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Local Sourcing by Multinational Enterprise Plants: Evidence from the UK Regions and the Implications for Policy

Author

Listed:
  • Mike Crone

    (Northern Ireland Economic Research Centre, Queen's University Belfast, 46 - 48 University Road, Belfast BT7 1NJ, Northern Ireland)

Abstract

New empirical evidence on local sourcing by multinational enterprise plants in two UK regions (Yorkshire and The Humber and Northern Ireland) is presented and compared with evidence from other UK regions. The proportion of material inputs sourced locally is generally quite low in both regions and is broadly in line with that observed elsewhere. The scope for increasing the level of local sourcing through policy intervention is then examined and the suitability of various policy models for the UK regions is considered. A number of obstacles to greater local sourcing are identified including the sourcing strategies employed by multinationals and problems of availability, capacity, and competitiveness in local supply bases. The scope for policy intervention, it is argued, is quite limited but supplier-development policies designed to tackle issues of supplier capacity and competitiveness have greater potential than simple ‘brokering’ services.

Suggested Citation

  • Mike Crone, 2002. "Local Sourcing by Multinational Enterprise Plants: Evidence from the UK Regions and the Implications for Policy," Environment and Planning C, , vol. 20(1), pages 131-149, February.
    • Handle: RePEc:sae:envirc:v:20:y:2002:i:1:p:131-149
    DOI: 10.1068/c0026
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    References listed on IDEAS

    as
    1. Mike Crone & Stephen Roper, 2001. "Local Learning from Multinational Plants: Knowledge Transfers in the Supply Chain," Regional Studies, Taylor & Francis Journals, vol. 35(6), pages 535-548.
    2. Robert Huggins, 1998. "Local Business Co-operation and Training and Enterprise Councils: The Development of Inter-firm Networks," Regional Studies, Taylor & Francis Journals, vol. 32(9), pages 813-826.
    3. Ray Hudson, 1997. "Regional Futures: Industrial Restructuring, New High Volume Production Concepts and Spatial Development Strategies in the New Europe," Regional Studies, Taylor & Francis Journals, vol. 31(5), pages 467-478.
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