IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v34y2000i9p797-812.html
   My bibliography  Save this article

Globalization and the Death of the Local Firm? The Automobile Components Sector in South Africa

Author

Listed:
  • Justin Barnes
  • Raphael Kaplinsky

Abstract

BARNES J. and KAPLINSKY R. (2000) Globalization and the death of the local firm? The automobile components sector in South Africa, Reg. Studies 34 , 797-812. As in the case of many developing countries, South African industry is facing a new competitive environment as trade barriers fall. This involves both the need to enter external markets and to cope with new entrants in the domestic market. In the case of the South African automobile assembly industry, responding to this new global environment has increasingly meant that domestic subsidiaries are being integrated into the global strategic operations of their parent companies. This is increasingly leading them to the foreign sourcing of components, in part because of perverse and unintended consequences of the Motor Industry Development Plan. Where local production of components is involved, there is decreasing space for locally-owned component suppliers and almost no space for component suppliers using local technology. South African component suppliers are thus increasingly being relegated to highly competitive niches in mature technologies in external after-markets, making them vulnerable to exchange rates. BARNES J. and KAPLINSKY R. (2000) La mondialisation et la mort de l'entreprise locale?: les equipementiers en Afrique du Sud, Reg. Studies 34 , 797-812. Comme c'est le cas dans beaucoup des pays developpes, l'industrie en Afrique du Sud affronte un nouveau climat competitif au fur et a mesure du demantelement des barrieres tarifaires. Cela implique le besoin de prendre pied sur les marches exterieurs et de faire face aux nouveaux investisseurs etrangers qui arrivent sur le marche interieur. De plus en plus, repondre a ce nouveau climat international veut dire pour les equipementiers en Afrique du Sud l'integration croissante des filiales dans les activites strategiques internationales de leur maison-mere. Petit a petit, cela a entraine la recherche de fournisseurs etrangers pour se procurer des pieces detachees, en partie a cause des consequences illogiques et non voulus du Plan en faveur du developpement de l'indutrie automobile. La ou la production locale de pieces detachees est en jeu, il y a moins de possibilites pour les equipementiers autochtones et pas de possibilites presque pour les equipementiers qui se servent de la technologie locale. Par la suite, les equipementiers en Afrique du Sud se voient releguer de plus en plus aux creneaux tres competitives des technologies mures dans des marches secondaires externes, ce qui les rend vulnerables aux taux de change. BARNES J. und KAPLINSKY R. (2000) Globalisierung und das Ende der einheimischen Firma? Der Automobilkomponentensektor in Sudafrika, Reg. Studies 34 , 797-812. Wie viele Entwicklungslander, sieht sich auch Sudafrika bei der Aufhebungvon Handelsschranken einerneuen Wettbewerbslage gegenuber. Es ergibt sich sowohl die Notwendigkeit, in auswartige Markte einzusteigen, als es auch mit den neuen Einsteigern im einheimischen Market aufzunehmen. Im Falle der sudafrikanischen Automobilmontageindustrie hat die Reaktion auf diese neue globale Lage dazu gefuhrt, dass einheimische Tochtergesellschaften in die globalen strategischen Betriebsplane ihrer Muttergesellschaften einbezogen werden. Dies fuhrt sie zunehmend zu auslandischen Bezugsquellen fur einzelne Maschinenteile, zum Teil wegen abwegiger und unbeabsichtigter Folgen des Entwicklungsplans der Automobilindustrie. Wo es um einheimische Herstellung einzelner Maschinenteile geht, ist immer weniger Raum fur in einheimischem Besitz befindliche Maschinenteillieferungen und fast gar kein Raum fur auf ortsansassige Technologie gestutzte. Sudafrikanische Maschinenteillieferanten werden somit zunehmend in stark wettbewerbsbestimmte Situationen in voll entwickelten Technologien in auslandischen Kundendienstmarkten abgeschoben, wobei sie den jeweiligen Wechselkursen wehrlos ausgesetzt sind.

