Digital Transformation of the Italian and Us Automotive Supply Chains: Evidence from Survey Data
Abstract: We provide results from a detailed survey of automation and digitization in firms in the automotive sectors in the United States and Italy. In both countries, we find evidence of heterogeneity of organizational architectures—some firms organize around a “Taylorist” approach and others around a pragmatic approach. We find some notable differences in the adoption and use of new technologies, particularly robots. In the US, robots are considered an effective tool to address skill shortage, but not as much in Italy. This is partly explained by the fact that in the US finding workers who possess the desired skills is seen as a major challenge. Italian firms attribute to robots a higher impact on improving safety conditions in the shop floor. This might explain why Italian firms have adopted more technologies for parts tracking, given they are frequently used to trace all the production processes to guarantee product safety. Overall, firms in both countries appear more likely to adopt robots to increase quality rather than to reduce unit and labor costs. Despite technology adoption is underway (though more in the US), we found that companies in both countries (especially in US) are not automating data collection suggesting that firms are not utilizing the new automation and digitization technologies to their fullest extent but in the “old” way.
