Identifying Driving Variables and Paths of Competitive Advantage for International High-Speed Rail Rolling Stock Contractors

Abstract

Competitive advantage is essential for the international high-speed rail (HSR) rolling stock contractors winning orders and surviving in the fierce global market. To achieve it, it is necessary to identify its driving variables and formation paths. Based on the literature review, 24 driving variables were identified and packaged into six categories. Meanwhile, the hypothetical relationships among six packages were carried out based on the resource-capability-performance paradigm. After a pilot study, a questionnaire survey was conducted to investigate the relative importance of these driving variables. To test the reliability of the survey data and identify the most important driving variable, descriptive analysis was conducted. After that, partial least squares structural equation modeling (PLS-SEM) was carried out to verify the hypothesized paths. The descriptive analysis result indicates the top five crucial variables, i.e., technical reliability, brand impact, research and development (R&D) innovation, industrial license certificate, and technical absorption. The PLS-SEM result shows that eight of nine hypothesized paths are significant. The findings of this paper help international HSR rolling stock contractors better understand the driving variables and formation paths of competitive advantage. Furthermore, this paper will contribute to the body of knowledge on competition in the global HSR market.