Modular Production Networks in Electronics: The Nexus between Management and Economics Research

In the last two decades, the electronics industry has evolved from a vertically integrated in-dustry to a vertically segmented one. This transformation has often been attributed to the modularization of electronic products. In this paper, we argue that the degree of modularity is an active choice variable for a firm. As a result, it is necessary to focus on the underlying fac-tors that drive both modularity and the organization of production. This provides insights into the transformation taking place in global electronics production, with vertical fragmentation, horizontal consolidation, and the growth of Asian electronics production.Modularity, electronics, outsourcing, contract manufacturing, East Asia

Modular Production Networks in Electronics: the Nexus between Management and Economics Research

In the last two decades, the electronics industry has evolved from a vertically integrated industry to a vertically segmented one. This transformation has often been attributed to the modularization of electronic products. In this paper, we argue that the degree of modularity is an active choice variable for a firm. As a result, it is necessary to focus on the underlying factors that drive both modularity and the organization of production. This provides insights into the transformation taking place in global electronics production, with vertical fragmentation, horizontal consolidation, and the growth of Asian electronics production.modularity, electronics, outsourcing, contract manufacturing, East Asia

Vertical Merger Enforcement Actions: 1994–April 2020

We have revised our earlier listing of vertical merger enforcement actions by the Department of Justice and Federal Trade Commission since 1994. This revised listing includes 66 vertical matters beginning in 1994 through April 2020. It includes challenges and certain proposed transactions that were abandoned in the face of Agency concerns. This listing can be treated as an Appendix to Steven C. Salop and Daniel P. Culley, Revising the Vertical Merger Guidelines: Policy Issues and an Interim Guide for Practitioners, 4 JOURNAL OF ANTITRUST ENFORCEMENT 1 (2016)

Product Modularity and the Rise of Global Value Chains: Insights from the Electronics Industry

In the field of economics, a vast literature has attributed the rise of global value chains to globalization-related forces such as declining costs of transportation, improvements in communications technology, and institutional and policy reforms in developing countries. Through an in-depth review of the industry transformation in the electronics industry, however, we find that an additional relatively unexplored factor is the modularization of electronics products. We analyze the mechanisms through which product modularization may lead to the rise of global value chains and discuss the implications for future research.modularity, global value chains, electronics, upgrading,

International competitiveness of the european economy with regard to the EU state aid policy: the case of nanoelectronics. Summary

The domestic growth of high-tech industries is seen as central to future economic development in many countries. In this context, companies are often granted high levels of state support (e.g. through subsidies or tax breaks) to promote growth and employment in these promising sectors or fields of technology. In Europe, however, state support opportunities are regulated by EU state aid control. The aim is to reduce state aid from member states in order to promote European integration and free competition within Europe. State aid is only granted by EU member states under certain conditions Subject and objective of the project The impact of EU state aid control on national policy-making in the field of nanoelectronics is being discussed particularly intensively. Nanoelectronics is regarded as an important cross-sectional technology or industry whose components are in demand and used in numerous user industries. In particular, the construction of new production facilities is massively supported by some states, and at the same time production sites are increasingly being established outside Europe. The effects of EU state aid control on the competitiveness of Europe and its member states such as Germany are generally complex and above all indirect. They depend centrally on the development of other factors in the innovation system (e.g. demand, domestic establishment of user industries), the interaction of these factors, the use of complementary policy instruments and the extent of public support in non-European countries. The Innovation Report therefore examines the following research questions: Which factors influence the attractiveness of individual countries as locations for nanoelectronics? How should the current competitiveness in Germany and Europe be assessed? What consequences would a loss of production capacities have for the entire "nanoelectronics innovation system"? To what extent is there a situation in the field of nanoelectronics that justifies state aid? How can a sustainable funding policy be implemented, especially under the given conditions of limited state aid possibilities? To what extent can the example of nanoelectronics be transferred to other technologies and sectors

Wholesale price contracts for reliable supply

Firms can enhance the reliability of their supply through process improvement and overproduction. In decentralized supply chains, however, these mitigating actions may be the supplier's responsibility yet are often not contractible. We show that wholesale price contracts, despite their simplicity, can perform well in inducing reliable supply, and we identify when and why they perform well. This could explain the widespread use of wholesale price contracts in business settings with unreliable supply. In particular, we investigate how the performance of wholesale price contracts depends on the interplay between the nature of supply risk and the type of procurement process. Supply risk is classified as random capacity when events such as labor strike disrupt the firm's ability to produce, or as random yield when manufacturing defects result in yield losses. The procurement process is classified as control when the buyer determines the production quantity, or as delegation when instead the supplier does. Analyzing the four possible combinations, we find that for random capacity, irrespective of the procurement process type, contract performance monotonically increases with the supplier's bargaining power; thus, wholesale price contracts perform well when the supplier is powerful. However, this monotonic trend is reversed for random yield with control: in that case, wholesale price contracts perform well when instead the buyer is powerful. For random yield with delegation, wholesale price contracts perform well when either party is powerful

Supply chain integration strategies in fast evolving industries

Purpose - The purpose of this paper is to define the "fast evolving industry" (FEI) and its supply chain management (SCM) challenges. The authors review and structure the literature regarding integration strategies and implementation methods to develop a strategic decision-making framework for SCM in the FEI. Design/methodology/approach - The authors conduct a review of SCM literature, including supply chain strategy, supply chain integration (SCI), agile and responsive supply chain and SCM for innovative and fast-changing industries. The authors develop a conceptual model and a decision-making framework and use four mini cases to provide support for the model and framework. Findings - The FEI, characterised by a high level of innovation and differentiation, short products/services lifecycle and high variety, is yet to be fully defined. Inherent uncertainty in FEI supply systems makes SCM in these industries a complex but strategic task for their managers. The framework and the model offered in this study, which employ a core competency concept and provide risk management strategies, offer a strategic tool for managers and scholars in the field to optimise their integration strategies and to operationalise integration decisions. Originality/value - Little research has been published on transferable and cross-industrial SCM in FEIs. This paper defines the FEI and its resource-related concerns and then offers a conceptual model and a strategic decision-making framework for SCI in FEIs

Factors Underlying the Formation of Industrial Clusters in Japan and Industrial Cluster Policy: A Quantitative Survey

The purpose of this report is to use information provided by a questionnaire survey to analyze the factors and processes underlying the formation of industrial clusters in Japan. The study, based on questionnaire surveys, forms part of an "Industrial Cluster Project". The Japanese government has implemented policies for industrial clusters so as to enable Japanese industries to maintain competitive power in global markets, and to aid the self-sufficient expansion of local industries. The government's project goes under the heading "Industry Agglomeration for the Recovery of Local Industries with respect to so-called "Industry Clusters." The authors aim to identify what expectations are held of government by the enterprises that make up industrial clusters. As part of our investigation, we used the results of a survey conducted by UNDP in 2004. Tsuji's study, published by the Osaka School of International Public Policy, surveyed 1198 small or medium sized manufacturing companies located in O ward, Tokyo and Higashi Osaka city, Osaka prefecture. The outcome of the present study, together with data from Tsuji's work on IT usage by SMEs in Japan, is meant to form the basis for policy design and implementation.Industrial Cluster Policy, Agglomeration, Innovation, IT, Industrial policy, Local industry, Japan