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Small and medium enterprises as pioneers in the expansion of global production networks: A case study of the Japanese electronics industry in Guangdong, China

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  • Yung-Hsing Guo

Abstract

Japan has been the largest source country of foreign direct investment (FDI) in China, excluding overseas Chinese territories and tax havens. However, Japan's large-scale but relatively closed production networks have received little discussion in previous research. Two peaks in Japanese investment can be distinguished: the first led by the electronics industry in the mid-1990s and the second by the automotive industry after 2003. Cross-border production network building in the electronics industry is quite different from the scenarios of conventional global production networks (GPN) theory, where leading firms dominate the building of global production networks. In this paper, I demonstrate that in the development of the electronics industry, the institutional advantage small and medium enterprises have of knowing how to operate production bases in Southern China has enabled them to guide leading firms in building cross-border production networks.

Suggested Citation

  • Yung-Hsing Guo, 2012. "Small and medium enterprises as pioneers in the expansion of global production networks: A case study of the Japanese electronics industry in Guangdong, China," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 24(3-4), pages 143-159, April.
    • Handle: RePEc:taf:entreg:v:24:y:2012:i:3-4:p:143-159
    DOI: 10.1080/08985626.2012.670910
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    References listed on IDEAS

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    1. Xiaolan Fu & V. N. Balasubramanyam, 2005. "Exports, Foreign Direct Investment and Employment: The Case of China," The World Economy, Wiley Blackwell, vol. 28(4), pages 607-625, April.
    2. Liu, Xiaming & Wang, Chengang & Wei, Yingqi, 2001. "Causal links between foreign direct investment and trade in China," China Economic Review, Elsevier, vol. 12(2-3), pages 190-202.
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