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Toward a More Embedded Production System? Automotive Supply Networks and Localized Capabilities in Poland

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  • BOLESŁAW DOMAŃSKI
  • KRZYSZTOF GWOSDZ
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    Abstract

    The article addresses the embeddedness of automotive production in Poland in terms of supply networks. A comprehensive analysis of more than 550 suppliers, supported by company interviews, shows that foreign-owned producers become embedded in Poland in the automotive supplier networks they have largely created themselves. Numerous local suppliers gain access to export markets and become integrated in a Europe-wide production system. This trend has been accompanied by significant upgrading of foreign affiliates and domestic firms in terms of product quality, cost efficiency, adaptability, and fast response, but far less in nonproduction competences such as R&D. It is argued that the competences of automotive suppliers in Poland are built upon the localized capabilities, which are a product of the dynamic interplay between the activity of foreign firms and the changing local environment comprising various stakeholders. The localized capabilities constitute elements of a company's sunk costs and are embedding automotive producers in Poland. At the same time, the dependence on decisions and innovations from abroad and the limited development of local design and brands may constrain the future role of suppliers from the semiperipheral economy of Poland. Copyright (c) 2009 Copyright the Authors. Journal compilation (c) 2009 Wiley Periodicals, Inc..

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    Bibliographic Info

    Article provided by Gatton College of Business and Economics, University of Kentucky in its journal Growth and Change.

    Volume (Year): 40 (2009)
    Issue (Month): 3 ()
    Pages: 452-482

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    Handle: RePEc:bla:growch:v:40:y:2009:i:3:p:452-482

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    Web page: http://www.blackwellpublishing.com/journal.asp?ref=0017-4815

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    Cited by:
    1. Davide Bubbico, 2014. "Economic Actors and Local Institutions in Activities in Support of the Automotive Sector in Southern Italy," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, January.
    2. Vincent FRIGANT (GREThA), 2011. "French mega-suppliers’ trajectories during the modular era: some evidences on Faurecia, Valeo and Plastic Omnium," Cahiers du GREThA 2011-20, Groupe de Recherche en Economie Théorique et Appliquée.
    3. Simona, Gentile-Lüdecke & Axèle, Giroud, 2012. "Knowledge Transfer from TNCs and Upgrading of Domestic Firms: The Polish Automotive Sector," World Development, Elsevier, vol. 40(4), pages 796-807.
    4. Vincent FRIGANT, 2013. "Une comparaison de l’internationalisation des chaînes d’approvisionnement automobiles allemande et française," Cahiers du GREThA 2013-09, Groupe de Recherche en Economie Théorique et Appliquée.
    5. Vincent FRIGANT (GREThA, UMR CNRS 5113) & Jean-Bernard LAYAN (GREThA, UMR CNRS 5113), 2010. "A comparative analysis of automobile parts trade exchange between France and Germany: crossing international economics and industrial dynamics (In French)," Cahiers du GREThA 2010-17, Groupe de Recherche en Economie Théorique et Appliquée.

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