Using Knowledge-Based View to Explore the Impact of Supply Network in Automotive Industry

The articulation of supply networks, as an extension of supply chains, seeks to accommodate and explain the commercial complexity associated with the creation and delivery of goods and services from the source of raw materials to their destination in end-customer markets. The concept of supply network describes the mess and complexity of networks which are involved lateral links and two-way exchanges, and included a broad, strategic view of resource acquisition, development, management, and transport. This research focus on what is a supply network and how supply networks can be created operation under knowledge-based view. A theory framework was discussed in the literature review in the automotive industry and operation of supply network. Then, use automobile industry as studies and complements the strategies between assembly companies and in which’s dependent and complex suppliers (component firms) in Taiwan’s. Finally, the results show that these relationships of the automotive network are not confined to the pursuit of short-term economic imperatives of cost reduction but embrace innovations in design and technology, creative research and development and quality improvement.