IDEAS home Printed from https://ideas.repec.org/p/ewc/wpaper/wp33.html
   My bibliography  Save this paper

The Internet's Effects on Global Production Networks: Challenges and Opportunities for Managing in Developing Asia

Author

Listed:
  • Dieter Ernst

    (Economics Study Area, East-West Center)

Abstract

Placing global production networks (GPN) on the Internet poses a fundamental challenge, but also creates new opportunities for managing in Developing Asia. Network flagships can now select best-performing suppliers on a global scale, increasing the pressure on Asian suppliers. But the transition form EDI to the Internet may also provide new opportunities for Asian suppliers, by reducing barriers to network entry, and by enhancing knowledge diffusion. A conceptual framework is introduced to assess how the Internet reshapes business organization and GPN. That framework is applied to one of the role models of managing in Asia, Taiwan's Acer Group. The paper highlights a vicious circle that must be broken to reap the benefits of the Internet: Asian firms must reduce a huge efficiency gap between manufacturing and the management of supporting digital information systems (DIS). The challenge is to embrace the Internet as flexible infrastructures that support not only information exchange, but also knowledge sharing, creation and utilization. The Internet facilities this task: it provides new opportunities for the outsourcing of mission-critical support services.

Suggested Citation

  • Dieter Ernst, 2001. "The Internet's Effects on Global Production Networks: Challenges and Opportunities for Managing in Developing Asia," Economics Study Area Working Papers 33, East-West Center, Economics Study Area.
    • Handle: RePEc:ewc:wpaper:wp33
    as

    Download full text from publisher

    File URL: http://www.eastwestcenter.org/fileadmin/stored/pdfs/ECONwp033.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dieter Ernst & Paolo Guerrieri, 1998. "International production networks and changing trade patterns in East Asia: The case of the electronics industry," Oxford Development Studies, Taylor & Francis Journals, vol. 26(2), pages 191-212.
    2. Ernst, Dieter & Ravenhill, John, 1999. "Globalization, Convergence, and the Transformation of International Production Networks in Electronics in East Asia," Business and Politics, Cambridge University Press, vol. 1(1), pages 35-62, April.
    3. George B. Richardson, 1996. "Competition, Innovation and Increasing Returns," DRUID Working Papers 96-10, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    4. Dieter Ernst, 2000. "Inter-Organizational Knowledge Outsourcing: What Permits Small Taiwanese Firms to Compete in the Computer Industry?," Economics Study Area Working Papers 01, East-West Center, Economics Study Area.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Chia-Ling (Eunice) & Zhang, Yingying, 2014. "Learning process and capability formation in cross-border buyer–supplier relationships: A qualitative case study of Taiwanese technological firms," International Business Review, Elsevier, vol. 23(4), pages 718-730.
    2. Dieter Ernst, 2000. "Placing the Networks on the Web: Challenges and Opportunities for Managing in Developing Asia," Economics Study Area Working Papers 05, East-West Center, Economics Study Area.
    3. Jue Wang & Yingqi Wei & Xiaming Liu & Chengang Wang & Hua Lin, 2014. "Simultaneous Impact of the Presence of Foreign MNEs on Indigenous Firms’ Exports and Domestic Sales," Management International Review, Springer, vol. 54(2), pages 195-223, April.
    4. Liu, C.-L.E., 2012. "An investigation of relationship learning in cross-border buyer–supplier relationships: The role of trust," International Business Review, Elsevier, vol. 21(3), pages 311-327.
    5. René Belderbos & Jianglei Zou, 2006. "Foreign Investment, Divestment and Relocation by Japanese Electronics Firms in East Asia," Asian Economic Journal, East Asian Economic Association, vol. 20(1), pages 1-27, March.
    6. Vijay Kumar Kaul & Tuhina Roy Chowdhury, 2018. "India Stimulating Growth in Bay of Bengal Region: Integrating Key Interests and Strengthening Innovation Capacity," South Asian Survey, , vol. 25(1-2), pages 102-128, March.
    7. Carl Bonham & Byron Gangnes & Ari Van Assche, 2007. "Fragmentation and East Asia's information technology trade," Applied Economics, Taylor & Francis Journals, vol. 39(2), pages 215-228.
    8. Yi-Ju Lo & Tung Hung, 2015. "Structure offshoring and returns on offshoring," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 443-479, June.
    9. Hadad Shahrazad, 2017. "Strategies for developing knowledge economy in Romania," Management & Marketing, Sciendo, vol. 12(3), pages 416-430, September.
    10. Kang, Min-Ping & Mahoney, Joseph T. & Tan, Danchi, 2007. "Why Firms Make Unilateral Investments Specific to Other Firms: The Case of OEM Suppliers," Working Papers 07-0110, University of Illinois at Urbana-Champaign, College of Business.
    11. Chang, Kuo-Hsiung & Gotcher, Donald F., 2020. "How and when does co-production facilitate eco-innovation in international buyer-supplier relationships? The role of environmental innovation ambidexterity and institutional pressures," International Business Review, Elsevier, vol. 29(5).
    12. Paolo Guerrieri & Filippo Vergara Caffarelli, 2012. "Trade Openness and International Fragmentation of Production in the European Union: The New Divide?," Review of International Economics, Wiley Blackwell, vol. 20(3), pages 535-551, August.
    13. Behl, Abhishek & Jayawardena, Nirma & Ishizaka, Alessio & Gupta, Manish & Shankar, Amit, 2022. "Gamification and gigification: A multidimensional theoretical approach," Journal of Business Research, Elsevier, vol. 139(C), pages 1378-1393.
    14. Dieter Ernst & Jan Fagerberg & Jarle Hildrum, 2002. "Do Global Production Networks and Digital Information Systems Make Knowledge Spatially Fluid?," Economics Study Area Working Papers 43, East-West Center, Economics Study Area.
    15. Chun Yang & Haifeng Liao, 2010. "Backward Linkages Of Cross‐Border Production Networks Of Taiwanese Pc Investment In The Pearl River Delta, China," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 101(2), pages 199-217, April.
    16. Dieter Ernst & Linsu Kim, 2001. "Global Productions Networks, Knowledge Diffusion, and Local Capability Formation. A Conceptual Framework," Economics Study Area Working Papers 19, East-West Center, Economics Study Area.
    17. Johnson, Julius H. & Arya, Bindu & Mirchandani, Dinesh A., 2013. "Global integration strategies of small and medium multinationals: Evidence from Taiwan," Journal of World Business, Elsevier, vol. 48(1), pages 47-57.
    18. Simon Collinson & Alan M. Rugman, 2007. "The Regional Focus of Asian Multinational Enterprises," Working Papers 2007-08, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    19. Contreras, Oscar F. & Carrillo, Jorge & Alonso, Jorge, 2012. "Local Entrepreneurship within Global Value Chains: A Case Study in the Mexican Automotive Industry," World Development, Elsevier, vol. 40(5), pages 1013-1023.
    20. Suder, Gabriele & Liesch, Peter W. & Inomata, Satoshi & Mihailova, Irina & Meng, Bo, 2015. "The evolving geography of production hubs and regional value chains across East Asia: Trade in value-added," Journal of World Business, Elsevier, vol. 50(3), pages 404-416.

    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:ewc:wpaper:wp33. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Brenda Higashimoto (email available below). General contact details of provider: https://edirc.repec.org/data/ewchius.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.