Abstract
Cross-border dispersion of production processes within vertically integrated global industries, with each country specializing in a particular stage of the production sequence, has been an increasingly important structural feature of economic globalization in the recent decades. This phenomenon, ‘global production sharing’’, opens up opportunities for countries to participate in a finer international division of labour within given products, instead of producing the product from beginning to end within its national boundaries. This chapter examines how the interplay of global sourcing strategies of multinational enterprises (MNEs) engaged in global production sharing and government policy in plugging domestic small and medium enterprises (SMEs) into global production networks through an illustrative case study of the export hub in the state of Penang in Malaysia. Forging operational links between MNE subsidiaries and local SMEs was an integral part of the export-led development strategy of the state. This policy emphasis was instrumental in fostering a SME supplier network around the operations of the MNE subsidiaries. A number of SMEs have become global players in their own right, with production bases in a number of other countries.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
