Kaizen in Automotive Innovation: How the Hungarian Automotive Clusters Can Profit From the Adoption of Kaizen Principles – A Literature Review of the Central European Automotive Industry

Abstract

Due to historical, political, and cultural similarities the Central European (CE) domestic market grew to one of the closest and most integrated economic networks of the world. Sharing the necessary technological competencies and resources, industries like the au-tomotive industry arose to cross-bordering ecosystems. In contrast to the supply chains of other consumer goods, Hungary established a suitable environment to become dominant in the primary industry of manufacturing rather than a sole cost-reducing supplier. However, the analysis of current organizational framework of operating automotive enterprises in CE highlighted, that long existing concepts like Kaizen are still not tailored into the day-to-day business concept. Consequent-ly, competitors from other hemispheres might have an impactful market advantage. Thus, the purpose of this paper focuses on the barriers of implementing said organizational changes and identifying necessary steps towards internal reorganisation in Hungary while keeping the se-curity of known and long-established structures alike. By analysing the experiences of neighbouring countries which are also part of the CE supply chain, critical factors are revealed. The findings of the paper elaborate on the positive long-term effects of Kaizen for this specific industrial sector as well as drafting a recommended innovation roadmap for the Hungarian automotive innovation.