Global Value Chains in the Electronics Industry : Was the Crisis a Window of Opportunity for Developing Countries?

This paper presents evidence of the importance of electronics global value chains (GVCs) in the global economy, and discusses the effects of the recent economic crisis on the industry. The analysis focuses on how information is exchanged and introduces the concept of "value chain modularity." The authors identify three key firm level actors -- lead firms, contract manufacturers, and platform leaders -- and discuss their development, or "co-evolution" in the context of global integration. Company, cluster, and country case studies are then presented to illustrate how supplier capabilities in various places have developed in the context of electronics global value chains. The findings identify some of the persistent limits to upgrading experienced by even the most successful firms in the developing world. Four models used by developing country firms to overcome these limitations are presented: (1) global expansion though acquisition of declining brands (emerging multinationals); (2) separation of branded product divisions from contract manufacturing (original design manufacturing (ODM) spinoffs); (3) successful mixing of contract manufacturing and branded products (platform brands) for contractors with customers not in the electronic hardware business; and (4) the founding of factory-less product firms that rely on global value chains for a range of inputs, including production (emerging factory-less start-ups).

Bibliographic Details

Main Authors:	Sturgeon, Timothy J., Kawakami, Momoko
Language:	English
Published:	2010-09-01
Subjects:	ACCESSORIES, ADOPTION OF INFORMATION, ANALOG, APPLIANCES, ATM, AUTOMATION, AUTOMOBILES, AUTOMOTIVE, BACKUP, BACKUP SYSTEMS, BARCODE, BASIC, BEST PRACTICES, BRAND, BRAND NAMES, BRANDS, BUILDING AUTOMATION, BUSINESS MODEL, BUSINESS PROCESSES, BUSINESS RELATIONSHIPS, BUSINESSES, BUYER, BUYERS, CACHE, CACHE MEMORY, CAD, CALCULATORS, CAPITAL INVESTMENTS, CELLPHONE, CELLULAR PHONES, CENTRAL PROCESSING UNIT, CODES, COMMODITIES, COMMUNICATIONS NETWORKS, COMPACT DISKS, COMPANY, COMPETITIVE ADVANTAGE, COMPETITOR, COMPETITORS, COMPONENTS, COMPUTER MONITORS, COMPUTER PERIPHERALS, COMPUTER SYSTEMS, COMPUTERS, COMPUTING, CONNECTORS, CONSUMER ELECTRONICS, CONSUMER GOODS, CORPORATION, CPU, CPUS, CUSTOMER BASE, CUSTOMER DEMANDS, DATA PROCESSING, DAY-TO-DAY MANAGEMENT, DIGITAL, DIGITAL SIGNAL, DIGITAL SIGNAL PROCESSING, DIGITAL SYSTEMS, DIGITAL VIDEO, DIGITIZATION, DISK DRIVES, DISTRIBUTION NETWORKS, DISTRIBUTION SERVICES, DIVERSIFICATION, ELECTRONICS, ELECTRONICS INDUSTRIES, ELECTRONICS INDUSTRY, ELECTRONICS TECHNOLOGY, EMPLOYMENT, END USERS, END-USER, ENGINEERING, ENTERPRISE COMPUTING, ENTERPRISE RESOURCE PLANNING, ENTERTAINMENT, EQUIPMENT, EXPANSION, FINANCIAL RISK, FINISHED PRODUCTS, FIRMS, FLOW OF INFORMATION, FOREIGN DIRECT INVESTMENT, FUNCTIONALITY, GENERAL PUBLIC, GLOBAL ECONOMY, GLOBAL MARKETS, GLOBALIZATION, GRAPHICS, HARD DISK, HARDWARE, HOME MARKET, HORIZONTAL INTEGRATION, IMAGE, IMAGING, INDUSTRIAL DEVELOPMENT, INDUSTRIAL PRODUCTION, INDUSTRIAL STRUCTURE, INFORMATION SERVICES, INFORMATION SYSTEMS, INFORMATION TECHNOLOGIES, INFORMATION TECHNOLOGY, INITIAL PUBLIC OFFERING, INNOVATION, INSPECTION, INTEGRATED CIRCUITS, INTELLECTUAL ASSETS, INTERMEDIATE GOODS, INTERMEDIATE PRODUCTS, INTERNATIONAL TRADE, INTEROPERABILITY, INVENTORIES, INVENTORY, INVENTORY MANAGEMENT, IT INFRASTRUCTURE, KNOW-HOW, LABOR MARKETS, LICENSING, LINUX, MANUFACTURER, MANUFACTURERS, MANUFACTURING, MANUFACTURING INDUSTRY, MARKET ENTRY, MARKET POWER, MARKET SEGMENTS, MARKET SHARE, MARKET SHARES, MARKETING, MNC, MOBILE COMPUTING, MOBILE PHONE, MOBILE PHONES, MOTHERBOARDS, MOVEMENT OF GOODS, MULTINATIONAL, MULTINATIONAL CORPORATIONS, MULTINATIONALS, NAVIGATION, NETWORKING, NETWORKS, NEW MARKETS, NEXT GENERATION, OPEN STANDARDS, OPEN SYSTEMS, OPERATING SYSTEM, OPERATING SYSTEMS, OUTSOURCING, PARTY, PC, PCS, PERIPHERAL DEVICES, PERSONAL COMPUTER, PERSONAL COMPUTERS, PHYSICAL GOODS, POWER CONSUMPTION, PRICE COMPETITION, PRINTED CIRCUIT BOARDS, PRIVATE COMMUNICATIONS, PRODUCT CATEGORIES, PRODUCT DESIGN, PRODUCT DESIGNS, PRODUCT DEVELOPMENT, PRODUCT INNOVATION, PRODUCT QUALITY, PRODUCTION PROCESS, PRODUCTION PROCESSES, PRODUCTIVITY, PROTOTYPE, PUBLISHING, PURCHASING, R&D, RADIO, RESULT, RESULTS, RETAIL, RETAIL OUTLETS, RETAIL PRICE, RETAIL STORES, SALE, SALES, SAN, SATELLITES, SCANNERS, SEARCH, SEMICONDUCTOR, SEMICONDUCTORS, SERVER, SERVERS, SHOP, SIGNAL PROCESSING, SILICON, SMART PHONES, SOFTWARE APPLICATIONS, SOFTWARE DEVELOPMENT, SOFTWARE VENDORS, SPINOFF, SPINOFFS, SPREAD, STANDARDIZATION, STORAGE DEVICES, STORE, SUBSTITUTE, SUBSTITUTION, SUPPLIER, SUPPLIERS, SUPPLY CHAIN, SYSTEM SOFTWARE, SYSTEMS DESIGN, TECHNOLOGICAL CAPABILITIES, TECHNOLOGICAL CAPABILITY, TECHNOLOGICAL DEVELOPMENT, TECHNOLOGICAL INFORMATION, TELECOMMUNICATIONS, TELEVISION, TELEVISIONS, TIME ZONES, TRANSISTOR, VALUE CHAIN, VALUE CHAINS, VENDOR, VERTICAL INTEGRATION, VIDEO GAME, VOLATILITY, WAREHOUSE, WEB, WHOLESALE PRICE, WHOLESALE TRADE,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100913084841 https://hdl.handle.net/10986/3901
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