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Flexible Production Systems and Local Machine-Tool Subcontracting: Electronics Components Transnationals in Malaysia

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  • Rasiah, Rajah

Abstract

This paper examines the influence of flexible production systems on the development of local sourcing. Using information gathered on production relationships between firms, it shows that the introduction of flexible production systems in electronics components transnationals in Malaysia stimulated the growth of local machine-tool firms. A combination of market forces and cooperation strengthened subcontracting links between electronics components transnationals and local machine-tool firms such that the latter experienced considerable technological broadening and deepening, thereby transforming them from simple parts to high-precision tooling and automation systems manufacturers. Copyright 1994 by Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Cambridge Journal of Economics.

Volume (Year): 18 (1994)
Issue (Month): 3 (June)
Pages: 279-98

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Handle: RePEc:oup:cambje:v:18:y:1994:i:3:p:279-98

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Cited by:
  1. Bryan K. Ritchie, 2004. "Politics and Economic Reform in Malaysia," William Davidson Institute Working Papers Series 2004-655, William Davidson Institute at the University of Michigan.
  2. Tomohiro Machikita & Yasushi Ueki, 2011. "The Impact of Face-to-face and Frequent Interactions on Innovation: Evidence from Upstream-Downstream Relations," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(3), pages 519-548, October.
  3. Rasiah, Rajah, 2003. "Foreign ownership, technology and electronics exports from Malaysia and Thailand," Journal of Asian Economics, Elsevier, vol. 14(5), pages 785-811, October.
  4. Pauline Ratnasingam, 2013. "A Generic Framework for Trust in the Innovation Process," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(1), pages 71-90, April.
  5. Suresh Narayanan & Mehrshad Parvin Hosseini, 2014. "Drivers of Innovation in the Malaysian Services Sector: An Analysis Based on Firm-Level Data," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 6(1), pages 95-118, April.
  6. Claudia de Fuentes & Gabriela Dutrénit, 2013. "SMEs’ Absorptive Capacities and Large Firms’ Knowledge Spillovers: Micro Evidence from the Machining Industry in Mexico," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(1), pages 1-30, April.
  7. Ivarsson, Inge & Alvstam, Claes Goran, 2005. "Technology transfer from TNCs to local suppliers in developing countries: A study of AB Volvo's truck and bus plants in Brazil, China, India, and Mexico," World Development, Elsevier, vol. 33(8), pages 1325-1344, August.
  8. Hu, Zhining & Zheng, Jianghuai & Wang, Jialing, 2011. "Impact of industrial linkages on firm performance in development zones," MPRA Paper 33127, University Library of Munich, Germany.
  9. Lall, Sanjaya & Narula,Rajneesh, 2004. "FDI and its role in economic development: Do we need a new agenda?," Research Memorandum 019, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  10. Rajah Rasiah, 2011. "The Role of Institutions and Linkages in Learning and Innovation," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(2), pages 165-172, July.
  11. Rajah Rasiah & Jebamalai Vinanchiarachi, 2013. "Institutional Support and Technological Upgrading: Evidence from Dynamic Clusters in Latin America and Asia," World Economic Review, World Economics Association, vol. 2013(2), pages 24, February.
  12. Irina Soboleva, 2011. "Patterns of Human Capital Development in Russia: Meeting the Challenge of Market Reforms and Globalization," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(2), pages 235-257, July.
  13. Narula,Rajneesh & Marin,Anabel, 2003. "FDI spillovers, absorptive capacities and human capital development: evidence from Argentina," Research Memorandum 018, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  14. Altenburg, Tilman & Meyer-Stamer, JORG, 1999. "How to Promote Clusters: Policy Experiences from Latin America," World Development, Elsevier, vol. 27(9), pages 1693-1713, September.
  15. Ritchie, Bryan K., 2005. "Coalitional politics, economic reform, and technological upgrading in Malaysia," World Development, Elsevier, vol. 33(5), pages 745-761, May.
  16. Rajah RASIAH, 2007. "R&D and Export Intensities in Automotive Parts Firms in China, Malaysia, Philippines and Taiwan: Does Ownership Matter?," Discussion papers 07025, Research Institute of Economy, Trade and Industry (RIETI).
  17. Moran, Theodore H, 2008. "A perspective from the MNE Declaration to the present : mistakes, surprises, and newly important policy implications," ILO Working Papers 417617, International Labour Organization.
  18. Yuri Sadoi, 2011. "Technology Accumulation and the Division of Labour between China, Taiwan and Japan: Taiwanese Automotive Parts, and Die and Mould Firms in China," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(3), pages 397-414, October.
  19. Rasiah, Rajah, 2002. "Systemic Coordination and Human Capital Development: Knowledge Flows in Malaysia's MNC-Driven Electronics Clusters," UNU-INTECH Discussion Paper Series 07, United Nations University - INTECH.
  20. Hobday, Michael & Rush, Howard, 2007. "Upgrading the technological capabilities of foreign transnational subsidiaries in developing countries: The case of electronics in Thailand," Research Policy, Elsevier, vol. 36(9), pages 1335-1356, November.
  21. Kim, Kee Beom, 2006. "Direct employment in multinational enterprises : trends and implications," ILO Working Papers 393946, International Labour Organization.
  22. Rasiah, Rajah & Lin, Yeo, 2003. "The Role Of Market, Trust and Government in the Development of the Information Hardware Industry in Taiwan," UNU-INTECH Discussion Paper Series 10, United Nations University - INTECH.
  23. Narula, Rajneesh & Marin, Anabel, 2005. "Foreign direct investment spillovers, absorptive capacities and human capital development : evidence from Argentina," ILO Working Papers 378212, International Labour Organization.

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