Innovation and internationalisation in the white goods GVC: the case of Arçelik

International Journal of Technological Learning, Innovation and Development

Volumn 1, Issue 4, 2008, Pages 520-535

  Bonaglia, Federico ^a   Colpan, Asli M ^b   Goldstein, Andrea ^a  

^a OECD   (France)

^b KYOTO UNIVERSITY   (Japan)

Author keywords

emerging country; global value chains; innovation; internationalisation; multinational enterprises

Indexed keywords

EID: 84924262832     PISSN: 17531942     EISSN: 17531950     Source Type: Journal    
DOI: 10.1504/IJTLID.2008.021966     Document Type: Article

References (41)

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28. Subasi, H. (2006) Board Member, Koç Holding, Interview on July 24, 2006 in Istanbul.
29. Tschulena, G.R. (2005) ‘The increasing importance of sensors in household appliances’, Sensors in Household Appliances, pp.1–8.
30. See Bonaglia, F., Goldstein, A. and Mathews, J. (2007) ‘Accelerated internationalization by emerging markets’ multinationals: The case of the white goods sector’, Journal of World Business No. 42.
31. In particular, the European Directives on waste electrical and electronic equipment (WEEE, 2002/96/EC) and on the restriction of certain hazardous substances in electrical and electronic equipment (RoHS, 2002/95/EC), which entered into force on 13 February 2003. RoHS requires that any product containing any of six hazardous substances will have to be redesigned or withdrawn from the market by July 2006. Starting from 13 August 2005, producers are responsible for the financing of the management of electro-scrap.
32. In the early 1990s refrigerators and freezers accounted for an estimated 20% of the domestic electricity usage in the United States and in Germany. According to the U.S. Department of Energy minimum energy standards in effect since July 2001, the amount of energy used by a typical refrigerator must equal no more than that used by a 55-watt light bulb and since 2007 clothes washers must be 37% more efficient than those built in 2001.
33. Whirlpool, for instance, has launched new oven/refrigerators, which can be programmed to keep food cool all day and then cook it in time for supper.
34. Still, the increased capacity of manufacturers to steer consumers by offering a prima facie increasingly diversified models mix (in particular, between bottom- and top-range products) is in practice much more limited than would seem to be the case judging by the information provided by the manufacturers (Barbiroli and Focacci, 2003).
35. Arçelik had proposed to operate the six factories of Brandt located in France and to employ 4105 workers. The Israeli company took over seven factories and agreed with the Court to employ 4197 of 5300 workers.
36. Commenting on the acquisition of Arctic, Nedim Esgin, then CEO of Arçelik stated, ‘Known brand, new market share, competitive production cost, and potential of additional capacity are not only great opportunities for our business goals, but also values that contribute to our target to become a ‘global company’ (‘Arçelik Acquires Arctic of Romania’, Appliance Design, 5 September 2002).
37. In 1992, the central functions of the Cayirova and Eskisehir Plants were certified according to the ISO 9001. Today, all production facilities possess the ISO 9001 Quality Management System Certificate given by the Turkish Standards Institute (TSE) and the ISO 14001 Environmental Management System Certificate given by SGS Yarsley.
38. For example, Arçelik forged a partnership with Ubicom, a Californian company, to use Internet processors and networking softwares that enable device-to-device communication. Arçelik also bought a 1.92% stake in a California-based company called Scenix which produces chips to be used in smart household devices.
39. ‘Adapting to Change’, Appliance Design, 1 June 2004.
40. ‘AMDEA 2005 Reveals UK Market Trends’, Appliance, June 2005.
41. Beko Elektronik is one of Europe’s largest television OEM/OBM producers. The Beko brand was introduced in Turkey in 1956 and used for ‘brown goods’. In light of the different market structure, Arçelik decided to develop as an OBM in the UK and in France, leveraging on the Beko name, while continuing to operate as an OEM in Germany.