Abstract:
This is a study of Malaysian vehicle manufacturer-supplier relationships in the
product development process. The collaboration, referred to as co-
development, is highly important in order for vehicle manufacturers to remain
competitive within this area of globalisation. So far, there have been no studies
on the above subject area within Malaysia, which therefore makes this study
both valuable and immensely important. The motivation comes from the
uniqueness of the Malaysian automotive industry, which is newly established
compared to other countries, and which has also been protected by the
Government since the establishment of first National Car company in the 1980s.
The study has adopted a qualitative approach through exploratory study, and
aims to explore in-depth the co-development practices within Malaysia. With the
adoption of a case study research strategy, data is collected by means of
interviews with consideration to both sides, i.e., local vehicle manufacturers and
their suppliers.
It was found that, within Malaysia, two different approaches of co-development
exist. First, the local suppliers mostly have low design capabilities, and the local
vehicle manufacturer-supplier relationship exists only in terms of manufacturing
components. Moreover, local suppliers have not become involved in the design
process, but have received detailed drawings from vehicle manufacturers.
However, they nevertheless have a freedom to manufacture the product without
significant interference from the vehicle manufacturer. In this study, this type of
supplier is labelled as a ‗freedom to manufacture‘supplier. In contrast, ‗freedom
to design, develop and manufacture‘suppliers—which are mostly overseas
suppliers—are involved in the design process at a very early stage. They are
invited to participate at this point of the product development process in order to
cater to the vehicle manufacturer‘s limited knowledge regarding the product.
The study provides insight into what has happened with regards to the
Malaysian vehicle manufacturer-supplier relationship in the product
development process. It gives an indication of and new knowledge regarding
the co-development of the newly established automotive industry in Malaysia.