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Upgrading of TNC subsidiaries: the case of the Polish automotive industry

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  • Johannes Winter

Abstract

The automotive industry is Europe's leading industrial sector and transmitter of innovations and cyclical trends. Due to the structural downturn in the last decades, car manufacturers have begun to focus on their core competencies. Initially, only assembly and low-tech production were decentralised to emerging markets. Today, internationalisation also affects knowledge-intensive capacities. Faced with this volatile economic environment, we should thus view the intra-corporate allocation of competencies not as a top-down hierarchy with very separate responsibilities and roles, but as a heterarchy with scope for subsidiary upgrading. By means of foreign direct investments, intra-corporate knowledge transfer and self-acquisition of corporate competencies, foreign subsidiaries can build up technological and organisational competencies. Drawing upon a theoretical gap in existing economic geography and international business literature, a conceptual framework for the subdivision of corporate competencies is developed in this study and applied in the empirical context of the Polish automotive industry.

Suggested Citation

  • Johannes Winter, 2010. "Upgrading of TNC subsidiaries: the case of the Polish automotive industry," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 10(2/3), pages 145-160.
    • Handle: RePEc:ids:ijatma:v:10:y:2010:i:2/3:p:145-160
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    Citations

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    Cited by:

    1. Petr Pavlínek, 2012. "The Internationalization of Corporate R&D and the Automotive Industry R&D of East-Central Europe," Economic Geography, Clark University, vol. 88(3), pages 279-310, July.
    2. Marta Gancarczyk & Jacek Gancarczyk & Joanna Bohatkiewicz, 2017. "SME Roles in Modular Value Chains: Perspectives for Growth and Innovativeness," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 5(3), pages 95-117.
    3. Marta Gancarczyk & Joanna Bohatkiewicz, 2018. "Research Streams in Cluster Upgrading. A Literature Review," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 4(4), pages 17-42.
    4. Martin Borowiecki & Bernhard Dachs & Doris Hanzl-Weiss & Steffen Kinkel & Johannes Pöschl & Magdolna Sass & Thomas Christian Schmall & Robert Stehrer & Andrea Szalavetz, 2012. "Global Value Chains and the EU Industry," wiiw Research Reports 383, The Vienna Institute for International Economic Studies, wiiw.
    5. Andrea Szalavetz, 2016. "Global Crisis and Upgrading of MNCs' Manufacturing Subsidiaries: A Case Study of Hungary," Central European Business Review, Prague University of Economics and Business, vol. 2016(1), pages 37-44.

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