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Emerging Strategies and Forms of Governance in High-Wage Component Manufacturing Regions

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  • Gary Herrigel

Abstract

This paper provides a broad survey of the current terrain of components production in the high-wage regions of North America and Europe. Its central message is that it is unwise to believe in the unitary characterizations of the development of relations between original equipment manufacturers (OEMs) and suppliers in contemporary manufacturing. The character of the current environment aligns strategies among all parties such that heterogeneity in relations between customers and suppliers is systematically reproduced. Four broad types of strategy are shown to be both currently possible and pursued in the current market. But there is a considerable amount of hedging as well as hybridity observable among component producer strategies. In a similar way, the range of governance mechanisms currently being developed and deployed among producers in the sector is quite broad. The same problem is being addressed by a multiple of alternative institutional arrangements. Mechanisms can be either public or private, or both, and formal or informal. They can also be corporate, associational, consortial, and market-based.

Suggested Citation

  • Gary Herrigel, 2004. "Emerging Strategies and Forms of Governance in High-Wage Component Manufacturing Regions," Industry and Innovation, Taylor & Francis Journals, vol. 11(1-2), pages 45-79.
    • Handle: RePEc:taf:indinn:v:11:y:2004:i:1-2:p:45-79
    DOI: 10.1080/1366271042000200448
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    Cited by:

    1. Vincent FRIGANT, 2011. "Egyptian pyramid or Aztec pyramid: How should we describe the industrial architecture of automotive supply chains in Europe?," Cahiers du GREThA (2007-2019) 2011-27, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    2. Frigant, Vincent & Zumpe, Martin, 2014. "The persistent heterogeneity of trade patterns: A comparison of four European Automotive Global Production Networks," MPRA Paper 60199, University Library of Munich, Germany.
    3. Güldem Özataǧan, 2011. "Shifts in Value Chain Governance and Upgrading in the European Periphery of Automotive Production: Evidence from Bursa, Turkey," Environment and Planning A, , vol. 43(4), pages 885-903, April.
    4. Ergen, Timur & Kohl, Sebastian & Braun, Benjamin, 2021. "Firm foundations: The statistical footprint of multinational corporations as a problem for political economy," MPIfG Discussion Paper 21/5, Max Planck Institute for the Study of Societies.
    5. Vincent FRIGANT, 2007. "Ten years of modularity: empirical evidences on the restructuring of the auto part industry (In French)," Cahiers du GREThA (2007-2019) 2007-15, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    6. Rafael Pardo & Ruth Rama, 2013. "Is the Pro-Network Bias Justified?," SAGE Open, , vol. 3(3), pages 21582440134, July.
    7. Eduardo Hernandez-Rodriguez & Ron Boschma & Andrea Morrison & Xianjia Ye, 2023. "Functional upgrading and downgrading in global value chains: Evidence from EU regions using a relatedness/complexity framework," Papers in Evolutionary Economic Geography (PEEG) 2316, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2023.
    8. Vincent FRIGANT & Stéphanie PERES & Stéphane VIROL, 2012. "How do SMEs to rise at the top of the supply chain? An econometric exploration of the French auto industry (In French)," Cahiers du GREThA (2007-2019) 2012-16, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    9. Vincent FRIGANT & Martin ZUMPE, 2014. "Are automotive Global Production Networks becoming more global? Comparison of regional and global integration processes based on auto parts trade data," Cahiers du GREThA (2007-2019) 2014-09, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    10. Alison Blay-Palmer, 2005. "Growing Innovation Policy: The Case of Organic Agriculture in Ontario, Canada," Environment and Planning C, , vol. 23(4), pages 557-581, August.
    11. Meenu Tewari, 2005. "The Role of Price and Cost Competitiveness in Apparel Exports, Post-MFA: A Review," Indian Council for Research on International Economic Relations, New Delhi Working Papers 173, Indian Council for Research on International Economic Relations, New Delhi, India.
    12. Gerald A. McDermott & Héctor O. Rocha, 2010. "Clusters And Upgrading: A Purposeful Approach," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 1(1).
    13. Vincent FRIGANT, 2011. "Three uncertainties looming over the European auto industry," Cahiers du GREThA (2007-2019) 2011-34, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    14. Scuotto, Veronica & Garcia-Perez, Alexeis & Nespoli, Chiara & Messeni Petruzzelli, Antonio, 2020. "A repositioning organizational knowledge dynamics by functional upgrading and downgrading strategy in global value chain," Journal of International Management, Elsevier, vol. 26(4).
    15. Alexandre Berthe & Pascal Grouiez, 2020. "Small Farm Upgrading in GVC: a Strategic Perspective," Working Papers halshs-02953123, HAL.
    16. Andrew Schrank & Josh Whitford, 2009. "Industrial Policy in the United States: A Neo-Polanyian Interpretation," Politics & Society, , vol. 37(4), pages 521-553, December.

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