IDEAS home Printed from https://ideas.repec.org/a/bla/tvecsg/v114y2023i3p237-251.html
   My bibliography  Save this article

Mitigating Extra‐Firm Risk Environments – The Case of Turkish Firms in Germany

Author

Listed:
  • Philip Völlers

Abstract

Recent studies claim that the extra‐firm environment as a causal driver for configuration processes in global production networks is understudied. The case of Turkish cross‐border foreign direct investment into Germany is analysed to facilitate a better understanding of how transnationally embedded firms perceive and respond to extra‐firm risk environments. The global production network lens frames the discussion, applying the analytical categories of embeddedness, risk and value. Qualitative interviews with 15 Turkish firm managers in Germany and 24 experts in the field of Turkish‐German business relations were conducted. The analysis shows that transnationally embedded Turkish firms respond to extra‐firm risks by deepening their territorial embeddedness in the host country. While mimicking domestic firms on the level of societal embeddedness, Turkish firms dissociate from risk narratives related to their home country and valorise their association with the German embeddedness context on the firm and network level.

Suggested Citation

  • Philip Völlers, 2023. "Mitigating Extra‐Firm Risk Environments – The Case of Turkish Firms in Germany," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 114(3), pages 237-251, July.
    • Handle: RePEc:bla:tvecsg:v:114:y:2023:i:3:p:237-251
    DOI: 10.1111/tesg.12557
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/tesg.12557
    Download Restriction: no
    File URL: https://libkey.io/10.1111/tesg.12557?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Andrea Ascani & Riccardo Crescenzi & Simona Iammarino, 2016. "Economic Institutions and the Location Strategies of European Multinationals in their Geographic Neighborhood," Economic Geography, Taylor & Francis Journals, vol. 92(4), pages 401-429, October.
    2. Du, Julan & Lu, Yi & Tao, Zhigang, 2008. "Economic institutions and FDI location choice: Evidence from US multinationals in China," Journal of Comparative Economics, Elsevier, vol. 36(3), pages 412-429, September.
    3. World Bank, 2021. "Turkey Economic Monitor, April 2021," World Bank Publications - Reports 35497, The World Bank Group.
    4. Alimadadi, Siavash & Pahlberg, Cecilia, 2014. "A network view of MNC embeddedness in a politically uncertain market: the case of Turkey," Business and Politics, Cambridge University Press, vol. 16(2), pages 339-372, August.
    5. Saygin Cevik & Yasemin Erduman, 2020. "Measuring Monetary Policy Uncertainty and Its Effects on the Economy: The Case of Turkey," Eastern European Economics, Taylor & Francis Journals, vol. 58(5), pages 436-454, September.
    6. Klaus E. Meyer & Ram Mudambi & Rajneesh Narula, 2011. "Multinational Enterprises and Local Contexts: The Opportunities and Challenges of Multiple Embeddedness," Journal of Management Studies, Wiley Blackwell, vol. 48(2), pages 235-252, March.
    7. Jacob Salder & John R. Bryson, 2019. "Placing entrepreneurship and firming small town economies: manufacturing firms, adaptive embeddedness, survival and linked enterprise structures," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 31(9-10), pages 806-825, October.
    8. Neil M. Coe & Yong-Sook Lee, 2013. "'We've learnt how to be local': the deepening territorial embeddedness of Samsung--Tesco in South Korea," Journal of Economic Geography, Oxford University Press, vol. 13(2), pages 327-356, March.
    9. Liena Kano & Eric W. K. Tsang & Henry Wai-chung Yeung, 2020. "Global value chains: A review of the multi-disciplinary literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 577-622, June.
    10. Coe, Neil M. & Yeung, Henry Wai-chung, 2015. "Global Production Networks: Theorizing Economic Development in an Interconnected World," OUP Catalogue, Oxford University Press, number 9780198703914, Decembrie.
    11. Samson Afewerki, 2019. "Firm agency and global production network dynamics," European Planning Studies, Taylor & Francis Journals, vol. 27(8), pages 1483-1502, August.
    12. Liena Kano & Eric W. K. Tsang & Henry Wai-chung Yeung, 2020. "Correction to: Global value chains: A review of the multi-disciplinary literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(8), pages 1353-1353, October.
    13. Crispian Fuller, 2022. "Brexit, the mediation strategies of foreign corporate subsidiaries and regional resilience," Regional Studies, Taylor & Francis Journals, vol. 56(11), pages 1961-1975, November.
    14. Pernilla S. Rafiqui, 2009. "Evolving economic landscapes: why new institutional economics matters for economic geography," Journal of Economic Geography, Oxford University Press, vol. 9(3), pages 329-353, May.
    15. Terje Aven & Ortwin Renn, 2010. "Risk Management and Governance," Risk, Governance and Society, Springer, number 978-3-642-13926-0, June.
