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The Development of Automotive Parts Suppliers in Korea and Malaysia: A Global Value Chain Perspective

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  • PETER WAD

Abstract

This contribution aims to investigate whether, how and why national automobile policies in Korea and Malaysia have generated industrial upgrading and increased competitiveness of the domestic automobile components industry to the point of world class suppliers. The study applies a global value chain perspective on the development of national automobile firms and industries in developing countries. The contribution argues that the rise of powerful multinational companies (MNCs) who were automobile suppliers of systems or modules based on advanced proprietary technology and branding has made it more important than ever that upper tier suppliers evolve and/or locate in global value chains to remain competitive. No such automobile suppliers have yet emerged out of the local Korean and Malaysian automobile component industry, but world class foreign automobile suppliers have established operations especially in Korea. Hence, both the Korean and Malaysian vehicle makers will depend upon and have to ally with leading foreign automobile suppliers to achieve or sustain competitiveness in local, regional and world markets.

Suggested Citation

  • Peter Wad, 2008. "The Development of Automotive Parts Suppliers in Korea and Malaysia: A Global Value Chain Perspective," Asia Pacific Business Review, Taylor & Francis Journals, vol. 14(1), pages 47-64.
    • Handle: RePEc:taf:apbizr:v:14:y:2008:i:1:p:47-64
    DOI: 10.1080/13602380701661002
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    1. Timothy J. Sturgeon, 2002. "Modular production networks: a new American model of industrial organization," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 451-496, June.
    2. Gibbon, Peter, 2001. "Upgrading Primary Production: A Global Commodity Chain Approach," World Development, Elsevier, vol. 29(2), pages 345-363, February.
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    Cited by:

    1. Jason F. Bell & Lorenza Monaco, 2021. "Power and supply chain development in the South African and Thai automotive industries: What lessons can be learnt?," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(3), pages 457-471, April.
    2. Liam Campling & James Harrison & Ben Richardson & Adrian Smith & Mirela Barbu, 2021. "South Korea's Automotive Labour Regime, Hyundai Motors’ Global Production Network and Trade‐Based Integration with the European Union," British Journal of Industrial Relations, London School of Economics, vol. 59(1), pages 139-166, March.
    3. Ülengin, Füsun & Önsel, Şule & Aktas, Emel & Kabak, Özgür & Özaydın, Özay, 2014. "A decision support methodology to enhance the competitiveness of the Turkish automotive industry," European Journal of Operational Research, Elsevier, vol. 234(3), pages 789-801.
    4. Hoshino, Taeko, 2015. "Boundaries of firms and catching up by latecomers in global production networks : the case of a Mexican auto-parts manufacturer," IDE Discussion Papers 492, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Machacek, Erika & Fold, Niels, 2014. "Alternative value chains for rare earths: The Anglo-deposit developers," Resources Policy, Elsevier, vol. 42(C), pages 53-64.
    6. Iliopoulos, Panagiotis (Takis), 2022. "A quantitative analysis of governance structures in the world economy," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 599(C).

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