On the Road to Collaboration : A case study on the support needed for small and medium-sized enterprises in the Stockholm automotive industry

Abstract: Collaboration is a potential for companies to mitigate risk and use different competencies to create possible solutions. This paper identifies that the automotive industry is going through a rapid transformation and needs collaboration as a way to keep up with the fast pace of change. Using a case study based on the automotive industry in the Stockholm region and with a focus on small and middle-sized enterprises (SMEs, companies with less than 250 employees), this paper aims to address how the regional government can facilitate cooperation 1) within the automotive industry and 2) between the regional government and the automotive industry to keep up with the industrial transformations in the year 2030, by identifying the needs of the industry, highlighting potential collaboration engagement practices, and addressing how the regional government can facilitate collaboration. The paper has identified the needs based on product and production development, business model development, and skill development. For product and production development, SMEs need to create new products or find new markets, adapt products to environmental pressures, produce new products quickly, work closer to the customer, move production closer to the customer, and digitalize and automate production. For business model development, companies need to use sustainability as the core of the business model and include services as part of their portfolio. Finally, for skill development, SMEs need to find skills that meet the market, upskill continuously, develop more problem-solving and analytical skills. This study concludes that there are various activities that the regional government can perform, but need assistance from other actors. Firstly, they could strategize with other regional stakeholders, simplify collaboration within the industry, and increase communication and transparency with all industry actors to facilitate collaboration within the industry. Secondly, they could contribute to infrastructure, foster cluster expansion, and contribute to international competitiveness to aid collaboration between the regional government and the industry. The regional government should aim to execute these activities, but need support from relevant stakeholders, to help with the transition to a different industrial environment.