Multi-Period efficiency and productivity changes in global Automobile: A VRS-VRM and SML productivity index approach

The implications of this study are as follows. First, the annual efficiency of global automakers is sensitive to the internal capacity utilization and external macro- or microeconomic environment surrounding individual automakers. In particular, European automakers tended to show low efficiency caused by overcapacity and low capacity utilization, indicating a need for improving efficiency by adjusting production capacity. Second, this study explores that dynamic capabilities can be used successfully for improving global automaker's efficiency. Therefore, automakers need their specific and unique dynamic capabilities harmonizing internal competencies with external changes to achieving competitive advantage.