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Value chains, networks and clusters: reframing the global automotive industry
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In this article, we apply global value chain (GVC) analysis to recent trends in the global automotive industry, with special attention paid to the case of North America. We use the three main elements of the GVC framework—firm-level chain governance, power and institutions—to highlight some of the defining characteristics of this important industry. First, national political institutions create pressure for local content, which drives production close to end markets, where it tends to be organized nationally or regionally. Second, in terms of GVC governance, rising product complexity combined with low codifiability and a paucity of industry-level standards has driven buyer–supplier linkages toward the relational form, a governance mode that is more compatible with Japanese than American supplier relations. The outsourcing boom of the 1990s exacerbated this situation. As work shifted to the supply base, lead firms and suppliers were forced to develop relational linkages to support the exchange of complex uncodified information and tacit knowledge. Finally, the small number of hugely powerful lead firms that drive the automotive industry helps to explain why it has been so difficult to develop and set the industry-level standards that could underpin a more loosely articulated spatial architecture. This case study underlines the need for an open, scalable approach to the study of global industries.
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“To some extent, control decisions are impacted by host countries' regulatory environments, particularly when national political institutions create pressure for local content on MNEs that are trying to gain access to large downstream markets in Global value chains emerging economies (Lund-Thomsen & Coe, 2015;Morris & Staritz, 2014;Sturgeon, Van Biesebroeck, & Gereffi, 2008).”
From Global value chains: A review of the multi-disciplinary literature (2020) · cites this paper as Sturgeon, Van Biesebroeck, & Gereffi, 2008
In the citing paper
“Desire to access large and fast-growing consumer markets drives production activities close to end markets, for example, when host country governments in emerging markets pressure MNEs for local operations (Sturgeon et al., 2008).”
From Global value chains: A review of the multi-disciplinary literature (2020) · cites this paper as Sturgeon et al., 2008
In the citing paper
“Sturgeon et al. (2008) followed up with this line of research by examining major American and Japanese automotive lead firms and over 150 suppliers in North America.They found that upgrading of local suppliers was more likely if the GVC network structure moved towards a relational form of power dynamics.”
From Global value chains: A review of the multi-disciplinary literature (2020) · cites this paper as Sturgeon et al., 2008
In the citing paper
“In a case study of major American and Japanese automotive lead firms and their suppliers, Sturgeon et al. (2008) find that relational governance is necessitated by rising product complexity, low process codifiability and a paucity of industry-level standards.”
From Global value chains: A review of the multi-disciplinary literature (2020) · cites this paper as Sturgeon et al. (2008)
In the citing paper
“Sturgeon et al. (2008) discuss the impact of home country cultural characteristics on American and Japanese lead firms' abilities to successfully engage in relational governance.”
From Global value chains: A review of the multi-disciplinary literature (2020) · cites this paper as Sturgeon et al. (2008)
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“…corporations (TNCs); and (c) the role of institutions in influencing and structuring the operation of industries in different regions and at multiple geographic scales, with a particular emphasis on the role of the state and regional development strategies (Gereffi, 2018; Sturgeon et al., 2008).”
BackgroundConceptual Aspects of Global Value Chains
Antràs, P. (2020) · World Bank, Washington, DC eBooks · doi:10.1596/1813-9450-9114 · Cited by 86
Pavlínek, P. (2022) · Empirica · doi:10.1007/s10663-022-09554-9 · Cited by 84
Trade Crisis And Recovery : Restructuring Of Global Value Chains
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The role of regions in global value chains: an analysis for the European Union
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“In particular, we focus on the degree of performance of active local units (it includes monetary, business demography and employment aspects) expressed as an index, ranging from 0 (the lowest performance) to 100 (the highest performance) (see Sturgeon et al., 2008).”
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“Interestingly, this opposition between network and cluster is also discussed in other fields, such as in the analysis of global value chains (Sturgeon et al., 2008).”
