Exploiting Linkages for Building Technological Capabilities

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One of the key ingredients of success in building internationally competitive industries lies in amassing a sizeable pool of competent suppliers of parts, components and accessories. This monograph examines how in developing countries suppliers of mechanical components at the low end of the technological trajectory build up key capabilities over time. The focus is on Vietnam’s motorcycle industry, which was rapidly transformed from a small, highly protected market to the world’s fourth largest motorcycle producer. This rare success resulted from intense competition between leading Japanese motorcycle manufacturers and local Vietnamese assemblers of imported Chinese components both attempting to gain supremacy in the emerging market. In particular, the book analyzes how local Vietnamese suppliers of motorcycle components exploited participation in contrasting types of value chains developed by the two groups of leading manufacturing firms, referred to here as Japanese and/or Vietnamese–Chinese chains, for accumulating strategic know-how. On the basis of historical evidence and recent empirical data collected through repeated rounds of in-depth fieldwork the analysis finds first,…

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