The changing shape of networks: Lessons for the auto industry

Abstract

The global financial crisis has hit carmakers relatively hard as the auto industry around the world is experiencing a sharp decrease in sales. Today, carmakers must consider their strategic positioning in the market, relative to the competition. One way to deepen understanding of corporate positioning from this perspective is to investigate this area using a laboratory experiment. This study examines a business simulation game and evaluates several network characteristics. Our analysis reveals the impact those characteristics have on company performance. The findings also show the applicability of network theory in analyzing the auto industry.