Suggested Citation

  • Justin Barnes & Raphael Kaplinsky, 2000. "Globalization and the Death of the Local Firm? The Automobile Components Sector in South Africa," Regional Studies, Taylor & Francis Journals, vol. 34(9), pages 797-812.
    • Handle: RePEc:taf:regstd:v:34:y:2000:i:9:p:797-812
    DOI: 10.1080/00343400020002949
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00343400020002949
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00343400020002949?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David Sadler, 1999. "Internationalization and Specialization in the European Automotive Components Sector: Implications for the Hollowing-out Thesis," Regional Studies, Taylor & Francis Journals, vol. 33(2), pages 109-119.
    2. Kaplinsky, Raphael & Morris, Mike, 1999. "Trade Policy Reform and the Competitive Response in Kwazulu Natal Province, South Africa," World Development, Elsevier, vol. 27(4), pages 717-737, April.
    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. Andrea Morrison & Carlo Pietrobelli & Roberta Rabellotti, 2008. "Global Value Chains and Technological Capabilities: A Framework to Study Learning and Innovation in Developing Countries," Oxford Development Studies, Taylor & Francis Journals, vol. 36(1), pages 39-58.
    2. 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.
    3. Mañé Estrada, Aurèlia & Soldevila Lafon, Maria Victòria & Cámara Arilla, Carmen de la & Puig Gómez, Albert, 2012. "New stakeholders, spaces and instruments of analysis in the context of energy relationships: Case studies from Kazakhstan and Turkmenistan," Working Papers 2072/203154, Universitat Rovira i Virgili, Department of Economics.
    4. Peter Draper & Andreas Freytag & Sören Scholvin & Luong Thanh Tran, 2016. "Is a ‘Factory Southern Africa’ Feasible?," World Bank Publications - Reports 23788, The World Bank Group.
    5. Moritz Breul & Javier Revilla Diez, 2021. "“One thing leads to another”, but where? – Gateway cities and the geography of production linkages," Growth and Change, Wiley Blackwell, vol. 52(1), pages 29-47, March.
    6. Simona, Gentile-Lüdecke & Axèle, Giroud, 2012. "Knowledge Transfer from TNCs and Upgrading of Domestic Firms: The Polish Automotive Sector," World Development, Elsevier, vol. 40(4), pages 796-807.
    7. Lila Truett & Dale Truett, 2006. "Production and costs in the South African motor vehicle industry," Applied Economics, Taylor & Francis Journals, vol. 38(20), pages 2381-2392.
    8. Akçomak, Ibrahim Semih & Bürken, Serkan, 2019. "The middle-technology trap: The case of the automotive industry in Turkey," MERIT Working Papers 2019-006, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. Lorentzen, Jochen, 2005. "The absorptive capacities of South African automotive component suppliers," World Development, Elsevier, vol. 33(7), pages 1153-1182, July.
    10. Peter Draper & Andreas Freytag & Sören Scholvin & Luong Thanh Tran, 2016. "Is a 'Factory Southern Africa' Feasible? Harnessing Flying Geese to the South African Gateway," CESifo Working Paper Series 5867, CESifo.
    11. Jason F. Bell & Lorenza Monaco, 2021. "Power and supply chain development in the South African and Thai automotive industries: What lessons can be learnt?," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(3), pages 457-471, April.
    12. Ross D. Weiner & Trevor Roxo & Mitchell Kellman, 2008. "South Africa's Manufactured International Trade in the Post-Sanctions Epoch: Patterns and Potentials," The American Economist, Sage Publications, vol. 52(1), pages 86-95, March.
    13. Morris, Mike & Kaplinsky, Raphael & Kaplan, David, 2012. "“One thing leads to another”—Commodities, linkages and industrial development," Resources Policy, Elsevier, vol. 37(4), pages 408-416.
    14. Hoshino, Taeko, 2015. "Boundaries of firms and catching up by latecomers in global production networks : the case of a Mexican auto-parts manufacturer," IDE Discussion Papers 492, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    15. Lila J. Truett & Dale B. Truett, 2009. "Firm Size And Efficiency In The South African Motor Vehicle Industry," Australian Economic Papers, Wiley Blackwell, vol. 48(4), pages 333-341, December.
    16. Justin Barnes & Anthony Black & Kriengkrai Techakanont, 2017. "Industrial Policy, Multinational Strategy and Domestic Capability: A Comparative Analysis of the Development of South Africa’s and Thailand’s Automotive Industries," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(1), pages 37-53, January.
    17. René m. Bakker & Leon A.g. Oerlemans & Tinus Pretorius, 2008. "Domestic And International Innovation Partnerships: Do They Matter For Innovation Outcomes Of South African Firms?," South African Journal of Economics, Economic Society of South Africa, vol. 76(3), pages 518-536, September.
    18. Matthias Brönner & Skander Salah & Markus Lienkamp, 2020. "Production Challenges in Least Developed Countries," Challenges, MDPI, vol. 11(1), pages 1-20, January.
    19. Petr Pavlínek & Pavla Žížalová, 2016. "Linkages and spillovers in global production networks: firm-level analysis of the Czech automotive industry," Journal of Economic Geography, Oxford University Press, vol. 16(2), pages 331-363.
    20. Jessie P. H. Poon & Suksawat Sajarattanochote, 2009. "Asian Transnational Enterprises and Technology Transfer in Thailand," European Planning Studies, Taylor & Francis Journals, vol. 18(5), pages 691-707, February.
    21. Javier Bilbao-Ubillos, 2010. "Spatial Implications of New Dynamics in Production Organisation: The Case of the Automotive Industry in the Basque Country," Urban Studies, Urban Studies Journal Limited, vol. 47(5), pages 1117-1146, May.

