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Boundaries of firms and catching up by latecomers in global production networks : the case of a Mexican auto-parts manufacturer

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  • Hoshino, Taeko

Abstract

For manufacturing firms in developing countries, there are high barriers to entry and to catching up with competitors in their global production networks (GPNs). This paper examines the case of a Mexican auto-parts manufacturer that succeeded in catching up in the automotive GPN. The author proposes that the door to GPNs is open thanks to frequent changes in the boundaries of firms, and also stresses the importance of the necessary conditions that generate opportunities, including institutional settings that facilitate market entry and catching up, and capability building by firms hopeful of entry.

Suggested Citation

  • Hoshino, Taeko, 2015. "Boundaries of firms and catching up by latecomers in global production networks : the case of a Mexican auto-parts manufacturer," IDE Discussion Papers 492, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper492
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    References listed on IDEAS

    as
    1. Hoshino, Taeko, 1996. "Privatization of Mexico's public enterprises and the restructuring of the private sector," The Developing Economies, Institute of Developing Economies, Japan External Trade Organization(JETRO), vol. 34(1), pages 34-60, March.
    2. Timothy Sturgeon & Johannes Van Biesebroeck & Gary Gereffi, 2008. "Value chains, networks and clusters: reframing the global automotive industry," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 297-321, May.
    3. Sanjaya Lall & Manuel Albaladejo & Jinkang Zhang, 2004. "Mapping fragmentation: Electronics and automobiles in East Asia and Latin America," Oxford Development Studies, Taylor & Francis Journals, vol. 32(3), pages 407-432.
    4. Jorge Carrillo, 2004. "Transnational Strategies and Regional Development: The Case of GM and Delphi in Mexico," Industry and Innovation, Taylor & Francis Journals, vol. 11(1-2), pages 127-153.
    5. Peter Wad, 2008. "The Development of Automotive Parts Suppliers in Korea and Malaysia: A Global Value Chain Perspective," Asia Pacific Business Review, Taylor & Francis Journals, vol. 14(1), pages 47-64.
    6. Arturo A. Lara & Gerardo Trujano & Alejandro Garcia-Garnica, 2005. "Modular production and technological up-grading in the automotive industry: a case study," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 5(2), pages 199-215.
    7. Justin Barnes & Raphael Kaplinsky, 2000. "Globalization and the Death of the Local Firm? The Automobile Components Sector in South Africa," Regional Studies, Taylor & Francis Journals, vol. 34(9), pages 797-812.
    8. Hoshino, Taeko, 1993. "The Alfa Group: the decline and resurgence of a large-scale indigenous business group in Mexico," The Developing Economies, Institute of Developing Economies, Japan External Trade Organization(JETRO), vol. 31(4), pages 511-534, December.
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    More about this item

    Keywords

    Mexico; Automobile industry; Business enterprises; Industrial policy; Exports; Boundary of firms; Global production network (GPN); Auto-parts; ISI; Export industrialization; Nemak; Alfa; Ford;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • N66 - Economic History - - Manufacturing and Construction - - - Latin America; Caribbean
    • N86 - Economic History - - Micro-Business History - - - Latin America; Caribbean
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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