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By Jeffrey D. Wilson (auth.)

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Extra resources for Governing Global Production: Resource Networks in the Asia-Pacific Steel Industry

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In fact, such a scenario is a distinct possibility in global production networks which, by subjecting national economies and their firms to the competition from foreigners, creates a shared interest between states and firms in pursuing international competitiveness (Pickel 2005). State and firm priorities can be harmonious and mutually reinforcing in globalised industries – with states seeking to support firm competitiveness for national developmental purposes, and firms looking to states for assistance in adjusting to and succeeding under the rigours of global competition (D’Costa 2009; Lall 1991).

2001; 20 Governing Global Production Whitley 1998). Supporting this assertion, empirical studies have found differences between the governance structures of production networks based on the nationality of firms in the electronics (Borrus et al. 2000; Ernst & Ravenhill 1999), automobile (Mikler 2007), and textile industries (Gereffi 1999) industries. On the issue of regulatory environments, others stress the importance of the state as a key source of national and international regulations which shape production networks (Bair 2005; Raikes et al.

All of its three variables are technical factors, specific to either an industry or to particular firms within it. g. state agencies) – were bracketed from the analysis a priori. This exclusion of factors beyond technical attributes has become a major source of criticism of the GVC approach, on the grounds that it negates the importance of the political economy characteristics of both firms and the regulatory environments in which they operate. On the issue of firm characteristics, critics have argued that firm behaviour varies according to their nationality and institutional practices in their home and host states (Dicken et al.

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