Global Value Chain Resilience: Understanding the Impact of Managerial Governance Adaptations
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“In addition, related regulations will be formulated (Oltra and Saint Jean, 2009; Sturgeon et al., 2008; Xi et al., 2009).”
BackgroundBreznitz, D. (2021) · doi:10.1093/oso/9780197508114.001.0001 · Cited by 83
Local Entrepreneurship within Global Value Chains: A Case Study in the Mexican Automotive Industry
Contreras, Ó. F., Carrillo, J., & Alonso, J. (2012) · World Development · doi:10.1016/j.worlddev.2011.11.012 · Cited by 74
“The implications for national and regional economies are ambiguous, since such strategies lead to a re-centralization of technologically intensive activities in the developed countries and MNCs, reducing opportunities for knowledge acquisition and upgrading for the small local suppliers (Quadros & Queiroz, 2001; Sturg…”
BackgroundSurana, K., Doblinger, C., Anadón, L. D., & Hultman, N. (2020) · Nature Energy · doi:10.1038/s41560-020-00685-6 · Cited by 78
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“sea trade began to change, influenced by post war reconstruction and the establishment of the United Nations (Stopford, 2009; Rodrigue and Notteboom, 2015).”
BackgroundInfluentialGlobal models of networked organization, the positional power of nations and economic development
Mahutga, M. C. (2014) · Review of International Political Economy · doi:10.1080/09692290.2013.779932 · Cited by 71
Mapping and defining entrepreneurial ecosystems: a systematic literature review
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Nahm, J. (2017) · Business and Politics · doi:10.1017/bap.2016.5 · Cited by 66
“4 Berger and Locke (2001); Breznitz (2007); Gereffi et al. (2005); Steinfeld (2004); Sturgeon et al. (2008).”
Capitalist crisis in the “age of global value chains”
Bair, J., Mahutga, M. C., Werner, M., & Campling, L. (2021) · Environment and Planning A Economy and Space · doi:10.1177/0308518x211006718 · Cited by 26
“…that develop textile manufacturing as well as garment assembly or auto parts manufacturing as well as vehicle assembly may have relatively low “foreign VA in exports” even though firms in these countries play a key role in GVCs for apparel and autos (Bair and Gereffi, 2001; Sturgeon et al., 2008).”
Background
Metadata
- Authors
- Sturgeon, T., Van Biesebroeck, J., & Gereffi, G.
- Affiliations
- Massachusetts Institute of Technology (US)
- Duke University (US)
- ORCID
- Gereffi, G.
- Venue
- Journal of Economic Geography
- Publisher
- Oxford University Press (OUP)
- Published
- 2008-02-29
- Volume
- 8
- Issue
- 3
- Pages
- 297-321
- ISSN
- 1468-2702 (ISSN-L)
- 1468-2710
- OpenAlex
- W2152630760
- Cited by
- 885
- References
- 50
- Citations by year
- 2026: 34 · 2025: 49 · 2024: 33 · 2023: 49 · 2022: 48 · 2021: 65 · 2020: 55 · 2019: 61 · 2018: 46 · 2017: 61 · 2016: 46 · 2015: 62 · 2014: 54 · 2013: 59 · 2012: 48
- FWCI
- 116.35
- Type
- journal article
- Language
- en
- Open access
- green
- lirias.kuleuven.be
- Licence
- other-oa
- Locations
- Journal of Economic Geography (publishedVersion)
- Lirias (KU Leuven) (submittedVersion, other-oa)
- SSRN Electronic Journal (submittedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- DukeSpace (Duke University) (submittedVersion)
- DukeSpace (Duke University) (submittedVersion, cc-by-nc-nd)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Global trade, sustainability, and social impact
- Social Sciences › Business, Management and Accounting › Management Information Systems › Outsourcing and Supply Chain Management
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Global trade and economics
- Keywords
- global value chains, automotive industry, North America, local content, relational governance, tacit knowledge, outsourcing, lead firms, spatial architecture, industrial clusters, product complexity
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