Perceptions of the Barriers to Localization Before and During the Covid-19 Pandemic: “A Case of Turkish Machinery Manufacturers”

Yıl 2025, Cilt: 6 Sayı: 1, 34 - 55, 22.06.2025

Tuğba Onur , Büşra Garip , Ayşegül Karataş

https://doi.org/10.58767/joinbat.1564150

Öz

Purpose: COVID-19 caused disruptions in international supply chains. Localization is one of the ways of dealing with this problem. Thus, this paper analyzes Turkish machinery manufacturing companies' perceptions regarding the barriers against localization pre and mid-COVID-19 to see whether the perceptions changed. In addition, the study applies Porter's Diamond Model as a framework to assess whether COVID-19 is perceived as a pressure to upgrade the industry's competitiveness.
Design/Methodology/Approach: The research design of the study was determined as a case study. The reason for this is that the case study is an empirical research form that investigates a current phenomenon and real life in depth with a single or a few units. In this context, the sample of the study was determined as the member companies of Sakarya Machinery Manufacturers Association. In the interviews with these companies, open-ended questions were administered in order to reveal the perceptions of barriers to localization. The interviews were deciphered and open coded. Findings were obtained through qualitative content analysis. In the analysis process, which was handled in two stages, 47 producers before the pandemic and a smaller group of 32 people during the pandemic were evaluated. It was concluded that there are significant perceived barriers to the production and marketing of domestic substitutes.
Findings: Marketing the substitutes of previously imported products are perceived more challenging than producing them. The perceived barriers slightly changed in mid-COVID-19 period. In addition, the sample underlines two more determinants in addition to the Diamond Model determinants: time and macroeceonomic stability.
Originality/Value: This paper handles localization both as a solution to supply chain disruptions and an opportunity to increase the competitiveness of the industry. Insights in localization by evaluating the barriers perceived by the Turkish machinery manufacturing industry in a longitudinal manner (pre-mid COVID 19 period) will deepen the concept for further research, especially in developing world.

Anahtar Kelimeler

Domestic Substitutes , Localization , The Diamond Model , COVID-19 , Machinery Industry , Manufacturing

Destekleyen Kurum

Doğu Marmara Kalkınma Ajansı

Proje Numarası

TR42/18/TD/0149

Perceptions of the Barriers to Localization Before and During the Covid-19 Pandemic: “A Case of Turkish Machinery Manufacturers”

