Knowledge circulation in vertically integrated production networks: Cases of the Argentine automotive and iron and steel industries

Abstract

SummaryThe goal of this article is two-fold: on the one hand, we develop a methodology that is able to quantify the knowledge circulation inside a Vertically Integrated Production Network (PNW). On the other hand, we will apply such methodology to a set 150 Argentine firms supplying either the automotive or the iron and steel industries. Both industries are different in commercial results as well as in their participation in international markets. We investigate whether or not differences in networking are significant to the understanding of different performances. We find that the PNW organised by the steel firms allows for a better knowledge circulation. We also find that the Linkage Style within the PNW is significant for explaining techno-productive capabilities. Such relevance of the knowledge circuit and the way the PNW incentives it constitute an essential point that contributes with the comprehension of the different performances between both PNW.