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Abstract

An increasing amount of global investment, enlarging project complexity in terms of product and process development, and rising technology innovation pressure fueled by environmental and economic restrictions create a shift in dynamics within the global aeronautical manufacturing industry’s value and supply chains. This paper tries to shed light on the changing business environment for 1st and 2nd tier suppliers of the aeronautical industry, whilst focusing on current dynamics in the East-Asian region. With receiving extended development responsibilities from global acting aircraft manufacturers, 1st and 2nd tier contractors face momentous possibilities and threads in the creation of sustainable competitive advantage. The various research findings describe a volatile business environment in which 1st and 2 nd tier suppliers cannot solely rely on aircraft manufacturers efforts to integrate the industry’s value chain. Suppliers are asked to actively participate in supply chain management to utilize peripheral and global networks for knowledge and innovation sharing and to derive maximum cost efficiency.