Network composition, collaborative ties, and upgrading in emerging-market firms: Lessons from the Argentine autoparts sector
Gerald A McDermott and
Rafael A Corredoira
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Gerald A McDermott: Sonoco International Business Department, The Darla Moore School of Business, University of South Carolina, Columbia, USA
Rafael A Corredoira: Department of Management and Organization, Robert H. Smith School of Business, University of Maryland, College Park, USA
Journal of International Business Studies, 2010, vol. 41, issue 2, 308-329
What types of relational and institutional mechanisms shape knowledge flows and the upgrading capabilities of emerging-market firms in the face of economic liberalization? We analyze the Argentine autoparts sector to distinguish the relative impact of different types of network relationships on a firm's process and product upgrading. A few social ties to international assemblers appear to be most beneficial for local suppliers, although they may be insufficient to compensate fully for the negative effect of being located in a lower tier. Supplier–customer relationships that are part of regular, disciplined discussions for product and process improvements appear to be especially beneficial for upgrading.
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