Outsourcing in Value Chains in China’s Automotive Industry

Abstract

Outsourcing plays an important role in the development of the Chinese automotive industry. The transfer of individual business processes to outsourcing allows you to expand the scale of production and ensure its modernization without a significant increase in costs. However, outsourcing not only improves production efficiency but also contributes to the sustainability of the automotive industry. The purpose of this article is to study the impact of outsourcing in various parts of the value chain of the automotive industry on the sustainability of its development. In addition to the traditional approach that defines three components of sustainable development (economic, social, and environmental), in this study we also analyze the technological one, which characterizes the possibilities of using innovative technologies to achieve sustainable development goals. SWOT analysis was used as a research tool. As a result of the study, the opportunities and risks of outsourcing in various parts of the value chain in the automotive industry were identified. The characteristics of environmental factors are given in terms of how they contribute to the development of outsourcing in the automotive industry. It is concluded that outsourcing in the automotive industry contributes not only to the development of the Chinese economy but also to those countries in which outsourcing work is carried out.