment makes the research and development capability at an unfavorable level during the next 10 years. Therefore, it is suggested that the necessary measures in this regard be taken in the fields of product sales marketing along with appropriate investment in research and development.

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