Reports
Discussion Papers
No.492 Boundaries of Firms and Catching Up by Latecomers in Global Production Networks: The Case of a Mexican Auto-Parts Manufacturer
by HOSHINO Taeko
February 2015
ABSTRACT
For
manufacturing
firms
in
developing
countries,
there
are
high
barriers
to
entry
and
to
catching
up
with
competitors
in
their
global
production
networks
(GPNs).
This
paper
examines
the
case
of
a
Mexican
auto-parts
manufacturer
that
succeeded
in
catching
up
in
the
automotive
GPN.
The
author
proposes
that
the
door
to
GPNs
is
open
thanks
to
frequent
changes
in
the
boundaries
of
firms,
and
also
stresses
the
importance
of
the
necessary
conditions
that
generate
opportunities,
including
institutional
settings
that
facilitate
market
entry
and
catching
up,
and
capability
building
by
firms
hopeful
of
entry.
Keywords:
boundary
of
firms,
global
production
network
(GPN),
automobile
industry,
auto-parts,
ISI,
export
industrialization,
Mexico,
Nemak,
Alfa,
Ford
JEL
classification:
L22,
L52,
L62,
N66,
N86,
O33
Please note that discussion papers are works in various stages of progress and most have not been edited and proofread and may contain errors of fact or judgment. Revised versions of these papers may subsequently appear in more formal publication series. The views expressed in this publication are those of the author(s). The IDE does not guarantee the accuracy of the data included and accepts no responsibility for any consequences arising from its use.