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Value creation and value capture in the automotive industry: Empirical evidence from Czechia

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  • Petr Pavlínek
  • Jan Ženka

Abstract

This article investigates how distinct tiers of firms contribute to value creation and value capture in the automotive industry. We employ firm-level indicators to evaluate the value creation and capture of distinct supplier tiers in the Czech automotive industry, while considering differences between foreign-owned and domestic firms. Our analysis suggests that the economic effects of the automotive industry largely depend on its capital intensity and that mostly foreign-owned higher tier firms generate and capture greater value than lower tier firms, which include the vast majority of domestic suppliers.

Suggested Citation

  • Petr Pavlínek & Jan Ženka, 2016. "Value creation and value capture in the automotive industry: Empirical evidence from Czechia," Environment and Planning A, , vol. 48(5), pages 937-959, May.
    • Handle: RePEc:sae:envira:v:48:y:2016:i:5:p:937-959
    DOI: 10.1177/0308518X15619934
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