Global Production Networks and strategic coupling in value chains entering peripheral regions

Abstract

In economic geography, scholars have discussed how endogenous regional sources of skills, networks and capital have led to new regional industrial growth. However, extra-regional dimensions and global production networks has mostly been left behind in the literature. In this paper, I develop a conceptual framework through the eanalysis of how exogenous sources are coupled to regional actors through the lenses of Global Production Networks and Global Value Chains in offshore oil. The author find that strategies in GPN lead firm vary between local integrative strategies and more complex global strategies. I demonstrate that GPN strategies have different impacts on local development processes, whereby strategies in the early phases of the value chain (i.e. drilling and seismic surveys) were path dependent and led to few local linkages due to lack of competence and infrastructure locally. The GPN strategies in late stages of the value chain (operations) were more context sensitive, as GPNs sought new solutions in procurement and oil spill preparedness, which together increased the local linkages. The implications for policy are to develop cautious regional development policies that are sensitive to specific GPN value stages and lead firms within GPNs.