How to cope with the global value chain: lessons from Italian automotive suppliers. (13th March 2015)

• Record Type: Journal Article
• Authors: Castelli, Cristina; Florio, Massimo; Giunta, Anna
• Is Part Of: International journal of automotive technology and management. Volume 11:Number 3(2011)
• Page Start: 236
• Page End: 253
• Publication Date: 2015-03-13
• Subjects: automotive industry -- hub and spoke district -- fragmentation -- global value chains -- innovation -- internationalisation -- Turin -- Italy -- Fiat Group; Automobile industry and trade -- Management -- Periodicals; 338.456292068
• Languages: English
• ISSNs: 1470-9511

Abstract

In the past 20 years the automotive industry has been subject to fundamental changes, resulting in deverticalisation and dispersion of production across different regions. The structural changes strongly impacted on supplier firms localised in Turin (Italy), a hub and spoke district, featuring a wide supply chain polarised around Fiat Group, the lead company. Our case study examines the strategies implemented in the period 2000–2005 by a group of 13 selected suppliers, located in Turin area, to successfully participate to the global value chain. Our findings show that companies are pursuing a 'high road development strategy', based on client portfolio diversification, product and process innovation, cumulative internationalisation. More in general, future prospects for the local firms to survive international competitive pressures seem crucially depending on continuous learning and innovative firms' activities.