Quality and innovation as drivers for manufacturing competitiveness of automotive parts suppliers: Quality and innovation for automotive sector

Purpose: The purpose of this paper is to identify the causal relationship between the independent variables such as process quality and product innovation in regard to the dependent variable of competitiveness, in the manufacturing sector of the automotive industry, specifically for Tier 1 auto parts manufacturing companies in the state of Nuevo León, México. Design/methodology/approach: Based on a thorough review of the literature, an instrument was designed to measure the competitiveness of automotive industry manufacturing; it was applied to Tier 1 suppliers of automotive parts in the state of Nuevo León, México. Various statistical analysis tests were applied to the results; first, Cronbach's alpha to determine the reliability of the instrument, and next, a factor analysis to measure construct validity. In addition, a multiple linear regression analysis was carried out to identify the causal relationships between the variables analysed. Findings: This study found that process quality as well as product innovation have independent and positive causal relationships with respect to competitiveness in automotive manufacturing. Research limitations/implications: The limitations of this paper are its focus on a single manufacturing sector, application in a single country and small sample size. Practical implications: Companies that supply automotive parts will be able to invest in the key elements of quality and innovation while focusing their efforts on reinforcing their competitiveness. Originality/value: Auto parts suppliers will be able to perform specific actions to improve their quality processes through lean manufacturing and quality assurance practices and by designing new and innovative products that will enhance their competitiveness.