Navigating uncertainty

: analyzing the impact of the global chip shortage on an original equipment manufacturer’s strategy

Abstract

Since 2020, the global semiconductor shortage has significantly challenged industriesworldwide, with still no solution in sight to date. Especially the car industry has been struckhard, with a lack of semiconductors nearly bringing car production to a complete stop. Thisthesis explores how an Original Equipment Manufacturer (OEM) was forced to adapt itsproduction strategy due to the chip crisis by examining which dynamic capabilities arenecessary for them to succeed now and in the future. A pedagogical case study is used inwhich students are given a real-world scenario to assess an OEM's crisis managementstrategy. Semi-structured interviews with industry professionals, the OEM's productmanagement team and secondary data were used to investigate the issue further. The findingsof the thesis highlight three main points: (1) The need to modernize traditional car manufacturing by enhancing software integration in assembly procedures (2) The need to restructure supplier relations and the global semiconductor supply chain network. (3) The need for better risk management and order forecasting through evolving technology and sharing vital data along the supply chain. The thesis underlines both the beneficial and adverse implications of rapidly advancing technology on traditional car manufacturing and how this relates to a company's successful utilization of dynamic capabilities.

Date of Award	24 Jan 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Nuno Cardeal (Supervisor)