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Crisis and Resilience in the Automotive Industry: Dynamic Capabilities and Institutional Context in U.S. and East Asian Automakers during the 2008 Global Financial Crisis
Angelucci, Silvana
Angelucci, Silvana
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Abstract
During the 2008 Global Financial Crisis, structural weaknesses were exposed in the global automotive sector.
This paper examines how dynamic capabilities are constructed and utilized when subjected to systemic financial shocks. Drawing on a qualitative comparative case study of four of the leading automakers – General Motors and Chrysler in the United States, and Toyota and Hyundai in East Asia – the study integrates Dynamic Capabilities Theory and Institutional Theory to explore how companies perceived risks and seized opportunities.
The results suggest that U.S. automakers in a liberal market economy relied on state intervention via bailouts. Their recovery was driven primarily by institutional substitution from outside, rather than local capability. Toyota and Hyundai, operating in coordinated market economies, proved capable of achieving capability-driven resilience through internal acclimatization, operational flexibility, and development without direct state reinforcement.
The findings indicate that resilience is a function of the interaction between institutional models and capabilities. Short-term stabilization or long-term renewal depends on the extent to which institutional environments facilitate or constrain adaptive behavior. The study provides an integrated view of organizational resilience by incorporating institutional and capability perspectives.
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Date
2025
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Keywords
Automotive industry, Global Financial Crisis (2008), Organizational resilience
Citation
Angelucci, Silvana. "Crisis and Resilience in the Automotive Industry: Dynamic Capabilities and Institutional Context in U.S. and East Asian Automakers during the 2008 Global Financial Crisis". BA in International Business Capstone, John Cabot University, Rome, Italy. 2025.