City and Regional Planning / Şehir ve Bölge Planlama
Permanent URI for this collectionhttps://hdl.handle.net/11147/4274
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Article Citation - WoS: 20Citation - Scopus: 28Shifts in Value Chain Governance and Upgrading in the European Periphery of Automotive Production: Evidence From Bursa,turkey(SAGE Publications Inc., 2011) Özatağan, GüldemThis paper examines shifts in value chain governance and upgrading in the automotive component production node of Bursa in Turkey. Component suppliers in Bursa have gained design and product-development competences, one result of which is that European and global firms have turned to the creation of modular value chains for the sourcing of components from these suppliers. This paper considers the implications of the insertion of Turkish suppliers into modular value chains on suppliers' upgrading, and reveals that, despite the diffusion of design and product-development competences to suppliers in Bursa, cutting-edge innovation activities such as marketing and branding continue to remain the domain of the lead firms. It is argued that although Turkish suppliers seem to be successful in upgrading to take on design and product-development tasks, this has been more due to the willingness of global lead firms to relinquish these functions than to the success of Turkish suppliers in encroaching upon these once core competences of their customers. It is concluded that power asymmetries in global automotive value chains continue to exist, and that lead firms continue to have a major influence on the type of upgrading strategies that are open to their suppliers.Article Citation - WoS: 35Citation - Scopus: 39Dynamics of Value Chain Governance: Increasing Supplier Competence and Changing Power Relations in the Periphery of Automotive Production—evidence From Bursa, Turkey(Taylor and Francis Ltd., 2011) Özatağan, GüldemAdopting a global value chain (GVC) approach, this paper focuses on the ways in which global automotive transnational corporations coordinate their value chains with suppliers in the periphery of automotive production. In particular, it directs attention to particular forms of chain relations established by lead firms with suppliers in Turkey and the ways in which these chains are coordinated. Findings indicate that as component suppliers in the periphery of automotive production, such as those in Bursa, have gained the competencies not only to manufacture to the cost, quality and flexibility specifications required by their customers but also of design and product development, lead firms in the automotive industry have turned to modular value chains, where competent suppliers provide a range of services with less dependence on their customers, as a way of sourcing from these suppliers. I use this evidence to argue that GVC governance is dynamic and suppliers in the periphery have some room for breaking power asymmetries associated with specific modes of governance in GVCs.