Öz

Proje Numarası

TR42/18/TD/0149

Kaynakça

• Bayülken, Y. (2012). Makina imalat sanayi sektör araştırması (Yayın No: MMO/591). Makina Mühendisleri Odası.
• Belhadi, A., Kamble, S., Jabbour, C. J. C., Gunasekaran, A., Ndubisi, N. O., & Venkatesh, M. (2021). Manufacturing & service supply chain resilience to the COVID-19 outbreak: Lessons learned from the automobile & airline industries. Technological Forecasting and Social Change, 163, 120447. https://doi.org/10.1016/j.techfore.2020.120447
• Chobanyan, A., & Leigh, L. (2006). The competitive advantages of nations: Applying the “Diamond” model to Armenia. International Journal of Emerging Markets, 1(2), 147–164. https://doi.org/10.1108/17468800610658316
• Christopher, M. (2016). Logistics & supply chain management (5th ed.). Pearson Higher Ed.
• Chung, T. W. (2016). A study on logistics cluster competitiveness among Asia's main countries using the Porter's diamond model. The Asian Journal of Shipping & Logistics, 32(4), 257–264. https://doi.org/10.1016/j.ajsl.2016.12.010
• Clancy, P., O'Malley, E., O'Connell, L., & Van Egeraat, C. (2001). Industry clusters in Ireland: An application of Porter's model of national competitive advantage to three sectors. European Planning Studies, 9(1), 7– 28.
• Congressional Research Service. (2021). Global economic effects of COVID-19 (R46270). Retrieved from https://crsreports.congress.gov/product/pdf/R/R46270
• Creswell, J. (2007). Qualitative inquiry & research design: Choosing among five approaches (2nd ed.). Sage Publications.
• Curran, P. J. (2000). Competition in UK higher education: Competitive advantage in the research assessment exercise & Porter's diamond model. Higher Education Quarterly, 54(4), 386–410. https://doi.org/10.1111/1468-2273.00167
• Denzin, N. K., & Lincoln, Y. S. (Eds.). (2011). The Sage handbook of qualitative research (4th ed.). Sage Publications.
• Eisenhardt, K. M., & Graebner, M. E. (2007). Theory building from cases: Opportunities & challenges. Academy of Management Journal, 50(1), 25–32. https://doi.org/10.5465/amj.2007.24160888
• Erboz, G. (2020). A qualitative study on Industry 4.0 competitiveness in Turkey using Porter’s diamond model. Journal of Industrial Engineering & Management (JIEM), 13(2), 266–265. https://doi.org/10.3926/jiem.2915
• Eurostat. (2020). Industrial production down in March & April 2020. Retrieved From: https://ec.europa.eu/eurostat/web/products-eurostat-news/-/DDN-20200612-2
• Fang, K., Zhou, Y., Wang, S., Ye, R., & Guo, S. (2018). Assessing national renewable energy competitiveness of the G20: A revised Porter's Diamond Model. Renewable & Sustainable Energy Reviews, 93, 719–731. https://doi.org/10.1016/j.rser.2018.05.011
• Farquhar, J., Michels, N., & Robson, J. (2020). Triangulation in industrial qualitative case study research: Widening the scope. Industrial Marketing Management, 87, 160–170. https://doi.org/10.1016/j.indmarman.2020.02.001
• Fransman, M. (1986). Machinery in economic development. Palgrave Macmillan UK.
• Gokce, O. (2006). İçerik analizi: Kuramsal ve pratik bilgiler. Siyasal Kitabevi.
• Golgeci, I., & Gligor, D. M. (2017). The interplay between key marketing & supply chain management capabilities: The role of integrative mechanisms. Journal of Business & Industrial Marketing. 32(3), 472- 483. https://doi.org/10.1108/JBIM-05-2016-0102
• Hernantes, J., Labaka, L., Turoff, M., Hiltz, S. R., & Bañuls, V. A. (2017). Moving forward to disaster resilience: Perspectives on increasing resilience for future disasters. Technological Forecasting and Social Change, 121, 1–6. https://doi.org/10.1016/j.techfore.2017.05.011
• Hoek, R. van. (2020). Responding to COVID-19 supply chain risks—Insights from supply chain change management, total cost of ownership & supplier segmentation theory. Logistics, 4, 23. https://doi.org/10.3390/logistics4040023
