The Dynamics of Local Learning in Global Value Chains: Experiences from East Asia

250 Pages·2011·1.686 MB·English

by  Momoko Kawakami, Timothy J. Sturgeon (eds.)

The Dynamics of Local Learning in Global Value Chains
OthertitlesfromIDE-JETRO:
HirokoUchimura(editor)
MAKINGHEALTHSERVICESMOREACCESSIBLEINDEVELOPINGCOUNTRIES
HiroshiSatoandMayumiMurayama(editors)
GLOBALISATION,EMPLOYMENTANDMOBILITY
TheSouthAsianExperience
TakashiShiraishi,TatsufumiYamagataandShahidYusuf(editors)
POVERTY,REDUCTIONANDBEYOND
DevelopmentStrategiesforLow-IncomeCountries
MarikoWatanabe(editor)
RECOVERINGFINANCIALSYSTEMS
ChinaandAsianTransitionEconomies
DaisukeHiratsuka(editor)
EASTASIA’SDEFACTOECONOMICINTEGRATION
HisayukiMitsuo(editor)
NEWDEVELOPMENTSOFTHEEXCHANGERATEREGIMESINDEVELOPING
COUNTRIES
TadayoshiTeraoandKenjiOtsuka(editors)
DEVELOPMENTOFENVIRONMENTALPOLICYINJAPANANDASIANCOUNTRIES
MasahisaFujita(editor)
ECONOMICINTEGRATIONINASIAANDINDIA
MasahisaFujita(editor)
REGIONALINTEGRATIONINEASTASIA
FromtheViewpointofSpatialEconomics
AkifumiKuchikiandMasatsuguTsuji(editors)
INDUSTRIALCLUSTERSINASIA
AnalysesofTheirCompetitionandCooperation
MayumiMurayama(editor)
GENDERANDDEVELOPMENT
TheJapaneseExperienceinComparativePerspective
NobuhiroOkamotoandTakeoIhara(editors)
SPATIALSTRUCTUREANDREGIONALDEVELOPMENTINCHINA
AnInterregionalInput-OutputApproach
AkifumiKuchikiandMasatsuguTsuji(editors)
THEFLOWCHARTAPPROACHTOINDUSTRIALCLUSTERPOLICY
AkifumiKuchikiandMasatsuguTsuji(editors)
FROMAGGLOMERATIONTOINNOVATION
UpgradingIndustrialClustersinEmergingEconomies
KoichiUsami(editor)
NON-STANDARDEMPLOYMENTUNDERGLOBALIZATION
FlexibleWorkandSocialSecurityintheNewlyIndustrializingCountries
The Dynamics of Local
Learning in Global Value
Chains
Experiences from East Asia
Editedby
Momoko Kawakami
and
Timothy J. Sturgeon
©InstituteofDevelopingEconomies(IDE),Jetro2011
Softcover reprint of the hardcover 1st edition 2011 978-0-230-23849-7
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Thedynamicsoflocallearninginglobalvaluechains:experiencesfrom
EastAsia/editedbyMomokoKawakamiandTimothyJ.Sturgeon.
p. cm.
AjointresearchprojectbasedatInstituteofDevelopingEconomies,
JapanExternalTradeOrganization(IDE-JETRO).
1. Manufacturingindustries—Verticalintegration—EastAsia.
2. Diffusionofinnovations—EastAsia. 3. Businessnetworks—
EastAsia. 4. Businesslogistics—EastAsia. 5. International
businessenterprises—EastAsia. I. Kawakami,Momoko.
II. Sturgeon,TimothyJ. III. AjiaKeizaiKenkyujo(Japan)
HD9736.E18D962010
338.4095—dc22 2010012001
10 9 8 7 6 5 4 3 2 1
20 19 18 17 16 15 14 13 12 11
Contents
ListofTables vii
ListofFigures ix
Preface xi
Acknowledgments xiv
ListofContributors xvi
ValueChainDynamicsandCapabilityFormationby
LatecomerFirmsinEastAsia 1
MomokoKawakami
1 Inter-firmDynamicsinNotebookPCValueChainsand
theRiseofTaiwaneseOriginalDesignManufacturing
Firms 16
MomokoKawakami
2 ValueChainCreationandReorganization:TheGrowth
PathofChina’sMobilePhoneHandsetIndustry 43
KenImaiandJingMingShiu
3 ValueChainDynamicsandLocalSuppliers’Capability
Building:AnAnalysisoftheVietnameseMotorcycle
Industry 68
MaiFujita
4 LocalFirms’CapabilityDevelopmentinCaptiveValue
Chains:EvidencefromtheIndonesianMotorcycle
Industry 100
YuriSato
5 ToBeorNottoBeaSuppliertoTNCs?AnEntrepreneurial
ApproachtoLinkageFormationintheMalaysian
ElectronicsIndustry 136
HiroshiOikawa
v
vi Contents
