Supplier Networks and the Importance of Information Technology: Outlook on the European Automotive Industry

The trends in the automotive industry changed radically from the beginning of the 80s. Increasing competition, new systems and developments compelled the companies to re-evaluate and re-design their investments and processes, by extending their networks to other parts of the world in order to gain more market. This trend could be observed first in the Western-European countries and later in Eastern-Europe. With entering new areas the companies had to face with several difficulties coming inter alia from the decisions of supplier network and information system implementation. In our study we analyze the strategic decisions of major carmaker companies entering the Eastern-European market. Our research includes two case studies of the Hungarian automotive sector.