How the globalisation and financialisation of mining Majors affects linkage development with local engineering and technology suppliers in the Queensland resources industry

Abstract

The development of linkages between multinational resource firms and their local upstream suppliers in engineering, technology and knowledge services is an opportunity for mining regions to avoid the resources curse and to satisfy sustainable industrial development goals. However, lead firms operate within the political-economic context of globalisation and financialisation, which affects their strategies and management practices and their contribution to the development of local supply chains in the resources sector. This paper explains how lead firms in the resources industry in Queensland, Australia are influenced by the agendas of global financial markets. These agendas drive metrics based procurement practices and a short-term focus in relations with local suppliers, which ultimately impedes the ability of supplier firms to penetrate global value chains and limits the broader economic development benefits of resource extraction.