IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v39y2007i6p1346-1363.html
   My bibliography  Save this article

Spatial Clustering and Organizational Dynamics of Transborder Production Networks: A Case Study of Taiwanese Information-Technology Companies in the Greater Suzhou Area, China

Author

Listed:
  • You-Ren Yang

    (Department of Geography, National Taiwan University, Taipei, Taiwan 10617)

  • Chu-Joe Hsia

    (Graduate Institute of Building and Planning, National Taiwan University, Taipei, Taiwan 10617)

Abstract

Transborder investment by Taiwanese information-technology (IT) companies has driven the development of a new industrial space in the Greater Suzhou Area (GSA) of China over the last ten years. In this paper we aim to explore some characteristics of this expansion from the perspective of the organizational dynamics of global production networks. We found that foreign brand-name companies have played a key role in propelling this wave of investment in the GSA by Taiwanese IT companies. At the same time, their business strategies have influenced the mechanisms governing these Taiwanese companies' supply chains and have forged the dynamics of spatial agglomeration. We argue that the transborder extension of the production networks is interwoven with the exercise of power between enterprise organizations. Our findings suggest that interdependence among firms in close geographical proximity is inseparable from the asymmetrical power relations embodied in global commodity chains; a point emphasized by economic geographers as the main reason for transborder production shifts that result in the formation of new industrial spaces in developing countries. However, if these production networks can respond collectively to such a strict environment through instituting suitable organizational governance, then their competitive advantage will be enhanced, while also benefiting the host region's development through localization.

Suggested Citation

  • You-Ren Yang & Chu-Joe Hsia, 2007. "Spatial Clustering and Organizational Dynamics of Transborder Production Networks: A Case Study of Taiwanese Information-Technology Companies in the Greater Suzhou Area, China," Environment and Planning A, , vol. 39(6), pages 1346-1363, June.
    • Handle: RePEc:sae:envira:v:39:y:2007:i:6:p:1346-1363
    DOI: 10.1068/a38156
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/a38156
    Download Restriction: no
    File URL: https://libkey.io/10.1068/a38156?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ann Markusen, 1996. "Sticky Places in Slippery Space: A Typology of Industrial Districts," Economic Geography, Taylor & Francis Journals, vol. 72(3), pages 293-313, July.
    2. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhihua Xu & Anthony Yeh, 2013. "Origin Effects, Spatial Dynamics and Redistribution of FDI In Guangdong, China," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 104(4), pages 439-455, September.
    2. Zhou, Qingna & Gao, Ping & Chimhowu, Admos, 2019. "ICTs in the transformation of rural enterprises in China: A multi-layer perspective," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 12-23.
    3. Chen, Liang-Chih, 2015. "Building extra-regional networks for regional innovation systems: Taiwan's machine tool industry in China," Technological Forecasting and Social Change, Elsevier, vol. 100(C), pages 107-117.
    4. Canfei He & Qi Guo & David Rigby, 2017. "What sustains larger firms? Evidence from Chinese manufacturing industries," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(2), pages 275-300, March.
    5. Daniel You‐Ren Yang & Neil M. Coe, 2009. "The Governance of Global Production Networks and Regional Development: A Case Study of Taiwanese PC Production Networks," Growth and Change, Wiley Blackwell, vol. 40(1), pages 30-53, March.

