Value chains, networks and clusters: Reframing the global automotive industry
Repository Usage Stats
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. © The Author (2008). Published by Oxford University Press. All rights reserved.
Published Version (Please cite this version)10.1093/jeg/lbn007
Publication InfoSturgeon, T; Van Biesebroeck, J; & Gereffi, G (2008). Value chains, networks and clusters: Reframing the global automotive industry. Journal of Economic Geography, 8(3). pp. 297-321. 10.1093/jeg/lbn007. Retrieved from https://hdl.handle.net/10161/11587.
This is constructed from limited available data and may be imprecise. To cite this article, please review & use the official citation provided by the journal.
More InfoShow full item record
Professor Emeritus of Sociology
Gary Gereffi is Emeritus Professor of Sociology and Director of the Global Value Chains Center at Duke University (https://gvcc.duke.edu/). He has published over a dozen books and numerous articles on globalization, industrial upgrading, and social and economic development, and he is one of the originators of the global value chains framework. His most recent books are: <a href="https://www.elgaronline.com/view/edcoll/