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Technology Transfer in the Global Automotive Value Chain: Lessons from the Turkish Automotive Industry

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Technology Transfer in a Global Economy

Part of the book series: International Studies in Entrepreneurship ((ISEN,volume 28))

Abstract

The automotive industry is one of the main contributors to value added, employment and exports of the Turkish economy and it has undergone major changes since the mid-nineties. Most automotive manufacturers in Turkey are either joint ventures or wholly-owned affiliates of multinational companies. Literature on global value chains point to the possibility of technology transfer occurring through backward linkages from automotive manufacturers to their suppliers. Here we analyze the existence and the importance of different types of knowledge and technology transfer mechanisms in the Turkish automotive industry. In addition, characteristics of local suppliers impacting on these transfers and their impact on firm performance are analyzed. To this end, a survey including a detailed questionnaire was administered to production/R&D managers of 158 automotive suppliers operating in Turkey in 2010. Findings confirm the existence of transfers from customers to their local suppliers on co-design and co-development activities, designing of production tools, development/improvement of quality control methods, cost reduction and design of materials. In addition, econometric analysis indicates that these transfers exert a positive effect on the performance of supplier firms.

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Notes

  1. 1.

    Patel and Pavitt (1991) and UNCTAD (2005).

  2. 2.

    Teece (1977). See also Eden et al. (1996), Blomstrom and Kokko (1998), Borensztein et al. (1998), Gorg and Greenaway (2004), Saggi (2005), and Smeets (2008).

  3. 3.

    In other terms, technology transfer potential of intraindustry FDI-related knowledge spillovers seems to be much less than those associated with interindustry spillovers. On this issue, see Javorcik (2004), Saggi (2005), and Saliola and Zanfei (2009).

  4. 4.

    Dicken (2007).

  5. 5.

    Humphrey and Memedovic (2003).

  6. 6.

    This development has had significant effects on the emergence of automotive suppliers in Turkey as well as on the acquisition of manufacturing and design capabilities by them: see Wasti et al. (2006).

  7. 7.

    SPO (2005).

  8. 8.

    See SPO (2005) for more information about the automotive sector in Turkey.

  9. 9.

    Ekmekci (2009) uses the first method – case study – to analyze knowledge and technology transfer in the Turkish automotive industry.

  10. 10.

    The two terms “buyers” and “customers or customer firms” will be used interchangeably in the sequel.

  11. 11.

    Data pertaining to the number of employees, sales, export share in sales, and R&D expenditures refer to the year 2008.

  12. 12.

    For instance, parts or components as motor, gear box, suspension, braking system, safety systems, and so on (in primary product class) were classified in the high-technology category; the parts as various automotive fasteners, headlight, ventilation ducts, damper, seat, internal trim materials, and such in the medium-technology category and the parts as mudguard, seat cover, indicator, signal arms, mirror, and exhaust silencer in the low-technology category.

  13. 13.

    The alternatives offered were (i) often (ii) sometimes and (iii) never.

  14. 14.

    This channel of tacit KTT may simply reflect the existence of close relationships between the supplier and the customer. By itself, it is probably of low significance as a channel of tacit knowledge transfer.

  15. 15.

    Note that these activities are costly in terms of direct expenses as well as opportunity costs incurred by customers, especially when on-the-job training is concerned.

  16. 16.

    Defined as firms competencies required to identify, acquire, use, adapt, assimilate, and modify embodied and disembodied technologies related to products and production processes. See Cohen and Levinthal (1990).

  17. 17.

    Berger (2005), Giroud (2003), Techakanont (2002), Techakanont and Terdudomtham (2004), and Wasti et al. (2006).

  18. 18.

    On the ordinal logistic models, see Maddala (1983), Liao (1994), Long (2001), and Verbeek (2008).

  19. 19.

    The probability of occurrence of the intermediate category may increase for some values of an explanatory variable and decrease for others: see Long (2001).

  20. 20.

    Pamukçu and Sönmez (2011).

  21. 21.

    More details on the findings of the econometric analysis are available from the authors upon request.

  22. 22.

    As mentioned earlier, the value of the estimated coefficient implies that being a more experienced firm reduces the probability of more frequent know-how transfers (often) while it increases the probability of non use (never) of this type of KTT.

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Author information

Authors and Affiliations

  1. METU TEKPOL, Department of Science and Technology Policy Studies, Graduate School of Social Sciences, Middle East Technical University, MM Building 220, Cankaya, Ankara, 06800, Turkey

    Mehmet Teoman Pamukçu

  2. Department of Economics, Middle East Technical University, Cankaya, Ankara, 06800, Turkey

    Alper Sönmez

Authors
  1. Mehmet Teoman Pamukçu
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  2. Alper Sönmez
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Corresponding author

Correspondence to Mehmet Teoman Pamukçu .

Editor information

Editors and Affiliations

  1. , Institute of Development Strategies, Indiana University, East 10th Street 1315, Bloomington, 47405, Indiana, USA

    David B. Audretsch

  2. , Department of Management & Organization, University of Augsburg, Universitaetsstr. 16, Augsburg, 86159, Germany

    Erik E. Lehmann

  3. , Department of Economics, University of North Carolina Greensboro, Greensboro, 27402, North Carolina, USA

    Albert N. Link

  4. , Department of Business Administration, University of Augsburg, Universitaetsstr. 16, Augsburg, 86159, Germany

    Alexander Starnecker

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Pamukçu, M.T., Sönmez, A. (2012). Technology Transfer in the Global Automotive Value Chain: Lessons from the Turkish Automotive Industry. In: Audretsch, D., Lehmann, E., Link, A., Starnecker, A. (eds) Technology Transfer in a Global Economy. International Studies in Entrepreneurship, vol 28. Springer, Boston, MA. https://doi.org/10.1007/978-1-4614-6102-9_16

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