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The involvement of Japanese MNEs in the Indonesian automotive cluster

Author

Listed:
  • Dessy Irawati
  • David Charles

Abstract

The Indonesian Government has applied a form of cluster policy in the automotive sector drawing upon multinational enterprises (MNEs) to develop the dynamic capabilities of the industry. Cluster policies are seen by the government as a way to enhance competencies within the automotive cluster in Indonesia, particularly the work organisation for flexible production systems and skills, as well as building up the global-local production networks. Case studies of Toyota and Honda in Indonesia examine the international transfer of technology seen through the perspective of work organisation, in order to assess whether sophisticated Japanese production management technology has been successfully transplanted into Indonesia. These case studies investigate whether there is a successful catching up process, where MNEs through top-down knowledge transfer, are able to advance Indonesian's technological capability in the automotive industry.

Suggested Citation

  • Dessy Irawati & David Charles, 2010. "The involvement of Japanese MNEs in the Indonesian automotive cluster," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 10(2/3), pages 180-196.
    • Handle: RePEc:ids:ijatma:v:10:y:2010:i:2/3:p:180-196
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    Cited by:

    1. Sindy Martínez-Marín & Nataly Puello-Pereira & David Ovallos-Gazabon, 2020. "Cluster Competitiveness Modeling: An Approach with Systems Dynamics," Social Sciences, MDPI, vol. 9(2), pages 1-18, February.
    2. Tomeczek, Artur F., 2022. "The evolution of Japanese keiretsu networks: A review and text network analysis of their perceptions in economics," Japan and the World Economy, Elsevier, vol. 62(C).
    3. Tom Barnes, 2017. "Industry policy in Asia’s demographic giants: China, India and Indonesia compared," The Economic and Labour Relations Review, , vol. 28(2), pages 218-233, June.
    4. Donny Oktavian Syah, 2019. "Identifying vertical partnership among automotive component companies: empirical evidence from automotive industry in Jabodetabek, Indonesia," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-25, December.

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