The Evolution of the Electronics Industry in Johor (Malaysia): Strategic Coupling, Adaptiveness, Adaptation, and the Role of Agency

Abstract

Bringing together concepts from the global production networks and evolutionary economic geography literature, this article empirically examines the trajectory of the electrical and electronics industry in Johor (Malaysia). Based on trends in firm entries and exit as well as interviews with companies, we find limited robustness in the industry’s trajectory. While there is evidence of the role of ‘structure’ in this outcome, we argue that human agency - particularly the actions of subnational policy-makers – is key. This is manifest in a preference for fostering regional ‘adaptiveness’ through the often uncritical promotion of a diversity of economic sectors. This compromises the meaningful pursuit of regional ‘adaptation’ in the form of new and more complex branches emerging from existing industries. This arrested development, in turn, hinders an effective strategic coupling between the regional economy and multinational corporations, thus undermining regional resilience.