Localization Process of Japanese Automobile Companies in ASEAN—The Role of Local Parts Development Division at Toyota (original) (raw)

2018

Abstract

Based on previous studies on knowledge transfer, we examined how Toyota has been advancing localization of supply chain in ASEAN, especially in Thailand. In particular, we revealed that Toyota has been providing technical support to its suppliers by establishing a new specialized department in charge of technical support called the “Local Parts Development Division”. Developing the suppliers is necessary in developing countries such as ASEAN countries where industrial competitiveness is not yet well developed. However, most of the previous studies did not shed light on how Japanese companies have been building their supply chain in developing countries. This study is significant in that, and it examined how the Japanese automobile company “Toyota” recognized the industrial competitiveness in developing countries and built its supply chain.

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