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

Abstract

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.

Suggested Citation

Rasiah, Rajah, Flexible Production Systems and Local Machine Tool Subcontracting: Electronics Component Transnationals in Malaysia (September 1, 1994). Rajah Rasiah (1994) "Flexible Production Systems and Local Machine Tool Subcontracting: Electronics Component Transnationals in Malaysia", Cambridge Journal of Economics,18(3): 279-298. , Available at SSRN: https://ssrn.com/abstract=1669895

Rajah Rasiah (Contact Author)

University of Malaya ( email )

University of Malaya
Faculty of Economics and Administration
Kuala Lumpur, Wilayah Persekutuan 50603
Malaysia
60379673606 (Phone)
60379673719 (Fax)

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