Competitive Pressures and Innovation Pathways of Established Car Manufacturers: A Systematic Literature Review

Abstract

The automotive industry is undergoing a profound transformation characterized by connected, automated, electric and shared mobility (CASE).  While several studies have examined the challenges that these developments pose for established automotive manufacturers (ECMs), there is no synthesis of the literature on the characteristics of ECMs' business in terms of product-related innovation and how new rivals threaten ECMs in this context. This study fills this gap by answering two research questions: 1) How is the business of ECMs characterized with regard to product-related innovations? and 2) How do new rivals threaten ECMs in terms of product-related innovation? We use a systematic literature review approach, performed on ISI Web of Science – Current Contents, with a final sample of 73 studies. The business of ECMs with regard to product-related innovations is characterized by strong internal control, complex vehicle architectures, and long-term development processes. In contrast, new competitors rely on modular architectures, agile development approaches, and new business models to respond more quickly and flexibly to market changes. Emerging rivals challenge ECMs by leveraging new technologies and adopting a strong customer focus. Further research could explore how established approaches from other industries can help ECMs maintain their competitiveness.