Ownership and innovative behaviour: The case of the South African automotive component manufacturing industry

Global Innovation Networks (GINs) have evolved from Global Production Networks (GPNs). GINs are charaterised by networking across the entire spectrum of innovation activities that includes research, technology development, product development, production, distribution and sales. This study investigates the influence firm ownership has on innovative behaviour. Firm ownership is defined by whether a firm is a single plant firm or part of an enterprise group, and if part of an enterprise group, whether the firm is the head office or a subsidiary. Ownership is further defined by the ratio of domestic to foreign capital. This study analysed the findings of an innovation survey conducted in the South African automotive component manufacturing industry. Some of the innovative behaviour that this study investigates are the innovation linkages and channels, the resources utilised for innovation, the type and importance of innovation and the strategies employed to access local and foreign markets. This research found support for the proposition that firm ownership has an important influence on the innovative behaviour of firms.