The dilemma of domestic suppliers on the periphery of the automotive industry global value chain

PurposeUnder the global value chain (GVC) approach, this paper aims to analyze how domestic suppliers on the periphery of the automotive industry are affected by their relationship with foreign multinationals.Design/methodology/approachA case study with primary data collected from foreign multinationals operating in the Mexican automotive industry was used to analyze their relationship with domestic suppliers.FindingsThe evolution of the suppliers has been characterized by improved quality and added value in their products and more asset-intensive, efficient processes. This evolution has been driven by improvement in production capabilities and investment in new equipment by domestic suppliers and facilitated by knowledge transfer from foreign multinationals. However, it has not involved the acquisition of innovation capabilities or the internationalization of production activities. This has limited their position on the first levels of the value chain and their global presence, which are essential aspects when climbing the industry value chain to lead some activities at a global level. At the same time, most of these suppliers have become strategic and have a greater dependence on foreign multinationals. This poses a dilemma for domestic firms, as the relationship with these multinationals becomes more intense and dependent and at the same time reduces the possibility of leading activities in the value chain.Originality/valueThe paper analyzes the impact on domestic suppliers of their relationships with foreign multinationals, integrating traditional product, process and functional upgrading and new elements, in particular, participation in the GVC and dependence on multinationals.

Making Resilient Decisions for Sustainable Circularity of Fashion

The fashion and textiles industry, and policymakers at all levels, are showing an increased interest in the concept of circular economy as a way to decrease business risks and negative environmental impacts. However, focus is placed mainly on the material ‘stuff’ of textile fashion and its biophysical harms. The current material focus has several shortcomings, because fashion is a social-ecological system and cannot be understood merely by addressing its environmental dimensions. In this paper, we rethink the fashion system from a critical social-ecological perspective. The driver-state-response framework shows social drivers and ecological impacts as an adaptive social-ecological system, exposing how these interacting aspects need to be addressed for sustainable and resilient implementation of circular economy. We show how current responses to global sustainability challenges have so far fallen short. Our overall aim is to expand possibilities for reframing responses that better reflect the complex links between the global fashion system, culture and creativity and the dynamics of the living planet. We argue that reducing planetary pressure from the global fashion and textiles industry requires greater recognition of the system’s social drivers with more emphasis on the many cross-scale links between social and ecological dimensions. Resilient decisions aiming for sustainable circularity of the fashion industry must therefore pay attention to social activities beyond the industry value chain, not just material flows within it.

A Transition Towards Localizing the Value Chain of Photovoltaic Energy in Saudi Arabia

The present paper draws attention to the importance of localizing the value chain of photovoltaic solar energy in Saudi Arabia based on the country’s vision for 2030 to meet the expected increase in energy demand. This paper describes various obstacles and enablers and shows the critical factors that restrain the development of the value chain of photovoltaic solar energy. In this paper, different phases of upstream and downstream activities of the photovoltaic industry value chain related to the current situation in Saudi Arabia were examined and analyzed. This paper further examines the capabilities of the local content of photovoltaic solar energy to determine the scenarios that can be adopted to enhance the photovoltaic solar energy industry. This paper analyzes the expected significant positive impact of localizing the value chain of the photovoltaic solar energy industry on the socioeconomic development, job creation, and technology transfer in Saudi Arabia. The paper concludes with recommendations to facilitate the expansion of the photovoltaic solar industry in Saudi Arabia.

Peran Ekonomi Kreatif dalam Meningkatkan Industri Pariwisata di Seaworld Ancol

The tourism industry is an industry that can absorb many creative economic markets. The purpose of this paper is to evaluate the creative economic activities as added value that support the tourism industry. The creative economy analyzed here is the creative fashion economy, which is one of the supporters in providing direct income and advertising as a downstream chain of tourism to convey messages to consumers. Method used qualitative and quantitative by looking for regression between income and costs and based on questionnaires conducted on consumers. The results showed a relationship between costs of advertising incurred with income derived from visitor. In a qualitative analysis in the fashion subsector, fashion can contribute a value of 10-12% to revenue. To accelerate in this industry is by knowing the various sub-sectors that are part of the tourism industry value chain and increasing creativity and innovation of creative economic products (fashion and advertising). Keywords: creative economy; fashion; tourism industry, advertising; value chain.

From Green Building Material to Platform Economy: How MOSIA Upgrades Social Innovation and Leads Industrial Transformation

In the market of the healthy residence industry nowadays, the universal value of health has been increasingly emphasized and pursued. It caused the interior renovation process and quality to undergo increasingly strict inspections and requirements. To pursue sustainable development and solve the long-standing gap in the health field, Taiwan’s first ecological green building material manufacturer, MOSIA invested in establishing a social enterprise, GDcometrue.com. It connected the capabilities and resources of industry partners, such as designers, workers, equipment vendors, and material vendors, to reshape the industry value chain, set industry standards, develop a comprehensive green renovation solution, and guide the construction of industry ecosystem and put industry’s turnaround and innovation into practice. By transforming the industrial ecosystem, the company explores innovative business development and reconfigures and redeploys resources. GDcometrue.com shaped Asia’s first green renovation service system, then that system became Asia’s first and largest shared economy platform for “green design,” and promoted a benchmark business model for cross-industry cooperation. The company used its unique platform business model to create market value and satisfy the dynamic needs of the market and customers. Ultimately, the company achieved organizational ambidexterity to cope with industry environment changes and provide a novel solution for the gap in the global green building industry and green building material industry.

Hungarian Development Opportunities of the Resilient and Innovative Space Industry

This study was motivated by the fact that space industry has become one of the most innovative, rapidly developing, least crisis-sensitive industries, which grows dynamically worldwide. Its resilience to shocks is quite apparent. Since the outbreak of the pandemic1 in spring 2020, the sector preserved many jobs and created new ones, while its innovative and technological advances remained uninterrupted. This study – based on surveys, statistical and other databases – aims to take stock of the current state of the Hungarian space sector and industry, and to set out possible directions for state involvement to enhance further progress. Our research confirmed that the Hungarian space industry, although its direct contribution to social performance is moderate today, employs a significant number of highly skilled workers and introduces cuttingedge technologies. Furthermore, through its innovations and technological and scientific transfers, its contribution to the competitiveness of the Hungarian economy is significant, even at the current level of its capacities. With adequate support and wise investments, the added value, the growth and international potential and the global space industry value chain involvement the space industry can be exploited to a much greater extent than at present.