The Role of Intermediary Firms in Pakistan’s Integration into Automotive Global Production Networks

This dissertation examines the organizational form, governance structures, and developmental implications of Global Production Networks (GPNs) in the automotive sector, with a specific focus on the Lahore region of Pakistan. Drawing on the GPN framework, which conceptualizes production as a spatially and institutionally embedded process coordinated across borders, this study introduces and theorizes the concept of OEM-mediated GPNs, a distinct mode of global integration where lead firms delegate regional production to local Original Equipment Manufacturers (OEMs) through licensing or contractual arrangements, rather than direct investment. Through three interrelated empirical studies, this research explores how OEMs serve as critical intermediaries between global lead firms and local suppliers, shaping network structure, firm behavior, and regional development outcomes. The first study introduces the framework and develops a typology of local firms based on their roles and autonomy within OEM-mediated networks and contrasts these networks with traditional GPN models. The study highlights how OEMs act as gatekeepers of global access, enforcing quality standards and coordinating supply chains while embedding global strategies in localized contexts. The second study investigates the developmental outcomes of GPN participation for local supplier firms. It finds that while many firms experience growth and improved standards, their roles often remain limited to low-value-added functions. A smaller subset of firms, termed emerging suppliers, manage to leverage their initial positions into more autonomous and innovative roles through strategic repositioning and capability development. These findings underscore that the benefits of GPN participation are unevenly distributed and that structural constraints can inhibit meaningful upgrading. The third study extends the analysis to the multi-scalar dynamics of strategic coupling, analyzing how regional actors are incorporated into overlapping production networks operating at global, national, and local levels. It reveals a dual structure of industrial organization in Lahore: one anchored by globally integrated OEM-led networks, and another constituted by more flexible, regionally embedded supplier linkages. This study also critiques the limited role of the State in fostering indigenous innovation and calls for more targeted, firm-level policy interventions to support technological upgrading and regional development. Collectively, the dissertation contributes to GPN theory by identifying OEMs as under-theorized but powerful intermediary actors within global production systems. It demonstrates that OEM-mediated GPNs represent a hybrid network architecture with specific implications for network governance, firm autonomy, and regional development. The findings advocate for a more inclusive and nuanced theoretical understanding of GPNs that address the constraints and potentials of peripheral regions in the Global South seeking meaningful integration into the global economy.