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To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.worlddev.2010.04.007 Byline: Inge Ivarsson, Claes Goran Alvstam Keywords: global value chains; IKEA; technology support; supplier upgrading; Asia; China Abstract: We use detailed firm-level data from 2008 to show how the world's largest home-furnishing retailer, IKEA from Sweden, provides its suppliers in China and SE Asia with significant technological support to improve their products and processes. This demonstrates that even buyer-driven global value chains, coordinated by large retailers, have the potential to contribute to technological upgrading among many small, inexperienced producers of labor-intensive products. Theoretically, this suggests that the current value-chain theory needs to take into account the existence of a 'developmental' governance structure. Author Affiliation: University of Gothenburg, Gothenburg, Sweden Article History: Accepted 8 April 2010

In this study, we use detailed firm-level data from the heavy truck and bus plants of AB Volvo and its 389 local component suppliers in Brazil, China, India, and Mexico to investigate the extent to which domestic suppliers are able to compete with international follow-source suppliers, and improve their operations through technological assistance from their transnational corporation customer. Although follow-source suppliers have captured large shares of local purchases, our findings show that technology transfers from industrialized to developing economies are to a large extent based on local interfirm linkages arising from regular production activities. An instance of this is Volvo, which provides its domestic suppliers with technological assistance, enhancing them to improve their operations. Our findings also show that long-term relationships are important in interfirm learning, although it was demonstrated that more short-term relationships can also generate benefits for domestic suppliers. Key words--international technology transfer, TNCs, local business linkages, domestic suppliers, truck and bus industry, developing countries

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.worlddev.2005.04.011 Byline: Inge Ivarsson, Claes Goran Alvstam Keywords: international technology transfer; TNCs; local business linkages; domestic suppliers; truck and bus industry; developing countries Abstract: In this study, we use detailed firm-level data from the heavy truck and bus plants of AB Volvo and its 389 local component suppliers in Brazil, China, India, and Mexico to investigate the extent to which domestic suppliers are able to compete with international follow-source suppliers, and improve their operations through technological assistance from their transnational corporation customer. Although follow-source suppliers have captured large shares of local purchases, our findings show that technology transfers from industrialized to developing economies are to a large extent based on local interfirm linkages arising from regular production activities. An instance of this is Volvo, which provides its domestic suppliers with technological assistance, enhancing them to improve their operations. Our findings also show that long-term relationships are important in interfirm learning, although it was demonstrated that more short-term relationships can also generate benefits for domestic suppliers. Author Affiliation: Goteburg University, Sweden Article History: Accepted 13 April 2005