    16. Wu, Bing & Deng, Ping, 2020. "Internationalization of SMEs from emerging markets: An institutional escape perspective," Journal of Business Research, Elsevier, vol. 108(C), pages 337-350.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marek Csabay & Zuzana Vincúrová & Milan Stoch & Beáta Stehlíková, 2021. "Enterprise ownership patterns in the least developed districts of Slovakia," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 16(4), pages 807-838, December.
    2. Philip Völlers & Thomas Neise & Philip Verfürth & Martin Franz & Felix Bücken & Kim Philip Schumacher, 2023. "Revisiting risk in the Global Production Network approach 2.0 - Towards a performative risk narrative perspective," Environment and Planning A, , vol. 55(8), pages 1838-1858, November.
    3. Iiris Saittakari & Tiina Ritvala & Rebecca Piekkari & Perttu Kähäri & Sami Moisio & Tomas Hanell & Sjoerd Beugelsdijk, 2023. "A review of location, politics, and the multinational corporation: Bringing political geography into international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(6), pages 969-995, August.
    4. Yang Gao, 2022. "The Belt and Road Initiative and cascading innovation in China’s domestic railway ecosystem," Journal of International Business Policy, Palgrave Macmillan, vol. 5(2), pages 236-258, June.
    5. Henry Wai-chung Yeung, 2021. "The trouble with global production networks," Environment and Planning A, , vol. 53(2), pages 428-438, March.
    6. Liu, Yipeng & Collinson, Simon & Cooper, Sir Cary & Baglieri, Daniela, 2022. "International business, innovation and ambidexterity: A micro-foundational perspective," International Business Review, Elsevier, vol. 31(3).
    7. Keith D. Brouthers & Liang Chen & Sali Li & Noman Shaheer, 2022. "Charting new courses to enter foreign markets: Conceptualization, theoretical framework, and research directions on non-traditional entry modes," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 2088-2115, December.
    8. Mats Forsgren & Ulf Holm, 2022. "Controlling without owning – owning without controlling: A critical note on two extensions of internalization theory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1734-1746, October.
    9. Ron Boschma, 2021. "Global Value Chains from an Evolutionary Economic Geography perspective: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 2134, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2021.
    10. Petr Pavlínek, 2023. "Transition of the automotive industry towards electric vehicle production in the east European integrated periphery," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(1), pages 35-73, February.
    11. Rong (Ratchel) Zeng & Birgitte Grøgaard & Ingmar Björkman, 2023. "Navigating MNE control and coordination: A critical review and directions for future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(9), pages 1599-1622, December.
    12. Linda Calabrese & Neil Balchin, 2022. "Foreign Investment and Upgrading in the Garment Sector in Africa and Asia," Global Policy, London School of Economics and Political Science, vol. 13(S1), pages 34-44, April.
    13. Verbeke, Alain & Hutzschenreuter, Thomas & Pyasi, Nishant, 2021. "The dark side of B2B relationships in GVCs – Micro-foundational influences and strategic governance tools," Journal of Business Research, Elsevier, vol. 135(C), pages 816-828.
    14. Wu, Sihong & Huang, Xinli & Fan, Di & Su, Yiyi & Li, Yongjian, 2023. "Cluster linkages in the global production networks: Exploring the impacts on the expansion of emerging market multinationals," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 171(C).
    15. Oliveira, Luis & Fleury, Afonso & Fleury, Maria Tereza, 2021. "Digital power: Value chain upgrading in an age of digitization," International Business Review, Elsevier, vol. 30(6).
    16. Nadia Zahoor & Francis Donbesuur & Arinze Christian Nwoba & Huda Khan, 2023. "Regional expansion of emerging market SMEs: the roles of domestic market environmental uncertainty and international alliance partner diversity," Asia Pacific Journal of Management, Springer, vol. 40(2), pages 613-643, June.
    17. Lilac Nachum, 2021. "Value distribution and markets for social justice in global value chains: Interdependence relationships and government policy," Journal of International Business Policy, Palgrave Macmillan, vol. 4(4), pages 541-563, December.
    18. Lopez-Vega, Henry & Tell, Fredrik, 2021. "Technology strategy and MNE subsidiary upgrading in emerging markets," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    19. Ron Boschma, 2024. "An Evolutionary Approach to Regional Studies on Global Value Chains," Papers in Evolutionary Economic Geography (PEEG) 2402, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2024.
    20. Grillitsch, Markus & Asheim, Björn & Fünfschilling, Lea & Kelmenson, Sophie & Lowe, Nichola & Lundquist, Karl Johan & Mahmoud, Yahia & Martynovich, Mikhail & Mattson, Pauline & Miörner, Johan & Nilsso, 2023. "Rescaling: An Analytical Lense to Study Economic and Industrial Shifts," Papers in Innovation Studies 2023/11, Lund University, CIRCLE - Centre for Innovation Research.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:tvecsg:v:114:y:2023:i:3:p:237-251. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0040-747X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.