6 Inter-CountryValueDistributionintheEastAsian
ElectronicsandAutomobileIndustries:AnEmpirical
GlobalValueChainApproach 167
HiroshiOikawa
7 LearningandEarninginGlobalValueChains:Lessonsin
SupplierCompetenceBuildinginEastAsia 207
TimothyJ.SturgeonandGregLinden
ConcludingRemarks 227
MomokoKawakami
Index 229
List of Tables
I.1 Keydeterminantsofglobalvaluechaingovernance:The
Gereffi,Humphrey,andSturgeon(2005)framework 5
1.1 ShareofOEM/ODMcontractinginthetotalproduction
ofnotebookPCsbyTaiwanesefirms(%) 22
2.1 China’smobilephonehandsetindustry—summary
figures(millionunits,%) 49
3.1 CapabilityMatrixforanalyzingmotorcyclecomponents
suppliers 72
3.2 Profileofrespondentsuppliers 86
3.3 Classificationoflearningeventsbyfunctionsof
capabilitiesacquired 91
4.1 AprototypeoftheCapabilityMatrix 104
4.2 CapabilityMatrixappliedtothemodernassembly
industry 105
4.3 Japanese-brandfirst-tiersuppliersbyownershipinthe
Indonesianmotorcycleindustry(2004–2005) 111
4.4 Shiftinsharesofcomponentprocurementvaluesfrom
importingtolocalsourcingbyJapanesemotorcycle
manufacturersinIndonesia(%) 112
4.5 Measuresforreducingcosts 120
4A.1 The25targetfirmsinthisstudy:basicinformationand
CapabilityMatrix(2005) 127
5.1 OutsourcingstructureofCompanyX(bycomponent
andcountry) 149
5.2 NumberofsuppliersofCompanyX(bycomponentand
country) 150
5.3 Companyprofiles 155
5.4 Entrepreneurialorientationscorebycompany 157
6.1 PerformancematrixofEastAsianindustrialization 179
6.2 Sectorclassificationandintegration:Asianinternational
input–outputtable1990,1995,and2000 187
6.3 IndexofInternationalValueDistribution 193
vii
viii ListofTables
6.4 WorldmarketshareofnineEastAsianeconomiesand
theUSA(electronicsandelectricalexports)in
percentages(%) 203
6.5 WorldmarketshareofnineEastAsianeconomiesand
theUSA(automobileandautocomponentexports)in
percentages(%) 204
7.1 Top5cellularhandsetvendorsworldwide,2005and
2008(millionsofunits) 214
List of Figures
I.1 Researchframework 6
1.1 QuantityofTaiwan’sproductionandexportsof
notebookPCs 21
1.2 WorldwideNotebookPCshipmentsbyTaiwanesefirms
andtheirshareoftheworldtotal 21
1.3 ChangeinthenumberofnotebookPCmanufacturersin
Taiwan 22
1.4 Inter-firmrelationshipsinthelate1990s 24
1.5 ProcessofchipdevelopmentbyIntel 25
1.6 Inter-firmflowofknowledgeinthelate1990s 27
1.7 SalesofmajorTaiwanesenotebookPCmanufacturers 29
1.8 Inter-firmrelationshipsafterthe2000s 31
1.9 OrganizationofQuantaComputerasof2006 32
1.10 Inter-firmflowofknowledgeafterthe2000s 33
1.11 Ratioofgrossmargintonetsales:comparisonsofIntel,
Dell,andQuanta 35
1.12 ROAofmajorTaiwanesenotebookPCmanufacturers 36
2.1 ConceptualModelofValueChainoftheMobilePhone
HandsetIndustry 46
2.2 Theestimatedsharesoflocalbrandsandforeignbrands 50
2.3 Patternsofvaluechains(1)—late1990stocirca2003 54
2.4 MarketsharesofbrandmanufacturersinOctober2008 56
2.5 Patternsofvaluechains(2)—circa2003to2004 58
2.6 Patternsofvaluechains(3)—2005tothepresent 62
3.1 GrowthofVietnam’smotorcyclemarket 76
3.2 Salesofmotorcyclesbymanufacturers 77
3.3 HVN’sLocalSourcing 81
3.4 Productionofmotorcyclesbysizeofproduction 82
3.5 Chainparticipationofrespondentsuppliers 87
3.6 Levelsofcapabilitiesreachedbyrespondentfirmsin
2008 89
4.1 ProductionofmotorcyclesinIndonesia 108
4.2 Laborproductivityandprofitabilityofmotorcycle
componentproducers 108
4.3 CompositionofIndonesianmotorcyclemarketbybrand 109
ix