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Between Internationalisation and Proximity: the internationalisation process of automotive first tier suppliers

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Author Info
Vincent FRIGANT (GREThA)

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Abstract

The paper analyses the strategies of internationalization pursued by first tier automotive suppliers (FTS). The advent of modular production in this sector implies many changes in vertical relationships, which can in turn be used to explain the causes and forms of suppliers’ internationalization. The paper tries to explain internationalization patterns via an analytical grid wherein proximity needs are portrayed as a function of the complexity and exclusivity of inter-firm interactions. The argument applied in this article is broken down into three sections: the first reconsiders the transformations induced by modularization; the second presents some stylized facts about the internationalization of FTS; and the third part both presents an analytical grid and derives its implications in terms of location of suppliers.

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Publisher Info
Paper provided by Groupe de Recherche en Economie Théorique et Appliquée in its series Cahiers du GREThA with number 2007-13.

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Date of creation: 2007
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Handle: RePEc:grt:wpegrt:2007-13

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Related research
Keywords: Internationalisation; Modularity; Industrial Geography; Vertical Relationships; First Tier Suppliers; Automotive;

Find related papers by JEL classification:
L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment
R3 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

This paper has been announced in the following NEP Reports:

This item is featured on the following reading lists:
  1. Studies on the automobile industry
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Brusoni, Stefano & Prencipe, Andrea, 2001. "Unpacking the Black Box of Modularity: Technologies, Products and Organizations," Industrial and Corporate Change, Oxford University Press, vol. 10(1), pages 179-205, March.
  2. Byron Gangnes & Ari Van Assche, 2004. "Modular Production Networks in Electronics: the Nexus between Management and Economics Research," Working Papers 21-2004, Singapore Management University, School of Economics. [Downloadable!]
    Other versions:
  3. Andersen, Poul Houman & Christensen, Poul Rind, 2005. "Bridges over troubled water: suppliers as connective nodes in global supply networks," Journal of Business Research, Elsevier, vol. 58(9), pages 1261-1273, September. [Downloadable!] (restricted)
  4. Jörn Kleinert, 2003. "Growing Trade in Intermediate Goods: Outsourcing, Global Sourcing, or Increasing Importance of MNE Networks?," Review of International Economics, Blackwell Publishing, vol. 11(3), pages 464-482, 08. [Downloadable!] (restricted)
    Other versions:
  5. Robert C. Feenstra, . "Integration Of Trade And Disintegration Of Production In The Global Economy," Department of Economics 98-06, California Davis - Department of Economics. [Downloadable!]
    Other versions:
  6. Ulrich, Karl, 1995. "The role of product architecture in the manufacturing firm," Research Policy, Elsevier, vol. 24(3), pages 419-440, May. [Downloadable!] (restricted)
  7. Richard N. Langlois, 2001. "The Vanishing Hand: the Changing Dynamics of Industrial Capitalism," Economic History 0110001, EconWPA. [Downloadable!]
    Other versions:
  8. Timothy J. Sturgeon, 2002. "Modular production networks: a new American model of industrial organization," Industrial and Corporate Change, Oxford University Press, vol. 11(3), pages 451-496, June.
  9. Yannick LUNG (GRES-IFReDE-E3i and GERPISA), 2003. "The changing geography of the European automobile system," Cahiers du GRES 2003-10, Groupement de Recherches Economiques et Sociales. [Downloadable!]
  10. Langlois, Richard N. & Robertson, Paul L., 1992. "Networks and innovation in a modular system: Lessons from the microcomputer and stereo component industries," Research Policy, Elsevier, vol. 21(4), pages 297-313, August. [Downloadable!] (restricted)
  11. Timothy J. Sturgeon, 2003. "What really goes on in Silicon Valley? Spatial clustering and dispersal in modular production networks," Journal of Economic Geography, Oxford University Press, vol. 3(2), pages 199-225, April.
  12. Vincent Frigant, 2002. "Geographical proximity and supplying relationships in modular production," International Journal of Urban and Regional Research, Blackwell Publishing, vol. 26(4), pages 742-755, December. [Downloadable!] (restricted)
  13. Michael Hobday & Andrew Davies & Andrea Prencipe, 2005. "Systems integration: a core capability of the modern corporation," Industrial and Corporate Change, Oxford University Press, vol. 14(6), pages 1109-1143, December.
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