Integrated Production Networks Research Articles

Changing global production network and its implication on Belt and Road Initiative

This editorial establishes the broader context for debating the great global convergence of world economic systems and the role of Belt and Road Initiative in shaping the reconfiguration of key global transport nodes and trade corridors. The interwoven relationships between various aspects of technological transformation, supply chain integration and demographic restructuring in shaping the global value chain and integrated production networks are theoretically and empirically probed in this special issue. The importance of technological innovation, and structural reforms are highlighted to help businesses to sustainably manage the growing supply chain complexity and the likely disruptions during the fourth industrial revolution.

Performance improvements in horizontally integrated production networks through real-time reschedulingin the event of disruptions

Performance improvements in horizontally integrated production networks through real-time reschedulingin the event of disruptions

FDI Inflows Influence Merchandise Exports? Causality Analysis for India over 1991-2016

The deepening waves of globalization since late eighties and the growth in the international integrated production networks (IPN) over the past decade have significantly increased both Foreign Direct Investment (FDI) and merchandise trade flows. India, whose share in global FDI inward stock and global merchandise exports have increased from 0.08 percent to 1.13 percent and 0.51 percent to 1.60 percent over 1989–2015 respectively, is no exception to this trend. The current paper attempts to explain the influence of FDI inflows on India’s exports through a time series analysis with quarterly data over the period 1990–91 (Q1) to 2015–16 (Q4) in the presence of multiple structural breaks. The empirical analysis indicates that while exports influence FDI inflows, the reverse is not true in the Indian context. The result underlines the fact that FDI inflows in the country may primarily be targeting the growing domestic sectors, rather than utilizing the domestic resources for reaching the world market.

Chinese apparel value chains in Europe: low-end fast fashion, regionalization, and transnational entrepreneurship in Prato, Italy

Focusing on of the Chinese immigrants in the apparel industry in Prato, Italy, the paper shows that the emergence of pronto moda (the apparel industry in Prato) is a unique response to the rise of fast fashion in Europe. Bridging the literature of regionalization and value chain studies with the literature of transnational entrepreneurship in economic geography, the author shows that the competitiveness of pronto moda lies in both production teams in Prato and transnational Chinese networks across Europe. In particular, three lesser known dimensions of pronto moda are revealed. First, the internal power asymmetry within the Chinese production teams in Prato helps to stabilize the potentially fluid production teams but at the same time further contributes to persistent labor irregularities. Second, transnational Chinese entrepreneurship is affecting the low-end fast-fashion market in Europe especially in the horizontally integrated production networks supported by Chinese manufacturers and traders which have complex impacts on other ethnic entrepreneurs across Europe. Finally, the latest changes in pronto moda point to the potential risks the industry is facing and some of the longest established Chinese firms in Prato have left manufacturing and outsourced to China, signaling a major transformation in the model of pronto moda.

China and the Asian Economies: mutual acceptance, economic interaction and interactive dynamics

The objective of this article is to explore the economic relationship between China and the surrounding dynamic Asian economies. It delves into China's influence over the Asian economies and whether this relationship has evolved in a market- and institution-led symbiotic manner. The three principal channels of regional integration analyzed in this article are trade, FDI and vertically integrated production networks. Another issue that this article explores is the so-called China ‘threat’ or ‘fear’ in Asia. The China threat implied that China was crowding out exports from the other Asian economies in the world market place. Also, as China became the most attractive FDI destination among developing countries, it was understood that China was receiving FDI at the expense of the Asian economies. These concerns were examined by several empirical studies and the inference was that they were exaggerated. The article concludes that China methodically expanded and deepened its economic ties with its regional neighbors. At the present juncture, China's integration with the surrounding Asian nations is deep. Both China and its dynamic Asian neighbors have benefited from this synergy.

The Role of China in Asia's Evolution to Global Economic Prominence

The objective of this article is to show how China’s rapid growth was instrumental in integrating Asian economies with each other and mutually supporting rise of a dynamic Asia. It demonstrates the thorough structural transformations that the Chinese and Asian economies underwent over the last three decades. In a short span of three decades Chinese economy made a sizeable regional and global niche for itself. China’s vertiginous growth became instrumental in integrating the real economies in the region. China and the neighbouring Asian economies influenced and shaped each other’s economic evolution. Trade, foreign direct investment (FDI) and vertically integrated production networks were the principal channels of market-led integration. China’s rise as a regional economic power, before becoming a global one, was a substantially significant economic event. A defining moment in China’s economic relationship with its Asian neighbours was the outbreak of the regional financial crisis in 1997-98. Similarly when the global financial crisis (2007–09) struck, China’s macroeconomic fundamentals were strong, and it helped propel regional growth. In several other important ways, China sways not only the regional economies but also the global economy.

