Value creation and value capture in the automotive industry: Empirical evidence from Czechia

Petr Pavlínek and Jan Ženka

Environment and Planning A, 2016, vol. 48, issue 5, 937-959

Abstract: This article investigates how distinct tiers of firms contribute to value creation and value capture in the automotive industry. We employ firm-level indicators to evaluate the value creation and capture of distinct supplier tiers in the Czech automotive industry, while considering differences between foreign-owned and domestic firms. Our analysis suggests that the economic effects of the automotive industry largely depend on its capital intensity and that mostly foreign-owned higher tier firms generate and capture greater value than lower tier firms, which include the vast majority of domestic suppliers.

Keywords: Automotive industry; value creation; value capture; Czechia (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envira:v:48:y:2016:i:5:p:937-959

DOI: 10.1177/0308518X15619934

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