Jesús F. Lampón

Factors behind international relocation and changes in production geography in the European automobile components industry

This article analyses business strategies in the automobile sector to determine the key factors behind production relocation processes in automobile components suppliers. These factors help explain changes in production geography in the sector not only in terms of location advantages but also from a perspective of corporate strategies and decision-making mechanisms within firms. The results obtained from an empirical study in Spain during the period 2001-2008 show how the components sector has used relocation to meet the requirements for efficiency imposed by automobile manufacturers. The search for lower labour costs, production concentration and specialisation in order to obtain economies of scale and improved productivity are found to be the main factors determining relocation in the sector. These processes are facilitated by the operational flexibility of the multinational firms that dominate the sector which allows them to transfer resources internationally. Lean supply, technological requirements for production processes and the integration of production plants in the institutional environment are the main barriers to such processes of mobility, and may also determine the geographical destination of migrated production.

Why Firms Relocate Their Production Overseas? The Answer Lies Inside: Corporate, Logistic and Technological Determinants

The paper analyses the drivers of international production relocation using a model built on intra-corporate factors. The results of an empirical research on an original and thorough data base for the Spanish automobile parts sector over the period 2001-2008 show the impact of corporate restructuring strategies on flexibility for transferring resources overseas. In particular, the larger the number of alternative plants in other countries, the greater the operational flexibility and, therefore, the more likely relocation will be. Second, lean supply requirements and technological complexity in the product or process at production plant level are both serious barriers to mobility. Finally, our results confirm that sunk costs are irrelevant in comparison with corporate factors.

International relocation and production geography in the European automobile components sector: the case of Spain

This article, based on the various approaches to location theory, analyses relocation processes in the Spanish automobile components industry in order to explain the importance of internal factors at both corporate and production plant levels. While acknowledging that location advantages play a relevant role, we show that changes in production geography can, to a great extent, be explained by corporate strategies, other decision-making mechanisms and firms’ characteristics. The results obtained from an empirical study during the period 2001–2008 show that the search for lower labour costs and corporate restructuring in order to achieve global production efficiency are the main factors determining relocation in the Spanish sector. These processes are facilitated by the operational flexibility of the multinational firms that dominate the sector. Lean supply and technological requirements are the main barriers to such processes of production plant mobility. From the point of view of practical relevance, the article shows that these logistic and technological determinants should be considered by managers in their relocation decisions not only in terms of cost efficiency but also in terms of the risks involved in relocation processes. Any relocation project must include measures to mitigate such risks.

The governance of regional research networks: lessons from Spain

ABSTRACT The governance of regional research networks: lessons from Spain. Regional Studies. This paper studies in depth the governance factors that influence performance in research networks promoted by regional policy-makers. Analysis of an original dataset, made up of 11 public research networks in Galicia (Spain), demonstrates that governance factors and performance are positively related. Strong ties – those with frequent and varied cooperative interactions – tend to prevail over weak ties, and networks with clearly defined structures and roles are also especially resilient. Companion-based trust has a significant and positive influence on performance. The implications suggest that when policy-makers decide to promote research networks, they should assess not only technical capabilities but also governance issues.

The impact of modular platforms on automobile manufacturing networks

Abstract This paper explores the impact on automobile manufacturing networks of adopting modular platforms to replace the standard platforms used to date. Analysis of European manufacturers’ production networks shows that the use of modular architecture improves coordination by increasing manufacturing mobility and thriftiness ability. The changes resulting from this new modular approach also allow manufacturing capacity to be reorganised and overcapacity to be partially eliminated. From the point of view of production systems, the adaptation of manufacturing processes and facilities to this new architecture should aim to increase flexibility by integrating production around a single platform, allowing for different dimensions and for a larger number of models to be produced in a single plant.