Environmental Engineering

Governing Global Production: Resource Networks in the by Jeffrey D. Wilson (auth.)

By Jeffrey D. Wilson (auth.)

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

Sample text

Sensitive to concerns over the narrow scope of the GVC approach, proponents of the GPN framework aimed to broaden the analysis by being sensitive to the concept of space (particularly at the national and local levels) and the role of non-firm actors (especially but not limited to states) (Hess & Yeung 2006). To do this, the GPN approach drew on the concept of ‘embeddedness’, which contends that economic agents are embedded in complex sets of societal, territorial and network-based relationships (Hess 2004).

This deconcentrated industrial structure was not conducive for the development of a modern steel sector. Integrated steel production only occurred in three enterprises, none of which achieved the minimum efficient scale for steel production (which at the time was 2 mtpa in the world steel industry (O’Brien 1992: 134)).

To this end, it draws on broader insights from IPE to argue that the respective contributions of states and firms arise from their specific advantages, interest mutuality, and institutional features. This explanatory content also offers hypotheses for how production network governance will be constituted – predicting that firm interests will dominate in industries and contexts where firm-specific advantages are highly important, state interests will dominate when location-specific advantages are salient, and that levels of interest mutuality predict whether state-firm relations will be conflictual or cooperative.

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