IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v38y2006i7p1229-1247.html
   My bibliography  Save this article

Transnational Corporations and ‘Obligated Embeddedness’: Foreign Direct Investment in China's Automobile Industry

Author

Listed:
  • Weidong Liu

    (Institute of Geographical Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing, 100101, China)

  • Peter Dicken

    (School of Environment and Development, University of Manchester, Manchester M13 9PL, England)

Abstract

With the aid of an empirical case study of the automobile industry in China, we explore how, under certain political–economic conditions, the investments of transnational corporations (TNCs) can be shaped to meet the state's objectives. We develop the concept of ‘obligated embeddedness’ to capture the dynamics of this process. We show that foreign direct investment in the automobile industry in China is a type of market-led and embedded investment which is characterised by joint ventures and the follow-up network configurations. However, to achieve such obligated embeddedness on the part of TNCs—and for the state and its citizens to gain its benefits—the state not only has to have the theoretical capacity to control access to assets located within its territory, but also the power actually to determine such access.

Suggested Citation

  • Weidong Liu & Peter Dicken, 2006. "Transnational Corporations and ‘Obligated Embeddedness’: Foreign Direct Investment in China's Automobile Industry," Environment and Planning A, , vol. 38(7), pages 1229-1247, July.
  • Handle: RePEc:sae:envira:v:38:y:2006:i:7:p:1229-1247
    as

    Download full text from publisher

    File URL: http://epn.sagepub.com/content/38/7/1229.abstract
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sivakumaran, Thillai & Sprenger, Philipp & Toth, Michael & Henke, Michael, 2015. "Market Barrier Integrated Approach for Manufacturing Footprint Decision Support," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Sustainability in Logistics and Supply Chain Management: New Designs and Strategies. Proceedings of the Hamburg International Conference of Logistics , volume 21, pages 121-151, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    2. Crispian Fuller & Nicholas A Phelps, 2018. "Revisiting the multinational enterprise in global production networks," Journal of Economic Geography, Oxford University Press, vol. 18(1), pages 139-161.
    3. Guanie Lim, 2014. "The Internationalisation of Mainland Chinese Firms into Malaysia: From Obligated Embeddedness to Active Embeddedness," Journal of Current Southeast Asian Affairs, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 33(2), pages 59-90.
    4. Wang, Cassandra C. & Wu, Aiqi, 2016. "Geographical FDI knowledge spillover and innovation of indigenous firms in China," International Business Review, Elsevier, vol. 25(4), pages 895-906.

    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:sae:envira:v:38:y:2006:i:7:p:1229-1247. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.