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Right arrow F23 - Multinational Firms; International Business
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Journal of Economic Geography 4 (2004) pp. 299-321
Journal of Economic Geography, Vol. 4, No. 3, © Oxford University Press 2004; all rights reserved.

Air cargo services and the electronics industry in Southeast Asia

Thomas R. Leinbach* and John T. Bowen, Jr.**

* Department of Geography, University of Kentucky, Lexington, KY 40506–0027, USA. email <leinbach{at}uky.edu>
** Department of Geography and Urban Planning, University of Wisconsin, Oshkosh, Oshkosh, WI 54901–8642, USA. email <bowenj{at}uwosh.edu>

Abstract

Air cargo services are among the most important producer services for manufacturers with internationalized production networks. In the context of supply chain management strategies, such services allow firms to respond more effectively to competitive forces in global markets. Our research aims to relate to and deepen the theoretical literature on advanced producer services and global production networks by examining the demand for air cargo services in the electronics industry in Southeast Asia, an industry and a region in which air cargo services are particularly significant. Using an air cargo intensity index for each of over 120 firms from Singapore, Penang, Kuala Lumpur, and Manila, we show that the diversity of air cargo usage is related to several aspects of firm structure and operation. Our research suggests that product type, internationalization, localization, product cycle (obsolescence), and other factors such as a firm's material management strategy are especially critical. New directions for research that will build upon these findings are noted.

Keywords: producer services, air cargo, electronics industry, Southeast Asia, global production networks, supply chain management, logistics,
JEL classifications: L93, R41, L63, O14
Date submitted: 14 October 2002     Date accepted: 2 June 2003


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