• Hofmann, E., Sternberg, H., Chen, H., Pflaum, A., & Prockl, G. (2019). Supply chain management & Industry 4.0: Conducting research in the digital age. International Journal of Physical Distribution & Logistics Management, 49, 945–955. https://doi.org/10.1108/IJPDLM-11-2019-399
• Hu, L. (2022). The PPE industry in Italy during COVID-19: Supply chain disruption & the adoption of digital & social media in B2B firms. Journal of Business & Industrial Marketing, 37(10), 2050-2063. https://doi.org/10.1108/JBIM-01-2021-0005
• Hudecheck, M., Sirén, C., Grichnik, D., & Wincen, J. (2020). How companies can respond to the coronavirus. MIT Sloan Management Review, 1–13. https://www.alexandria.unisg.ch/handle/20.500.14171/112334
• Iakovou, E., Vlachos, D., Keramydas, C., & Partsch, D. (2014). Dual sourcing for mitigating humanitarian supply chain disruptions. Journal of Humanitarian Logistics and Supply Chain Management, 4, 245–264. https://doi.org/10.1108/JHLSCM-03-2013-0008
• Ivanov, D. (2019). Disruption tails & revival policies: A simulation analysis of supply chain design & production- ordering systems in the recovery & post-disruption periods. Computers & Industrial Engineering, 127, 558–570. https://doi.org/10.1016/j.cie.2018.10.043
• Jin, B., & Moon, H. C. (2006). The diamond approach to the competitiveness of Korea's apparel industry: Michael Porter & beyond. Journal of Fashion Marketing & Management: An International Journal, 10(2), 195– 208. https://doi.org/10.1108/13612020610667504
• Kharub, M., & Sharma, R. K. (2016). Investigating the role of Porter’s diamond determinants for competitiveness in MSMEs. International Journal for Quality Research, 10(3), 471-486. https://doi.org/471–486. 10.18421/IJQR10.03-02
• Kochan, C. G., & Nowicki, D. R. (2018). Supply chain resilience: A systematic literature review & typological framework. International Journal of Physical Distribution & Logistics Management, 48, 842–865. https://doi.org/10.1108/IJPDLM-02-2017-0099
• KOSGEB. (2023). Destekler. https://kosgeb.gov.tr/site/tr/genel/destekler/3/destekler
• Kumar, M., Basu, P., & Avittathur, B. (2018). Pricing & sourcing strategies for competing retailers in supply chains under disruption risk. European Journal of Operational Research, 265, 533–543. 5 https://doi.org/10.1016/j.ejor.2017.08.019
• Liu, F., & Park, K. (2021). Managing firm risk through supply chain dependence: An SME perspective. Journal of Business & Industrial Marketing, 36(12), 2231–2242. https://doi.org/10.1108/JBIM-05-2019-0229
• Lücker, F., Seifert, R. W., & Biçer, I. (2019). Roles of inventory & reserve capacity in mitigating supply chain disruption risk. International Journal of Production Research, 57, 1238–1249. https://doi.org/10.1080/00207543.2018.1504173
• Merriam, S. B. (1998). Qualitative research & case study applications in education: Revised & expanded from "Case study research in education." Jossey-Bass Publishers.
• Miles, M., & Huberman, A. (1994). Qualitative data analysis (2nd ed.). Thousand Oaks: Sage Publications.
• Niu, B., Xie, F., Mu, Z., & Ji, P. (2020). Multinational firms’ local sourcing strategies considering unreliable supply & environmental sustainability. Resources, Conservation & Recycling, 155, 104648. https://doi.org/10.1016/j.resconrec.2019.104648
• Ponomarov, S. Y., & Holcomb, M. C. (2009). Understanding the concept of supply chain resilience. The International Journal of Logistics Management, 20(1), 124–143. https://doi.org/10.1108/09574090910954873
• Porter, M. E. (1990). New global strategies for competitive advantage. Planning Review, 18(3), 4–14.Ralston P,
• Blackhurst J. (2020). Industry 4.0 & resilience in the supply chain: a driver of capability enhancement or capability loss? International Journal of Production Research. 58(16), 5006–50019. https://doi.org/10.1080/00207543.2020.1736724.
