Flexible Production Systems and Local Machine Tool Subcontracting: Electronics Component Transnationals in Malaysia
Rajah Rasiah (1994) "Flexible Production Systems and Local Machine Tool Subcontracting: Electronics Component Transnationals in Malaysia", Cambridge Journal of Economics,18(3): 279-298.
Posted: 25 Jun 2013
Date Written: September 1, 1994
This paper examines the influence of flexible production systems on the development of local sourcing. Using information gathered on production relationships between firms, it shows that the introduction of flexible production systems in electronics components transnationals in Malaysia stimulated the growth of local machine-tool firms. A combination of market forces and cooperation strengthened subcontracting links between electronics components transnationals and local machine-tool firms such that the latter experienced considerable technological broadening and deepening, thereby transforming them from simple parts to high-precision tooling and automation systems manufacturers.
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