Strategies for Global Competition: Transnational Chemical Firms and Singapore's Chemical Cluster

Jason H J Wang and Henry Wai-Chung Yeung

Environment and Planning A, 2000, vol. 32, issue 5, 847-869

Abstract: The strong performance of Singapore's chemical industry in recent years has increased public awareness about the importance of this obscure sector in the Singapore economy. In the public rhetoric, much of this robust growth is attributed to the industrial policies implemented by the Singapore government. However, the ultimate decision to built a multibillion dollar chemical-processing plant in resource-scarce Singapore still depends very much on the global strategies of transnational chemical firms (CTNCs). The authors propose a firm-level perspective to aid in understanding the development of Singapore's chemical industry. They argue that the global strategies of CTNCs have a vital role to play in promoting growth within the Singapore chemical industry cluster. Conceived under the 1991 Strategic Economic Plan, the idea of clustering represents a radically different approach to the development of the petroleum-refining, petrochemicals, specialty chemicals, and pharmaceutical industries where previously each was deemed a separate activity. Based on field research into over forty subsidiaries and local suppliers of CTNCs in Singapore, the authors highlight the importance of two major contextual influences on the global strategies of CTNCs: rising global competition and the huge market potential offered by developing countries. Given these circumstances, CTNCs have relied on their established capabilities to formulate spatial strategies for increasing global competitiveness. In Singapore, subsidiaries of CTNCs have tapped into cluster-based advantages to enhance their capabilities, thereby contributing to the further growth of Singapore's chemical industry cluster.

Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envira:v:32:y:2000:i:5:p:847-869

DOI: 10.1068/a32147

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