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Flexible Production Systems and Local Machine-Tool Subcontracting: Electronics Components Transnationals in Malaysia

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  • Rasiah, Rajah

Abstract

This paper examines the influence of flexible production systems on the development of local sourcing. Using information gathered on production relationships between firms, it shows that the introduction of flexible production systems in electronics components transnationals in Malaysia stimulated the growth of local machine-tool firms. A combination of market forces and cooperation strengthened subcontracting links between electronics components transnationals and local machine-tool firms such that the latter experienced considerable technological broadening and deepening, thereby transforming them from simple parts to high-precision tooling and automation systems manufacturers. Copyright 1994 by Oxford University Press.

Suggested Citation

  • Rasiah, Rajah, 1994. "Flexible Production Systems and Local Machine-Tool Subcontracting: Electronics Components Transnationals in Malaysia," Cambridge Journal of Economics, Oxford University Press, vol. 18(3), pages 279-298, June.
  • Handle: RePEc:oup:cambje:v:18:y:1994:i:3:p:279-98
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