Globalization, Convergence, and the Transformation of International Production Networks in Electronics in East Asia

Business and Politics, De Gruyter, Vol.1, No.1,1999

33 Pages Posted: 16 Mar 2016

See all articles by Dieter Ernst

Dieter Ernst

East-West Center; Centre for International Governance Innovation (CIGI)

John Ravenhill

Australian National University

Date Written: March 16, 1999

Abstract

Globalization is often said to lead to convergence among firm strategies. Significant differences existed in the organization of the production networks of Japanese and US firms in electronics in East Asia at the beginning of the 1990s. The sources of these differences lie in part in the relative newness of the export-orientation of Japanese companies, in weaknesses in Japanese corporate governance, in the geographical proximity of East Asian plants to Japan, and in the product mix of Japanese firms. An opening of Japanese production networks occurred in the first half of the 1990s in part in response to pressures associated with various forces of globalization, including the diffusion of capabilities, changes in technology, and the internationalization of the Japanese economy. This opening of Japanese networks caused them to converge towards their American counterparts. Partial convergence, however, coexisted with persistent diversity relative to the behavior of US networks. While nationality continued to matter, other factors affecting firms have to be incorporated into the analysis to explain the persistent diversity of firm behaviors.

Suggested Citation

Ernst, Dieter and Ravenhill, John, Globalization, Convergence, and the Transformation of International Production Networks in Electronics in East Asia (March 16, 1999). Business and Politics, De Gruyter, Vol.1, No.1,1999. Available at SSRN: https://ssrn.com/abstract=2748384

Dieter Ernst (Contact Author)

East-West Center ( email )

1601 East-West Road
Honolulu, HI 96848-1601
United States

Centre for International Governance Innovation (CIGI) ( email )

57 Erb Street West
Waterloo, Ontario N2L 6C2
Canada

John Ravenhill

Australian National University ( email )

Canberra, Australian Capital Territory 2601
Australia

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