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New high volume production, production linkages and regional development: the case of the microcomputer hardware industry in Ireland and Scotland

van Egeraat, Chris (2002) New high volume production, production linkages and regional development: the case of the microcomputer hardware industry in Ireland and Scotland. PhD thesis, Dublin City University.

Abstract
The dissertation explores the regional development effects, via production linkages, of subsidiaries of multinational enterprises that have adopted New High Volume Production (NHVP) approaches, in non-core regions NHVP approaches are positioned amid other post-Fordist forms of industrial organisation. There are literatures that suggest that the adoption of NHVP approaches will have positive implications for regional development of non-core regions because of greater indirect, backward linkage, effects. Theoretically, local linkage formation or buyersuppher proximity in NHVP industries might be the outcome of three drivers. It can be driven by a search for efficiency in product flow/logistics, efficiency in formal information exchange in the context of inter-firm functional integration and by sociocultural and institutional factors enhancing information flow in a local milieu. This dissertation investigates the role of the first two drivers in shaping the geographical configuration of backward linkages in NHVP industries. This is done in a case study of the microcomputer hardware industry in Ireland and Scotland. The findings of the case study do not support the positive suggestions of greater backward linkage effects. A detailed examination of the supply chains of the subsidiaries of foreign microcomputer assemblers shows that the vast majority of components and parts were imported from the Far East and, to a lesser extent, the USA. It is shown that efficiency in technical information exchange was a relatively insignificant driver for buyer-supplier proximity, and how this fact was related to the particular way NHVP manifested itself m the microcomputer hardware industry. Similarly, in relation to most material inputs, logistical efficiency did not lead to buyer-suppher proximity. It is shown that the supply chains generally involved inbound inventories, stored in local warehouses - ‘hubs’ - from where the manufacturing lines were supplied on a very frequent basis. This logistical solution should, however, not be interpreted as sub-optimal. A detailed examination of the key logistics data shows that the inbound logistics pipelines were tightly managed and that inventory levels and shipment frequencies were consistent with modem comprehensive logistics management principles. The dissertation also explores the actual impact that the NHVP plants had on the quality and competitiveness of their local suppliers in non-core regions. The findings show that, although the subsidiaries of the foreign microcomputer assemblers created few local linkages, they had a significant positive impact on the quality and competitiveness of nearly all local suppliers they were dealing with.
Metadata
Item Type:Thesis (PhD)
Date of Award:2002
Refereed:No
Supervisor(s):Jacobson, David
Uncontrolled Keywords:Industrial procurement; Computer industry; Manufacturing processes; Production management; Computer industry Ireland
Subjects:Business > Industries
DCU Faculties and Centres:DCU Faculties and Schools > DCU Business School
Use License:This item is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 3.0 License. View License
ID Code:18256
Deposited On:27 May 2013 13:36 by Celine Campbell . Last Modified 16 Nov 2018 11:05
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