The Role of China in Asia's Evolution to Global Economic Prominence

AbstractThe objective of this article is to show how China's rapid growth was instrumental in integrating Asian economies with each other and mutually supporting rise of a dynamic Asia. It demonstrates the thorough structural transformations that the Chinese and Asian economies underwent over the last three decades. In a short span of three decades Chinese economy made a sizeable regional and global niche for itself. China's vertiginous growth became instrumental in integrating the real economies in the region. China and the neighbouring Asian economies influenced and shaped each other's economic evolution. Trade, foreign direct investment (FDI) and vertically integrated production networks were the principal channels of market‐led integration. China's rise as a regional economic power, before becoming a global one, was a substantially significant economic event. A defining moment in China's economic relationship with its Asian neighbours was the outbreak of the regional financial crisis in 1997–98. Similarly when the global financial crisis (2007–09) struck, China's macroeconomic fundamentals were strong, and it helped propel regional growth. In several other important ways, China sways not only the regional economies but also the global economy.

Spillover Effects of Carbon Footprint Labelling on Less Developed Countries: The Example of the East Asia Summit Region

The spillover effects of carbon footprint (CFP) labelling are particularly significant in the East Asia Summit (EAS) region which has closely integrated production networks, wide development gaps and predominantly small and medium‐sized enterprises. Poor management of the effects would undermine not only the effectiveness of CFP labelling, but also EAS efforts towards economic integration and the narrowing of development gaps. Well‐designed labelling schemes, accessible and affordable data and transparent certification processes are essential, as well as capacity‐building and engagement of non‐labelling countries, in particular LDCs.

Verbund‐Simulation – Strategic Planning and Optimization of Integrated Production Networks

AbstractStrategic analysis and optimization of highly integrated production networks is an essential requirement for cost‐effective and resource‐efficient production. This paper presents a comprehensive software‐based concept for modeling, simulation, optimization, and visualization of an integrated silicone production network of Wacker Chemie AG. A Verbund‐Model was implemented in a step‐by‐step approach, starting with primary material streams in one business unit up to the modeling of all energy, waste, and cost streams in several business units. The system's flexibility enables different levels of detail for modeling processes and parts of the network: from simple input‐output relations to complex, nonlinear equations and specifications. The proactive implementation of technical measures and projects based on the assessment of future scenarios is an important outcome of the Verbund‐simulation.

Knowledge circulation in vertically integrated production networks: Cases of the Argentine automotive and iron and steel industries

SummaryThe goal of this article is two-fold: on the one hand, we develop a methodology that is able to quantify the knowledge circulation inside a Vertically Integrated Production Network (PNW). On the other hand, we will apply such methodology to a set 150 Argentine firms supplying either the automotive or the iron and steel industries. Both industries are different in commercial results as well as in their participation in international markets. We investigate whether or not differences in networking are significant to the understanding of different performances. We find that the PNW organised by the steel firms allows for a better knowledge circulation. We also find that the Linkage Style within the PNW is significant for explaining techno-productive capabilities. Such relevance of the knowledge circuit and the way the PNW incentives it constitute an essential point that contributes with the comprehension of the different performances between both PNW.

Coming full circle? Forging missing links along Nike's integrated production networks

Abstract ‘Global’ corporations are being held accountable for conditions at sites of production, formerly the domains of their foreign contractors. This shift was exemplified when consumers in Nike's largest markets began replacing the excitement of the latest pair of Nike shoes with a question: ‘Should I be wearing Nike shoes?’ With existing analytical tools, we cannot comprehensively answer this question. To do so, we need a more complete picture of international production networks, their interrelationships among agents and their geographies. The use of an integrated production network that links consumption and production analyses and place‐based conditions accomplishes this goal. This integrative approach allows for more thorough investigations of firm networks, the regions where they interact, the labour upon which they depend, and the consumers that influence their behaviour. Furthermore, investigating ‘feedback loops’ between these facets provides a means of understanding how reforms along production networks are mediated.