The chapter considers the role of linkages, lead firm strategies, industrial policies, and value chain governance in the performance of the South African plastic products industry. The extent to which the linkages of the plastic products sub-sector backwards with the polymers industry, and forwards to plastic automotive components, have influenced the performance of the industry is assessed. The forward linkages to the automotive industry are assessed through a comparative assessment of technological capability accumulation in South Africa with its relatively more successful upper-middle-income counterpart, Thailand. The analysis shows that vertical integration and horizontal collaborations through clusters, as well as the different roles played by multinational corporations and the state, have exerted a stronger influence on the accumulation of capabilities in Thailand, compared with South Africa. The assessment of backward linkages to polymers shows how the linkage development in South Africa has been undermined by market power in the upstream polymers industry. This is coupled with a failure of industrial policy to support diversified industries such as plastic products, including through addressing the challenges related to input prices and supporting the accumulation of capabilities.
In today's highly globalised, increasingly interlinked and extremely competitive auto industry, it is important to understand how some countries succeed in adopting the latest technologies while others are left behind. The creation of a competitive auto industry requires a deep supply chain. One that can compete in the global automotive space and develop and apply technologies as well as penetrate niche markets. Building on comparative research, this article seeks to understand the factors and power relations that led to the deepening of the Thai auto sector, specifically of its automotive component manufacturers, and how South Africa can learn from it.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.