    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. repec:ilo:ilowps:369852 is not listed on IDEAS
    2. Gregor Murray & Patrice Jalette & Jacques Bélanger & Christian Lévesque, 2014. "The ‘hollowing out’ of the national subsidiary in multinational companies: is it happening, does it matter, what are the strategic consequences?," Transfer: European Review of Labour and Research, , vol. 20(2), pages 217-236, May.
    3. Vincent Frigant & Stéphane Miollan, 2014. "The Geographical Restructuring of the European Automobile Industry in the 2000s," Working Papers hal-02150630, HAL.
    4. 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).
    5. Marie-Claude Bélis-Bergouignan & Vincent Frigant & Damien Talbot, 2003. "L'inscription spatiale des modèles industriels," Post-Print hal-02385401, HAL.
    6. Petr Pavlínek, 2002. "Transformation of the Central and East European Passenger Car Industry: Selective Peripheral Integration through Foreign Direct Investment," Environment and Planning A, , vol. 34(9), pages 1685-1709, September.
    7. Anthony Black, 2001. "Globalization and restructuring in the South African automotive industry," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(6), pages 779-796.
    8. Bolesław Domański & Krzysztof Gwosdz, 2009. "Toward a More Embedded Production System? Automotive Supply Networks and Localized Capabilities in Poland," Growth and Change, Wiley Blackwell, vol. 40(3), pages 452-482, September.
    9. Humphrey, John,, 2004. "Upgrading in global value chains," ILO Working Papers 993698523402676, International Labour Organization.
    10. Samuel Akpan BASSEY & Mfonobong David UDOUDOM & Timothy Adie OKPE, 2019. "The Impact of Globalization and Trade on Africa," RAIS Journal for Social Sciences, Research Association for Interdisciplinary Studies, vol. 3(1), pages 1-6, May.
    11. Gibbon, Peter, 2001. "Upgrading Primary Production: A Global Commodity Chain Approach," World Development, Elsevier, vol. 29(2), pages 345-363, February.
    12. Petr Pavlínek & Pavla Žížalová, 2016. "Linkages and spillovers in global production networks: firm-level analysis of the Czech automotive industry," Journal of Economic Geography, Oxford University Press, vol. 16(2), pages 331-363.
    13. 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.
    14. Kemal Türkcan, 2011. "Vertical Intra-Industry Trade and Product Fragmentation in the Auto-Parts Industry," Journal of Industry, Competition and Trade, Springer, vol. 11(2), pages 149-186, June.
    15. Gill Bentley & David Bailey & Stewart MacNeill, 2013. "The changing geography of the European auto industry," Chapters, in: Frank Giarratani & Geoffrey J.D. Hewings & Philip McCann (ed.), Handbook of Industry Studies and Economic Geography, chapter 3, pages 67-96, Edward Elgar Publishing.
    16. Pierre Claver Bitama & Philippe Lebailly & Patrice Ndimanya & Philippe Burny, 2019. "Global Value Chain Governance and Relation between Local Actors in the Burundian Tea Sector," International Review of Management and Marketing, Econjournals, vol. 9(6), pages 105-111.
    17. Vincent FRIGANT, 2011. "Three uncertainties looming over the European auto industry," Cahiers du GREThA (2007-2019) 2011-34, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    18. Thomas H. Klier & Daniel P. McMillen, 2013. "Agglomeration in the European Automobile Supplier Industry," Working Paper Series WP-2013-15, Federal Reserve Bank of Chicago.
    19. Jingyun Zhang & Guangping Liu & Xueyuan Li & Han Jiang, 2020. "The transmission mechanism of the housing price fluctuations on the global value chain position of manufacturing-evidence from China," PLOS ONE, Public Library of Science, vol. 15(2), pages 1-14, February.
    20. Güldem Özataǧan, 2011. "Shifts in Value Chain Governance and Upgrading in the European Periphery of Automotive Production: Evidence from Bursa, Turkey," Environment and Planning A, , vol. 43(4), pages 885-903, April.
    21. Ponte, Stefano, 2002. "The 'Latte Revolution'? Regulation, Markets and Consumption in the Global Coffee Chain," World Development, Elsevier, vol. 30(7), pages 1099-1122, July.

    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:taf:regstd:v:34:y:2000:i:9:p:797-812. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    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.