Does a Foreign Subsidiary Create Positive Linkages with Local Suppliers? An Analysis of Governance and Upgrading in Toyota Argentina’s Automotive Value Chain

Abstract

This article explores the impact of the performance of Toyota Argentina (TASA) on the local auto parts suppliers in the country. The paper begins by providing a brief overview of the global value chains (GVCs) and the development links between automakers and local suppliers. Then, it introduces the trends in the Argentinian automotive industry during the 21st century, including the peculiarities of TASA, which has achieved great economic performance despite the industry’s structural and cyclical trends. Using a mixed methodology combining descriptive quantitative and qualitative methods, the paper analyzes the linkages between TASA and its suppliers. The article concludes with a general analysis of TASA’s governance and the upgrading processes of its suppliers based on the findings.