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The obsolescing bargain theory within MNC – host country relations of the South African automotive industry

Dissertation (MBA)--University of Pretoria, 2014.

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Other Authors: Wocke, Albert
Format: Thesis
Language:English
Published: University of Pretoria 2015
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access_status_str Open Access
author2 Wocke, Albert
author_browse Wocke, Albert
author_facet Wocke, Albert
collection Thesis
dc_rights_str_mv © 2014 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria.
description Dissertation (MBA)--University of Pretoria, 2014.
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institution University of Pretoria (South Africa)
language English
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license_str Other — see source repository
provenance_str_mv Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository
publishDate 2015
publishDateRange 2015
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publisher University of Pretoria
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spelling oai:repository.up.ac.za:2263/44919 The obsolescing bargain theory within MNC – host country relations of the South African automotive industry Wocke, Albert ichelp@gibs.co.za Zulu, Mpumelelo UCTD Automobile industry and trade -- South Africa Collective bargaining Qualitative research Dissertation (MBA)--University of Pretoria, 2014. The success of the South African automotive production industry relies on the industry support programs from the Government. The industry’s seven Original Equipment Manufacturers (OEMs) of passenger vehicles are wholly owned by respective Multinational Companies (MNCs) and they, together with the Components suppliers, engage with the Department of Trade and Industry, as Host Country (HC), in the development of the automotive industry support programs. The research tested the Obsolescing Bargain Theory (Vernon, 1971) within the South African Automotive Industry context of three bargain cycles of the industry programmes, viz. 1989 Local Content Phase VI, the MIDP of 1995 and APDP introduced in 2013. The study explored the longitudinal interaction between automotive MNCs and the Host Country in terms of relative bargain power during the three bargain cycles. Using the qualitative single case study method, nine industry stakeholders were interviewed, and responses were triangulated with secondary data. The findings provided the following insights into the automotive industry’s bargain power relations between government and multinational companies: The relative bargain power shifted towards MNCs due to the locational disadvantage of the HC, FDI spill-over effects on components suppliers, employment and technology, as well as due to investments driven by short product cycles. Further insights emerged in terms of the collaborative nature of MNC-HC relations during the three bargain cycles due to industry significance. This research was of value in extending research on the obsolescing bargain theory, particularly in the manufacturing industry. It was also of value to the future of bargain relations between the automotive and manufacturing industries with the government, in general. zkgibs2015 Gordon Institute of Business Science (GIBS) Unrestricted 2015-04-28T08:06:02Z 2015-04-28T08:06:02Z 2015-03-24 2014 Mini Dissertation Zulu, M. (2014). The obsolescing bargain theory within MNC – host country relations of the South African automotive industry (MBA mini-dissertation).Gordon Institute of Business Science, University of Pretoria. Retrieved from http://repository.up.ac.za/handle/2263/1818 http://hdl.handle.net/2263/44919 en © 2014 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. application/pdf University of Pretoria
spellingShingle UCTD
Automobile industry and trade -- South Africa
Collective bargaining
Qualitative research
The obsolescing bargain theory within MNC – host country relations of the South African automotive industry
title The obsolescing bargain theory within MNC – host country relations of the South African automotive industry
title_full The obsolescing bargain theory within MNC – host country relations of the South African automotive industry
title_fullStr The obsolescing bargain theory within MNC – host country relations of the South African automotive industry
title_full_unstemmed The obsolescing bargain theory within MNC – host country relations of the South African automotive industry
title_short The obsolescing bargain theory within MNC – host country relations of the South African automotive industry
title_sort obsolescing bargain theory within mnc host country relations of the south african automotive industry
topic UCTD
Automobile industry and trade -- South Africa
Collective bargaining
Qualitative research
url http://hdl.handle.net/2263/44919