Exploiting the Modularity of Value Chains: Inter-firm Dynamics of the Taiwanese Notebook PC Industry

Kawakami Momoko

No 146, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: This paper explores the inter-firm dynamics that govern the rise of capabilities of latecomer firms operating in global value chains. By extending and modifying the model proposed by Gereffi, Humphrey and Sturgeon [2005], I present a framework in which the rise of supplier capabilities is determined by interactions among the strategies of the firms. Based on a case study of the Taiwanese notebook PC industry, the paper will explore how the interactions among outsourcing strategies by lead firms from the developed countries, the learning strategies of Taiwanese suppliers, and the product strategy of powerful component vendors have driven the explosive growth of the industry after the 1990s. By so doing, the paper attempts to highlight the active roles firms play in determining the speed and direction of the rise in supplier capabilities.

Keywords: Global value chains; Notebook PC industry; ODM(original design manufacturing); Taiwan; Computer; Electronic industries; 国際価値連鎖; ノート型PC産業; 台湾; コンピュータ; 電子計算機; 電子工業 (search for similar items in EconPapers)
JEL-codes: F14 L23 L63 (search for similar items in EconPapers)
Date: 2008-04-01
New Economics Papers: this item is included in nep-int and nep-tid
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 146. 2008-04-01

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