Patterns of convergence: global auto parts-automotive value chains and suppliers’ skill systems

Abstract

This chapter studies the pressures of globalisation on suppliers and the patterns of convergence in suppliers’ skilling strategies due to these pressures. It focuses on the effects of global competition in the auto parts-automotive industry and Mexican and Turkish firms’ participation in auto parts-automotive value chains (AACs). It examines the governance structures in global AACs, the expectations from suppliers in these chains, and the lead firms’ strategies to ensure that these expectations are met. The chapter evaluates how these dynamics affect the Turkish and Mexican auto parts suppliers and their skilling strategies. The chapter shows that the governance structures in AACs indeed put pressures on suppliers in Mexico and Turkey and influence suppliers’ skilling activities both directly and indirectly. This leads to similarities regarding the skill needs of supplier firms and the organisation of shop-floor workers. However, there is no convergence towards high-performance work systems.