IDEAS home Printed from https://ideas.repec.org/p/uto/dipeco/201109.html
   My bibliography  Save this paper

From Joint Ventures to National Champions or Global Players? Alliances and Technological Catching-up in Chinese and Indian Automotive Industries

Author

Abstract

The internationalisation of the automotive industry in China and India sheds light on the economic processes of emergence at large. This evolution in the car industry serves as an analyser of the relationships between industrial policies, industrial partnerships and paths of technological catching-up that are at the core of the phenomenon of emergence. The modes of endogenisation of technology have shifted from an all-over joint venture route towards the direct emergence of provincial players into the global scene and new forms of alliances. This evolution in the car industry serves as an analyser of the relationships between industrial policies, industrial partnerships and paths of technological catching-up that are at the core of the phenomenon of emergence. Chinese and Indian car companies are not only internationalising by selling abroad; they are internationalising by producing abroad and even, for some of them, globalising their production process through rethinking their whole supply chain, entering new value chains, or grasping global opportunities. This paper, based on interviews, examines different stylised business models for Chinese and Indian car companies, to ultimately question the theory of emerging market multinationals and of JVs. It does so by examining the following points: - the trajectories of Chinese and Indian carmakers, viz. their property status and relationship to the State (private vs. State owned; province of localisation) in a context of consolidating national champions; - modes of technological catching-up and innovation processes; - market mix strategies between a geographically fragmented (in China) or concentrated (in India) domestic market and a growing export performance combined with an early multinational production. The paper concludes on the different trajectories and on perspectives for joint ventures. We notably raise the hypothesis that joint ventures classically based on an exchange of technology for market access have exhausted their scope, and might now have to be based on an exchange of domestic market for international market, or are evolving towards different forms of governance.

Suggested Citation

  • Balcet Giovanni & Ruet Joël, 2011. "From Joint Ventures to National Champions or Global Players? Alliances and Technological Catching-up in Chinese and Indian Automotive Industries," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201109, University of Turin.
    • Handle: RePEc:uto:dipeco:201109
    as

    Download full text from publisher

    File URL: http://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2011dip/9_wp_balcet_ruet.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Louis T. Wells, 1983. "Third World Multinationals: The Rise of Foreign Investments from Developing Countries," MIT Press Books, The MIT Press, edition 1, volume 1, number 026273169x, December.
    2. Arvanitis, Rigas & Zhao, Wei & Qiu, Haixiong & Xu, Jian-niu, 2006. "Technological learning in six firms in Southern China: success and limits of an industrialisation model," MPRA Paper 18553, University Library of Munich, Germany, revised 2006.
    3. Moon, Hwy-Chang & Roehl, Thomas W., 2001. "Unconventional foreign direct investment and the imbalance theory," International Business Review, Elsevier, vol. 10(2), pages 197-215, April.
    4. Davide Castellani & Antonello Zanfei, 2006. "Multinational Firms, Innovation and Productivity," Books, Edward Elgar Publishing, number 3709.
    5. Thun,Eric, 2006. "Changing Lanes in China," Cambridge Books, Cambridge University Press, number 9780521843829, January.
    6. Jorge Carrillo & Yannick Lung & Rob Tulder (ed.), 2004. "Cars, Carriers of Regionalism?," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-52385-2.
    7. Yadong Luo & Rosalie L Tung, 2007. "International expansion of emerging market enterprises: A springboard perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 481-498, July.
    8. Yannick Lung & Jorge Carrillo & Rob van Tulder, 2004. "Cars, Carriers of regionalism?," Post-Print hal-00248180, HAL.
    9. John H Dunning, 1995. "Reappraising the Eclectic Paradigm in an Age of Alliance Capitalism," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(3), pages 461-491, September.
    10. Mathews, John A., 2002. "Dragon Multinational: A New Model for Global Growth," OUP Catalogue, Oxford University Press, number 9780195121469.
    11. Vernon, Raymond, 1979. "The Product Cycle Hypothesis in a New International Environment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 255-267, November.
    12. Yeong-Hyun Kim, 2004. "The Indian Passenger Car Industry and the South Asian Market: Global Auto Companies’ Struggles in India," Palgrave Macmillan Books, in: Jorge Carrillo & Yannick Lung & Rob Tulder (ed.), Cars, Carriers of Regionalism?, chapter 16, pages 247-261, Palgrave Macmillan.
    13. Huang,Yasheng, 2008. "Capitalism with Chinese Characteristics," Cambridge Books, Cambridge University Press, number 9780521898102, January.
    14. Grazia Ietto-Gillies, 2012. "Transnational companies and finance," Chapters, in: Jan Toporowski & Jo Michell (ed.), Handbook of Critical Issues in Finance, chapter 42, pages i-ii, Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