• Schmitt, T. G., Kumar, S., Stecke, K. E., Glover, F. W., & Ehlen, M. A. (2017). Mitigating disruptions in a multi- echelon supply chain using adaptive ordering. Omega, 68, 185–198. https://doi.org/10.1016/j.omega.2016.07.004
• SCI Week. (2019). The biggest disruptions faced by the supply chain industry.
• Simchi-Levi, A. D., Schmidt, W., Wei, Y., Zhang, P. Y., Combs, K., Ge, Y., et al. (2015). Identifying risks & mitigating disruptions in the automotive supply chain. Interfaces, 45(5), 375-390. https://doi.org/10.1287/inte.2015.0804
• Stake, R. E. (2008). Qualitative case studies. In N. K. Denzin & Y. S. Lincoln (Eds.), Strategies of qualitative inquiry (3rd ed., pp. 119–149). Sage Publications, Inc.
• Statista. (2020). COVID-19 - trade impact on the machinery sector by market 2020. Retrieved from: https://www.statista.com/statistics/1105182/economic-trade-impact-of-covid-19-on-the-machinery- industry-by-market/
• T.C. Sanayi ve Teknoloji Bakanlığı. (2018). Sanayi ve Teknoloji Stratejisi. Retrieved from: https://www.sanayi.gov.tr/2023-sanayi-ve-teknoloji-stratejisi
• T.C. Sanayi ve Teknoloji Bakanlığı. (2019). 2023 Sanayi ve Teknoloji Stratejisi. Retrieved from: https://www.sanayi.gov.tr/destek-ve-teşvikler/yatırım-teşvik-sistemleri
• Tektas, A., Gunay, E. N., Karatas, A., & Kuyucu, A. D. H. (2008). ICT capability & innovation utilization in Turkish SMEs:
• The case of machinery industry. Communications of the IBIMA, 5(6), 34–41.
• Trademap. (2021). Trade Statistics. https://www.trademap.org/Product_SelCountry_TS.aspx?nvpm=1%7c792%7c%7c%7c%7cTOTAL%7 c%7c%7c2%7c1%7c1%7c2%7c2%7c1%7c1%7c1%7c1%7c1
• Trademap. (2022). Trade Statistics. https://www.trademap.org/Product_SelCountry_TS.aspx?nvpm=1%7c792%7c%7c%7c%7c84%7c%7c %7c2%7c1%7c1%7c2%7c2%7c1%7c1%7c1%7c1%7c1
• TUIK. (2022). İşgücü İstatistikleri. Retrieved From: https://data.tuik.gov.tr/Kategori/GetKategori?p=Istihdam,- Issizlik-ve-Ucret-108.
• TUIK. (2022). Adrese Dayalı Nüfus Kayıt Sistemi Sonuçları. Retrieved From: https://data.tuik.gov.tr/Bulten/Index?p=Adrese-Dayali-Nufus-Kayit-Sistemi-Sonuclari-2023-49684.
• Tuncel, C. O., & Polat, A. (2016). Sectoral system of innovation & sources of technological change in the machinery industry: An investigation on Turkish machinery industry. Procedia - Social and Behavioral Sciences, 229, 214–225. https://doi.org/10.1016/j.sbspro.2016.07.131
• Committee for the Coordination of Statistical Activities (CCSA). (2020). How COVID-19 is changing the world: A statistical perspective (Vol. 1). United Nations. Retrieved from https://unstats.un.org/unsd/ccsa/documents/covid19-report-ccsa.pdf.
• Wagner, S. M., & Bode, C. (2008). An empirical examination of supply chain performance along several dimensions of risk. Journal of Business Logistics, 29, 307–325. https://doi.org/10.1002/j.2158- 1592.2008.tb00081.x
• Wuest, T., Kusiak, A., Dai, T., & Tayur, S. (2020). Impact of COVID-19 on manufacturing & supply networks - The case for AI-inspired digital transformation. Manufacturing & Supply Networks. SSRN Electronic Journal. http://dx.doi.org/10.2139/ssrn.3593540
• Yin, R. (2018). Case study research & applications: Design & methods (6th ed.). Sage Publications.
• Yin, R. K. (2009). Case study research: Design & methods (5th ed.). Sage Publications.
• Yoo, S., & Managi, S. (2020). Global mortality benefits of COVID-19 action. Technological Forecasting & Social Change, 160, 120231. https://doi.org/10.1016/j.techfore.2020.120231
• Zhao, Z. Y., Zhang, S. Y., & Zuo, J. (2011). A critical analysis of the photovoltaic power industry in China – From diamond model to gear model. Renewable & Sustainable Energy Reviews, 15(9), 4963–4971. https://doi.org/10.1016/j.rser.2011.07.057
• Zhu, Q., Krikke, H., & Caniëls, M. C. J. (2017). Integrated supply chain risk management: A systematic review. International Journal of Logistics Management, 28, 1123–1141. https://doi.org/10.1108/IJLM-09-2016- 0206