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Developing a local supply chain network: The case of Magyar Suzuki in Hungary

Author

Listed:
  • Kaoru Natsuda

    (College of International Management, Ritsumeikan Asia Pacific University, Beppu, Japan
    Faculty of International Management and Business, Budapest Business School, Hungary)

  • Magdolna Sass

    (Faculty of International Management and Business, Budapest Business School, Hungary
    Institute of World Economy, Centre for Economic and Regional Studies, Tóth Kálmán u. 4, Budapest, H-1097 Hungary)

  • László Csonka

    (Faculty of International Management and Business, Budapest Business School, Hungary)

Abstract

This study examines the role of Magyar Suzuki in the Hungarian automotive industry. It is the oldest foreign vehicle manufacturer and a symbol of modernisation in the post-communist era in Hungary. Due to EU's local content rule, Magyar Suzuki, in comparison with its counterparts in the region, has established a locally embedded supply chain network. Magyar Suzuki has facilitated process and product upgrading of the local suppliers in Hungary. Nevertheless, functional upgrading is relatively limited due to automotive multinational corporations' recognition of Hungary as a low-cost production location, a low level of R&D operation, and a small domestic market.

Suggested Citation

  • Kaoru Natsuda & Magdolna Sass & László Csonka, 2022. "Developing a local supply chain network: The case of Magyar Suzuki in Hungary," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 72(4), pages 531-552, December.
    • Handle: RePEc:aka:aoecon:v:72:y:2022:i:4:p:531-552
    DOI: 10.1556/032.2022.00034
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    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • P3 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions

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