IDEAS home Printed from https://ideas.repec.org/a/abg/anprac/v23y2019i51359.html
   My bibliography  Save this article

Go Global or Stay Local? Understanding How Fiscal Incentives Reshape Supply Networks

Author

Listed:
  • Ricardo Silveira Martins
  • Janaina Siegler
  • Armando Souza-Junior
  • Barbara Flynn
  • Guilherme Silveira Martins

Abstract

This study investigates the way firms reconfigure their supply base and reshape their production network to capture value from Free Trade Zone incentives to capture value from incentives. Six production networks located in Manaus, Brazil are analyzed using the Global Production Network framework and factors related to plant type and supplier relationships. A multiple case study was conducted. Data was collected using in-depth semi-structured interviews administered in loco, and the selected the firms were leaders in three different industries: transportation, mechanical assembly and chemicals. The results indicate that, if effectively applied, incentives can impact production network configuration from an embeddedness perspective, causing a firm to change its strategic role. Based on the analysis, we propose five propositions that challenge the relationships among autonomy, value creation, plant types and levels of embeddedness. The propositions are particularly useful for suppliers and distributors, as well as public agencies, including infrastructure providers and policymakers.

Suggested Citation

  • Ricardo Silveira Martins & Janaina Siegler & Armando Souza-Junior & Barbara Flynn & Guilherme Silveira Martins, 2019. "Go Global or Stay Local? Understanding How Fiscal Incentives Reshape Supply Networks," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 23(5), pages 654-671.
    • Handle: RePEc:abg:anprac:v:23:y:2019:i:5:1359
    as

