Contrasting Patterns in the Internationalisation of Supply Networks in the Motor Industries of Emerging Economies

Detailed industry and firm level research reveals a striking difference between the patterns of motor vehicle parts supply networks in two major transition regions — Central-Eastern Europe (CEE) and China. In CEE second and third-tier suppliers are well developed, and are generally capable of working within international supply networks. But there are virtually no domestically owned first-tier suppliers in CEE. In China, by contrast, there are a number of domestically owned first-tier suppliers supplying export markets. But second and third-tier suppliers present serious bottlenecks in that economy. The difference is explained in terms of differences in patterns of industrialisation in the two regions.