    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. Balcet Giovanni & Bruschieri Silvia, 2009. "Indian multinationals in the automotive and the pharmaceutical sectors: competitive advantages and strategies," Department of Economics and Statistics Cognetti de Martiis. Working Papers 200906, University of Turin.
    2. Andreff Wladimir & Balcet Giovanni, 2011. "Emerging multinational companies investing in developed countries: at odds with the HOS theorem?," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201107, University of Turin.
    3. Alessia Amighini & Claudio Cozza & Elisa Giuliani & Roberta Rabellotti & Vittoria Scalera, 2015. "Multinational enterprises from emerging economies: what theories suggest, what evidence shows. A literature review," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(3), pages 343-370, September.
    4. Sosa Andrés, Maximiliano & Nunnenkamp, Peter & Busse, Matthias, 2013. "What drives FDI from non-traditional sources? A comparative analysis of the determinants of bilateral FDI flows," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 7, pages 1-53.
    5. Gammeltoft, Peter & Cuervo-Cazurra, Alvaro, 2021. "Enriching internationalization process theory: insights from the study of emerging market multinationals," Journal of International Management, Elsevier, vol. 27(3).
    6. Lin Cui & Fuming Jiang, 2010. "Behind ownership decision of Chinese outward FDI: Resources and institutions," Asia Pacific Journal of Management, Springer, vol. 27(4), pages 751-774, December.
    7. Mustafa Sakr & Andre Jordaan, 2016. "Emerging Multinational Corporations: A Prominent Player in the Global Economy," Working Papers 201623, University of Pretoria, Department of Economics.
    8. Kübra Mert, 2020. "Türk Yazınında Uluslararası İşletmecilik: 1990-2019 Yıllarına Dair Bir İçerik Analizi," Istanbul Management Journal, Istanbul University Business School, vol. 0(89), pages 97-132, December.
    9. Ravi Ramamurti & Jenny Hillemann, 2018. "What is “Chinese” about Chinese multinationals?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(1), pages 34-48, January.
    10. Buckley, Peter J. & Munjal, Surender & Enderwick, Peter & Forsans, Nicolas, 2016. "Cross-border acquisitions by Indian multinationals: Asset exploitation or asset augmentation?," International Business Review, Elsevier, vol. 25(4), pages 986-996.
    11. Martín Obaya, 2015. "Technological learning in MNC subsidiaries operating in regional integration processes: a case study on an automotive company in MERCOSUR," Globelics Working Paper Series 2015-02, Globelics - Global Network for Economics of Learning, Innovation, and Competence Building Systems, Aalborg University, Department of Business and Management.
    12. Yadong Luo & Rosalie L Tung, 2018. "A general theory of springboard MNEs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(2), pages 129-152, February.
    13. Jacques Jaussaud & Serge Rey, 2012. "FDI to Japan and Trade Flows: A Comparison of BRICs, Asian Tigers and Developed Countries," Working papers of CATT hal-01880347, HAL.
    14. Pragyanrani BEHERA & Prajukta TRIPATHY & Bikash Ranjan MISHRA, 2020. "Do export, financial development, and institutions affect FDI outflows? Insights from Asian developing countries," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(623), S), pages 175-190, Summer.
    15. Peter J. Buckley & Adam R. Cross & Hui Tan & Liu Xin & Hinrich Voss, 2008. "Historic and Emergent Trends in Chinese Outward Direct Investment," Management International Review, Springer, vol. 48(6), pages 715-748, December.
    16. Federico BONAGLIA & Andrea GOLDSTEIN & John MATHEWS, 2006. "Accelerated Internationalisation by Emerging Multinationals: the Case of White Goods Sector," Working Papers 270, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    17. Sturgeon, Timothy J. & Van Biesebroeck, Johannes, 2009. "Crisis and protection in the automotive industry : a global value chain perspective," Policy Research Working Paper Series 5060, The World Bank.
    18. Exequiel Hernandez & Mauro F Guillén, 2018. "What’s theoretically novel about emerging-market multinationals?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(1), pages 24-33, January.
    19. Alvandi , Keyvan & Chaminade , Cristina & Lv, Ping, 2013. "Commonalities and differences between production-related FDI (PFDI) and technology-related FDI (TFDI) in developed and emerging economies," Papers in Innovation Studies 2013/47, Lund University, CIRCLE - Centre for Innovation Research.
    20. Mustafa Sakr & Andre Jordaan, 2016. "Emerging Multinational Corporations: Theoretical and Conceptual Framework," Working Papers 201604, University of Pretoria, Department of Economics.

    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:uto:dipeco:201109. 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: Laura Ballestra or Cinzia Carlevaris (email available below). General contact details of provider: https://edirc.repec.org/data/detorit.html .

    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.