    Download full text from publisher

    File URL: https://rac.anpad.org.br/index.php/rac/article/view/1359/1406
    Download Restriction: no
    File URL: https://rac.anpad.org.br/index.php/rac/article/download/1359/1406
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Liao, Shu-Hsien & Kuo, Fang-I, 2014. "The study of relationships between the collaboration for supply chain, supply chain capabilities and firm performance: A case of the Taiwan׳s TFT-LCD industry," International Journal of Production Economics, Elsevier, vol. 156(C), pages 295-304.
    2. Rudberg, Martin & Olhager, Jan, 2003. "Manufacturing networks and supply chains: an operations strategy perspective," Omega, Elsevier, vol. 31(1), pages 29-39, February.
    3. Neil M. Coe & Peter Dicken & Martin Hess, 2008. "Global production networks: realizing the potential," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 271-295, May.
    4. Sergio G. Lazzarini & Danny P. Claro & Luiz F. Mesquita, 2008. "Buyer–Supplier and Supplier–Supplier Alliances: Do They Reinforce or Undermine One Another?," Journal of Management Studies, Wiley Blackwell, vol. 45(3), pages 561-584, May.
    5. Tingting Yan & Thomas Y. Choi & Yusoon Kim & Yang Yang, 2015. "A Theory of the Nexus Supplier: A Critical Supplier From A Network Perspective," Journal of Supply Chain Management, Institute for Supply Management, vol. 51(1), pages 52-66, January.
    6. Kim, Jaehoon & Kim, Sangsin, 2015. "2012년 국회법 개정의 효과 연구 [A Study on the Effect of the 2012 National Assembly Act Amendment]," KDI Research Monographs, Korea Development Institute (KDI), volume 127, number v:2015-03(k):y:2015:p:1-1.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amalesh Sharma & V. Kumar & Jun Yan & Sourav Bikash Borah & Anirban Adhikary, 2019. "Understanding the structural characteristics of a firm’s whole buyer–supplier network and its impact on international business performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(3), pages 365-392, April.
    2. Rachel Alexander, 2020. "Emerging Roles of Lead Buyer Governance for Sustainability Across Global Production Networks," Journal of Business Ethics, Springer, vol. 162(2), pages 269-290, March.
    3. Acar, Yavuz & Atadeniz, Sukran Nilvana, 2015. "Comparison of integrated and local planning approaches for the supply network of a globally-dispersed enterprise," International Journal of Production Economics, Elsevier, vol. 167(C), pages 204-219.
    4. Cheng, Yang & Farooq, Sami, 2018. "The role of plants in manufacturing networks: A revisit and extension," International Journal of Production Economics, Elsevier, vol. 206(C), pages 15-32.
    5. Alexander, Rachel, 2020. "Emerging roles of lead buyer governance for sustainability across global production networks," LSE Research Online Documents on Economics 100908, London School of Economics and Political Science, LSE Library.
    6. Simpson, N.C. & Tacheva, Zhasmina & Kao, Ta-Wei, 2023. "Semi-directedness: New network concepts for supply chain research," International Journal of Production Economics, Elsevier, vol. 256(C).
    7. Carlson, Laura A. & Bitsch, Vera, 2018. "Social sustainability in the ready-made-garment sector in Bangladesh: an institutional approach to supply chains," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(2), March.
    8. Bomi Nomlala, 2021. "Financial Socialisation of Accounting Students in South Africa," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 10(2), pages 01-15, April.
    9. Margareet Visser & Matthew Alford, 2024. "Governance and Power Across Intersecting Value Chains: The Case of South African Apples," Journal of Business Ethics, Springer, vol. 189(1), pages 69-86, January.
    10. Jonathan Knuckey & Myunghee Kim, 2020. "The Politics of White Racial Identity and Vote Choice in the 2018 Midterm Elections," Social Science Quarterly, Southwestern Social Science Association, vol. 101(4), pages 1584-1599, July.
    11. Min Kwan Baek & Young Saing Kim & Eun Young Kim & Ae Jin Kim & Won-Jun Choi, 2016. "Health-Related Quality of Life in Korean Adults with Hearing Impairment: The Korea National Health and Nutrition Examination Survey 2010 to 2012," PLOS ONE, Public Library of Science, vol. 11(10), pages 1-10, October.
    12. Hamilton-Hart, Natasha & Stringer, Christina, 2016. "Upgrading and exploitation in the fishing industry: Contributions of value chain analysis," Marine Policy, Elsevier, vol. 63(C), pages 166-171.
    13. Nicole A. Cunningham, 2015. "Photothermal Therapy as an Alternative Treatment for the Clinical Management of Cancer," International Journal of Sciences, Office ijSciences, vol. 4(11), pages 30-32, November.
    14. Niki Koutrou & Athanasios (Sakis) Pappous & Anna Johnson, 2016. "Post-Event Volunteering Legacy: Did the London 2012 Games Induce a Sustainable Volunteer Engagement?," Sustainability, MDPI, vol. 8(12), pages 1-12, November.
    15. Stephanie Barrientos & Margareet Visser, 2012. "South African horticulture: opportunities and challenges for economic and social upgrading in value chains," Global Development Institute Working Paper Series ctg-2012-12, GDI, The University of Manchester.
    16. Patricia Deflorin & Helmut Dietl & Markus Lang & Eric Lucas, 2011. "Determinants of the Optimal Network Configuration and the Implications for Coordination," Working Papers 0152, University of Zurich, Institute for Strategy and Business Economics (ISU).
    17. Jonathan F Cogliano & Roberto Veneziani & Naoki Yoshihara, 2024. "The dynamics of international exploitation," Environment and Planning A, , vol. 56(5), pages 1420-1446, August.
    18. Raghda Abulsaoud Ahmed Younis, 2021. "Cognitive Diversity and Creativity: The Moderating Effect of Collaborative Climate," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(1), pages 159-159, July.
    19. Walid EL-Ansari & Christiane Stock, 2016. "Gender Differences in Self-Rated Health among University Students in England, Wales and Northern Ireland: Do Confounding Variables Matter?," Global Journal of Health Science, Canadian Center of Science and Education, vol. 8(11), pages 168-168, November.
    20. Tony Edwards & Paul Marginson & Anthony Ferner, 2013. "Multinational Companies in Cross-National Context: Integration, Differentiation, and the Interactions between MNCS and Nation States," ILR Review, Cornell University, ILR School, vol. 66(3), pages 547-587, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:abg:anprac:v:23:y:2019:i:5:1359. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Information Technology of ANPAD (email available below). General contact details of provider: http://anpad.org.br .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.