| Abstract [eng] |
Added value income in the Lithuanian automotive industry remains low compared to countries with similar capabilities and characteristics. The export data of the Lithuanian automotive industry was analyzed and it was observed that country’s position remains at the medium which correlates to the fact that participation in the supply chain is not significantly improving throughout the years. There are only four businesses in the country that operate only in the automotive industry. The governance type of Lithuania’s supply chain companies of the automotive industry remains captive or hierarchy which leads to low to medium added value income. In such a way global value chain companies extract more value-added outside the Lithuanian borders. In order to understand where the most added value lies it is necessary to divide the supply chain into several stages and identify areas where added value is the highest. To achieve participation in the highest added value supply chain stage it is necessary to understand the country’s characteristics that lead to such distribution. Given the fact that Lithuania’s exports are improving it is necessary to set up a development plan to be able to step up into supply chain areas that would be the most beneficial for the country. Due to this reason analysis of Lithuanian characteristics is made and a qualitative analysis of expert surveys is conducted. Data provides a comprehensive look of standpoint and the ability to absorb added value in terms of participation in automotive supply chains. Conducted analysis has identified the gap indicators which must be further developed to increase countries’ competitiveness and participation in international trades in the automotive industry. Furthermore, it was identified that Lithuania has to develop its workforce in a way that would satisfy leading countries’ requirements. In addition, the country must invest in certain areas that shape countries' ability to participate in the further stages of a supply chain. Moreover, as leading countries are evolving, supply chains evolve at a certainly similar pace. Due to this reason, it is important to analyze automotive industry trends which could lead Lithuania to upgrade its added value income and a better position in the supply chain. It was observed that Lithuania is currently struggling with social, economic, and environmental factors that would improve the country’s participation in the supply chains. Therefore, recommendations on improvement areas and paths were conducted and provided in the research. |
