Boundaries of firms and catching up by latecomers in global production networks: the case of a Mexican auto-parts manufacturer

Taeko Hoshino

No 492, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: For manufacturing firms in developing countries, there are high barriers to entry and to catching up with competitors in their global production networks (GPNs). This paper examines the case of a Mexican auto-parts manufacturer that succeeded in catching up in the automotive GPN. The author proposes that the door to GPNs is open thanks to frequent changes in the boundaries of firms, and also stresses the importance of the necessary conditions that generate opportunities, including institutional settings that facilitate market entry and catching up, and capability building by firms hopeful of entry.

Keywords: Mexico; Automobile industry; Business enterprises; Industrial policy; Exports; Boundary of firms; Global production network (GPN); Auto-parts; ISI; Export industrialization; Nemak; Alfa; Ford (search for similar items in EconPapers)
JEL-codes: L22 L52 L62 N66 N86 O33 (search for similar items in EconPapers)
Date: 2015-02-01
New Economics Papers: this item is included in nep-cse, nep-int and nep-net
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 492. 2015-02-01

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