The aim of this study is to provide information to researchers by examining the basic norms of international investment activities, geographical clustering and R&D and innovation activities, which are thought to affect the innovation potential of the Turkish automotive industry. The evaluations made within the scope of the study are based on the observations and secondary data sources that emerged as the result of large-scale field studies carried out by the researcher. As a result of these evaluations, it has been revealed that the development of the sector, which historically bears the traces of late industrialization, has parallel features with the development of the Turkish Business System and that foreign-owned organizations have an absolute role in the historical development of the Turkish automotive industry. In addition, it is seen that export and outward FDI activities, which constitute one of the pillars of innovation, are carried out effectively in the sector. The hierarchical supply chain structure, which is shaped within the unique dynamics of the sector, is considered to constitute a remarkable field of study in terms of innovation potential. Finally, the geographical clustering feature of the sector in terms of spreading and institutionalizing innovation among organizations also constitutes an important incentive factor.
This study aims to investigate how the awareness, motivation, and capacity of local organizations affect vertical FDI spillovers in the Turkish automotive industry within the framework of institutional theory. A multiple case study method was used in this study, in which interviews, observations, and documents of seven local supplier organizations were subjected to content analysis. The findings show that the expectations of multinational companies for efficiency in buyer-supplier relationships have limited the awareness, motivation and capacity of local suppliers for internationalization and innovation. This situation prevents local organizations, especially those located at the lower rungs of the supply chain, from capturing the positive effects of vertical FDI spillovers.
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