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Globalization, Convergence, and the Transformation of International Production Networks in Electronics in East Asia

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  • Ernst, Dieter
  • Ravenhill, John

Abstract

Globalization is often said to lead to convergence among firm strategies. Significant differences existed in the organization of the production networks of Japanese and US firms in electronics in East Asia at the beginning of the 1990s. The sources of these differences lie in part in the relative newness of the export-orientation of Japanese companies, in weaknesses in Japanese corporate governance, in the geographical proximity of East Asian plants to Japan, and in the product mix of Japanese firms. An opening of Japanese production networks occurred in the first half of the 1990s in part in response to pressures associated with various forces of globalization, including the diffusion of capabilities, changes in technology, and the internationalization of the Japanese economy. This opening of Japanese networks caused them to converge towards their American counterparts. Partial convergence, however, coexisted with persistent diversity relative to the behavior of US networks. While nationality continued to matter, other factors affecting firms have to be incorporated into the analysis to explain the persistent diversity of firm behaviors.

Suggested Citation

  • Ernst, Dieter & Ravenhill, John, 1999. "Globalization, Convergence, and the Transformation of International Production Networks in Electronics in East Asia," Business and Politics, Cambridge University Press, vol. 1(1), pages 35-62, April.
  • Handle: RePEc:cup:buspol:v:1:y:1999:i:01:p:35-62_00
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    Cited by:

    1. Dieter Ernst, 2002. "Digital Information Systems and Global Flagship Networks: How Mobile is Knowledge in the Global Network Economy," Economics Study Area Working Papers 48, East-West Center, Economics Study Area.
    2. René Belderbos & Jianglei Zou, 2006. "Foreign Investment, Divestment and Relocation by Japanese Electronics Firms in East Asia," Asian Economic Journal, East Asian Economic Association, vol. 20(1), pages 1-27, March.
    3. Dieter Ernst, 2001. "The Internet's Effects on Global Production Networks: Challenges and Opportunities for Managing in Developing Asia," Economics Study Area Working Papers 33, East-West Center, Economics Study Area.
    4. Aurélien Acquier & Bertrand Valiorgue & Thibault Daudigeos, 2017. "Sharing the Shared Value: A Transaction Cost Perspective on Strategic CSR Policies in Global Value Chains," Journal of Business Ethics, Springer, vol. 144(1), pages 139-152, August.
    5. Linqing Liu & Shiye Mei, 2016. "Visualizing the GVC research: a co-occurrence network based bibliometric analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 109(2), pages 953-977, November.
    6. Dieter Ernst & Linsu Kim, 2001. "Global Productions Networks, Knowledge Diffusion, and Local Capability Formation. A Conceptual Framework," Economics Study Area Working Papers 19, East-West Center, Economics Study Area.
    7. Dieter Ernst, 2001. "The New Mobility of Knowledge: Digital Information Systems and Global Flagship Networks," Economics Study Area Working Papers 30, East-West Center, Economics Study Area.
    8. Jue Wang & Yingqi Wei & Xiaming Liu & Chengang Wang & Hua Lin, 2014. "Simultaneous Impact of the Presence of Foreign MNEs on Indigenous Firms’ Exports and Domestic Sales," Management International Review, Springer, vol. 54(2), pages 195-223, April.
    9. Dieter Ernst & Jan Fagerberg & Jarle Hildrum, 2002. "Do Global Production Networks and Digital Information Systems Make Knowledge Spatially Fluid?," Economics Study Area Working Papers 43, East-West Center, Economics Study Area.

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