How to cope with the global value chain: lessons from Italian automotive suppliers Online publication date: Fri, 13-Mar-2015
by Cristina Castelli, Massimo Florio, Anna Giunta
International Journal of Automotive Technology and Management (IJATM), Vol. 11, No. 3, 2011
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.
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