The Java automotive industry: between Keiretsu and Learning Region
by Dessy Irawati; Roel Rutten
J. for Global Business Advancement (JGBA), Vol. 4, No. 3, 2011

Abstract: This paper discusses two models for economic development of the automotive industry in the Indonesian Jabotabek region. The Keiretsu model combines access to Japanese knowledge with dependence on Japanese MNEs. To become less vulnerable in the global economy, the region needs to develop a capacity for indigenous growth based on interactive learning between regional firms. This corresponds to the Learning Region model. However, the hierarchical nature of the Keiretsu networks and the dependence of Indonesian firms on Japanese MNEs challenge the feasibility of this strategy. The paper thus raises the questions of the applicability of the Learning Region for developing economies.

Online publication date: Sun, 23-Oct-2011

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