Decision factors for locating in an automotive supplier park: A South African case

Abstract

Decision factors for automotive suppliers to locate in an automotive supplier park were investigated. This was done in the particular context of a developing country and of supply to multiple vehicle manufacturers (OEMs). Decision factor constructs for automotive suppliers to locate in automotive supplier parks were identified from literature, but in the context of developed countries and of supply to a single OEM. A comprehensive construct from literature was tested with suppliers located in the first automotive supplier park (ASP) in South Africa to establish to which extent their decision factors corresponded to those of their counterparts in developed countries. The research design was that of an exploratory case study. It was found that the decision factors from literature were applicable and sufficient for the developing country multiple-OEM context but that the context caused distinct differences in the logistics service provider structure of the park tenants and the ranking of decision factors to locate in the park.