By Jeffrey D. Wilson (auth.)
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Additional resources for Governing Global Production: Resource Networks in the Asia-Pacific Steel Industry
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.