    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. Roberta Rabellotti & Alessia Amighini, 2003. "The effect of globalisation on industrial districts in Italy: evidence from the footwear sector," ERSA conference papers ersa03p500, European Regional Science Association.
    2. 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.
    3. Xiaofei Chen & Enru Wang & Changhong Miao & Lili Ji & Shaoqi Pan, 2020. "Industrial Clusters as Drivers of Sustainable Regional Economic Development? An Analysis of an Automotive Cluster from the Perspective of Firms’ Role," Sustainability, MDPI, vol. 12(7), pages 1-22, April.
    4. Matias Ramirez & Ian Clarke & Laurens Klerkx, 2018. "Analysing intermediary organisations and their influence on upgrading in emerging agricultural clusters," Environment and Planning A, , vol. 50(6), pages 1314-1335, September.
    5. Mark Lorenzen & Ram Mudambi & Andreas Schotter, 0. "International connectedness and local disconnectedness: MNE strategy, city-regions and disruption," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-24.
    6. Fiorenza Belussi & Alessia Sammarra, 2006. "Evolution and Relocation in Fashion-led Italian Districts: Evidence from two Case-Studies," "Marco Fanno" Working Papers 0023, Dipartimento di Scienze Economiche "Marco Fanno".
    7. Nicholas A. Phelps & Miguel Atienza & Martin Arias, 2015. "Encore for the Enclave: The Changing Nature of the Industry Enclave with Illustrations from the Mining Industry in Chile," Economic Geography, Taylor & Francis Journals, vol. 91(2), pages 119-146, April.
    8. John Pickles & Adrian Smith & Milan Bucěk & Poli Roukova & Robert Begg, 2006. "Upgrading, Changing Competitive Pressures, and Diverse Practices in the East and Central European Apparel Industry," Environment and Planning A, , vol. 38(12), pages 2305-2324, December.
    9. Giuliani, Elisa & Pietrobelli, Carlo & Rabellotti, Roberta, 2005. "Upgrading in Global Value Chains: Lessons from Latin American Clusters," World Development, Elsevier, vol. 33(4), pages 549-573, April.
    10. Ram Mudambi & Lee Li & Xufei Ma & Shige Makino & Gongming Qian & Ron Boschma, 2018. "Zoom in, zoom out: Geographic scale and multinational activity," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(8), pages 929-941, October.
    11. Mark Lorenzen & Ram Mudambi & Andreas Schotter, 2020. "International connectedness and local disconnectedness: MNE strategy, city-regions and disruption," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(8), pages 1199-1222, October.
    12. Linqing Liu & Shiye Mei, 2016. "Visualizing the GVC research: a co-occurrence network based bibliometric analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 109(2), pages 953-977, November.
    13. Giulio Buciuni & Gary Pisano, 2018. "Knowledge integrators and the survival of manufacturing clusters," Journal of Economic Geography, Oxford University Press, vol. 18(5), pages 1069-1089.
    14. Valeria Costantini & Francesco Crespi & Giovanni Marin & Elena Paglialunga, 2016. "Eco-innovation, sustainable supply chains and environmental performance in European industries," LEM Papers Series 2016/19, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    15. Epede, Mesumbe Bianca & Wang, Daoping, 2022. "Global value chain linkages: An integrative review of the opportunities and challenges for SMEs in developing countries," International Business Review, Elsevier, vol. 31(5).
    16. Lorenzo Ciapetti, 2011. "Technological Change, Knowledge Integration and Adaptive Processes: The Mechatronic Evolution of the Reggio Emilia District," Chapters, in: Paul L. Robertson & David Jacobson (ed.), Knowledge Transfer and Technology Diffusion, chapter 5, Edward Elgar Publishing.
    17. Jan Fagerberg & Bengt-Åke Lundvall & Martin Srholec, 2018. "Global Value Chains, National Innovation Systems and Economic Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 533-556, July.
    18. Wei ZHAO & Rigas ARVANITIS, 2008. "L’INeGAL DeVELOPPEMENT INDUSTRIEL DE LA CHINE : CAPACITeS D’INNOVATION ET COEXISTENCE DE DIFFeRENTS MODES D’APPRENTISSAGE TECHNOLOGIQUE," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 28, pages 61-85.
    19. Marta Gancarczyk, 2010. "Model schyłku i odrodzenia klastrów," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 1-21.
    20. Pedro Valadas Monteiro, 2016. "The role of knowledge-intensive service activities on inducing innovation in co-opetition strategies: lessons from the maritime cluster of the Algarve region," International Journal of Management and Enterprise Development, Inderscience Enterprises Ltd, vol. 15(1), pages 78-95.

    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:sae:envira:v:39:y:2007:i:6:p:1346-1363. 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: SAGE Publications (email available below). General contact details of provider: .

    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.