International Production Networks in Asia. Rivalry or Riches?, Edited by Michael Borrus, Dieter Ernst, and Stephan Haggard
International Production Networks in Asia. Rivalry or Riches, edited by Michael Borrus, Dieter Ernst, and Stephan Haggard, Routledge, London and New York, 2000
Posted: 27 Apr 2016
Date Written: September 24, 2000
This book provides one of the first detailed case studies of international production networks and the integration of electronics industries across the Asia-Pacific region. International production networks are defined as the inter and intra-firm relationships through which the firm organizes the entire range of its business activities: from research and development (R&D), product definition and design, to supply of inputs, manufacturing (or production of a service), distribution, and support services. We thus include the entire network of crossborder relationships between a lead firm and its own affiliates and subsidiaries, but also its subcontractors, suppliers, service providers, or other firms participating in cooperative arrangements, such as standards-setting or R&D consortia. Choosing the international production network as the unit of analysis captures the cross-border operations of the lead firm itself, but also the proliferation of non-equity, non-arm’s-length, inter-firm relationships in which significant value is added outside the lead-firm. The value of studying IPNs is that they closely mirror the rapidly changing division of labor in the Asia-Pacific. In the electronics sector that is the subject of this book, IPNs are not simply constructed to access cheap factor inputs (resources or labor) or to gain access to expanding markets, two of the principle explanations for foreign direct investment. Although those factors may have motivated initial investment, IPNs are increasingly designed to both foster and exploit the region’s highly heterogeneous technological capabilities. Indeed, a central theme of our work is that IPNs are assembled to access locational advantages at each network node associated with the increasingly specialized technology, skills and know-how that are resident there. Case studies cover the Asian production networks of electronics firms from the US, Japan, Taiwan, Korea; the network integration of Singapore and Malaysia.
Keywords: global production networks; electronics industry; Asia; regional integration
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