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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 & Martin ZUMPE, 2014. "The persistent heterogeneity of trade patterns: A comparison of four European Automotive Global Production Networks," Cahiers du GREThA 2014-24, Groupe de Recherche en Economie Théorique et Appliquée.
    2. Vincent FRIGANT (GREThA-GRES), 2007. "Ten years of modularity: empirical evidences on the restructuring of the auto part industry (In French)," Cahiers du GRES (2002-2009) 2007-20, Groupement de Recherches Economiques et Sociales.
    3. Frigant, Vincent & Zumpe, Martin, 2014. "Are automotive global production networks becoming more global? Comparison of regional and global integration processes based on auto parts trade data," MPRA Paper 55727, University Library of Munich, Germany.
    4. Vincent FRIGANT (GREThA, CNRS, UMR 5113) & Stéphanie PERES (Bordeaux Sciences Agro, INRA, ISVV, USC 1320 GAIA) & Stéphane VIROL (GREThA, CNRS, UMR 5113), 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 2012-16, Groupe de Recherche en Economie Théorique et Appliquée.
    5. 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).
    6. Vincent FRIGANT (GREThA, CNRS, UMR 5113), 2011. "Three uncertainties looming over the European auto industry," Cahiers du GREThA 2011-34, Groupe de Recherche en Economie Théorique et Appliquée.
    7. Vincent FRIGANT (GREThA-GRES), 2007. "Ten years of modularity: empirical evidences on the restructuring of the auto part industry (In French)," Cahiers du GRES (2002-2009) 2007-20, Groupement de Recherches Economiques et Sociales.

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