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How to cope with the global value chain: lessons from Italian automotive suppliers

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  • Cristina Castelli
  • Massimo Florio
  • Anna Giunta

Abstract

In the past 20 years the automotive industry has been subject to fundamental changes, resulting in deverticalisation and dispersion of production across different regions. The structural changes strongly impacted on supplier firms localised in Turin (Italy), a hub and spoke district, featuring a wide supply chain polarised around Fiat Group, the lead company. Our case study examines the strategies implemented in the period 2000–2005 by a group of 13 selected suppliers, located in Turin area, to successfully participate to the global value chain. Our findings show that companies are pursuing a 'high road development strategy', based on client portfolio diversification, product and process innovation, cumulative internationalisation. More in general, future prospects for the local firms to survive international competitive pressures seem crucially depending on continuous learning and innovative firms' activities.

Suggested Citation

  • Cristina Castelli & Massimo Florio & Anna Giunta, 2011. "How to cope with the global value chain: lessons from Italian automotive suppliers," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 11(3), pages 236-253.
    • Handle: RePEc:ids:ijatma:v:11:y:2011:i:3:p:236-253
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    Citations

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    Cited by:

    1. Emanuele Bacchiocchi & Massimo Florio & Anna Giunta, 2014. "Internationalization and industrial districts: evidence from the Italian automotive supply chain," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(1), pages 1-21, January.
    2. Vincent FRIGANT & Martin ZUMPE, 2014. "The persistent heterogeneity of trade patterns: A comparison of four European Automotive Global Production Networks," Cahiers du GREThA (2007-2019) 2014-24, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    3. Davide Bubbico, 2014. "Economic Actors and Local Institutions in Activities in Support of the Automotive Sector in Southern Italy," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, January.
    4. Emanuele Bacchiocchi & Massimo Florio & Anna Giunta, 2012. "Internationalisation and the agglomeration effect in the global value chain: the case of Italian automotive suppliers," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 5(3), pages 267-290.
    5. Frigant, Vincent & Zumpe, Martin, 2014. "Are automotive global production networks becoming more global? Comparison of regional and global integration processes based on auto parts trade data," MPRA Paper 55727, University Library of Munich, Germany.
    6. Knez, Klemen, 2022. "Domestic Supplier Spillovers of Global Value Chains in Central and Eastern European Countries," MPRA Paper 112391, University Library of Munich, Germany.
    7. Amirah El-Haddad & Chahir Zaki, 2023. "Vulnerability and resilience: crisis transmission channels for GVCs in COVID times," Economics Bulletin, AccessEcon, vol. 43(4), pages 1581-1592.
    8. Vincent Frigant & Stéphane Miollan, 2014. "The Geographical Restructuring of the European Automobile Industry in the 2000s," Working Papers hal-02150630, HAL.
    9. Vincent Frigant & Stéphane Miollan, 2014. "La restructuration de la géographie de l'industrie automobile en Europe dans les années 2000," Working Papers hal-00935325, HAL.
    10. Vincent FRIGANT & Stéphanie PERES & Stéphane VIROL, 2012. "How do SMEs to rise at the top of the supply chain? An econometric exploration of the French auto industry (In French)," Cahiers du GREThA (2007-2019) 2012-16, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    11. Calabrese, Giuseppe Giulio & Manello, Alessandro, 2018. "Firm internationalization and performance: Evidence for designing policies," Journal of Policy Modeling, Elsevier, vol. 40(6), pages 1221-1242.
    12. Vincent FRIGANT, 2013. "Une comparaison de l’internationalisation des chaînes d’approvisionnement automobiles allemande et française," Cahiers du GREThA (2007-2019) 2013-09, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    13. Frigant, Vincent, 2014. "Une comparaison de la fragmentation internationale des chaînes d’approvisionnement automobiles allemande et française," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 15.
    14. Alessandro Manello & Giuseppe G. Calabrese & Piercarlo Frigero, 2016. "Technical efficiency and productivity growth along the automotive value chain: evidence from Italy," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(2), pages 245-259.

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