Foreign Involvement in the Spanish Automobile Industry: Internalising versus Networking

The authors focus on the internationalisation of automotive production in Spain. In the first part of the paper they discuss two main approaches of international production: internalisation theory and network theory. It is argued that both approaches may be applied in a staged model of internationalisation. In the second part they highlight patterns of internationalisation in the Spanish automotive sector in the last two decades, based on data gathered in Spain in the first months of 1991. The results indicate that both theoretical approaches may be invoked to clarify certain aspects of the Spanish case; however, the general staged approach is not supported. The conclusion therefore stresses the need to develop a more integrative approach to internationalisation which is part of a broader theory of spatial-organisational change.