Title: Globalization in the Computer Industry: Implications of the Asian Production Network for the U.S. - eScholarship
Abstract:ISR Paper based on book GLOBALIZATION IN THE COMPUTER INDUSTRY: IMPLICATIONS OF THE ASIAN PRODUCTION NETWORK FOR THE U.S Kenneth L. Kraemer and Jason Dedrick Center for Research on Information Technol...ISR Paper based on book GLOBALIZATION IN THE COMPUTER INDUSTRY: IMPLICATIONS OF THE ASIAN PRODUCTION NETWORK FOR THE U.S Kenneth L. Kraemer and Jason Dedrick Center for Research on Information Technology and Organizations University of California, Irvine INTRODUCTION The computer industry has been dominated throughout its history by U.S. companies that have developed most of the important innovations, set key technical standards, and still produce over two-thirds of the world's hardware, software and services. Periodic technology shifts such as the introduction of the minicomputer and personal computer have changed the structure of the industry, but in each case it was American companies who were the industry leaders. Despite the continuing leadership of U.S. companies, the actual production of computer equipment has shifted steadily away from the U.S., mostly to countries in the Asia-Pacific region. While U.S.-based companies still account for 65% of the world's computer hardware sales, the percent of the world's computer hardware produced in North America declined steadily, from 50% in 1985 to 28% in 1995. Meanwhile, the share produced in Asia grew from 23% to 47%, virtually replacing the U.S. production (Figure 1). This development is mainly the result of U.S. companies having organized complex global production networks, and Asian countries finding opportunities to participate in those networks. Figure 1. Company vs. country position in the computer industry World computer sales by location of vendor's headquarters World computer production by location of production % of world hardware production by location ROW Europe Asia N. America Europe Asia N. America Sources: McKinsey & Company, Inc., The 1996 Report on the Computer Industry (New York, NY: McKinsey & Company, Inc., 1996). Source: Elsevier, Yearbook of World Electronics Data (Elsevier Advanced Technology, various years). The rapid globalization of the computer industry has raised concerns that the U.S. was at risk of losing its industry leadership. Former U.S. Trade Representative Clyde Prestowitz predicted in 1989 that the Japanese would take over the computer industry as they had with televisions and other electronics products (Business Week, 1989). The next year, Intel CEORead More
Publication Year: 1998
Publication Date: 1998-01-01
Language: en
Type: article
Access and Citation
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot