| Abstract [eng] |
The iron and steel industry constitutes a significant proportion of international trade by providing inputs as intermediary commodities to wide variety of sectors such as construction, automotive, aviation, shipbuilding, mechanical equipment, and others. Therefore, condition of the steel production and consumption of a country is considerably related with its industrialization and development. Turkey as a competitive country in the steel industry has started to lose its rank among other competitive steel producer countries over the last five years. The purpose of this thesis is to recommend a guideline to improve competitiveness of Turkish steel industry by addressing present major problems. In the scope of this thesis, reasons of decline are researched, and the main problems of the industry in Turkey are identified through evidence from common industrial practices around the world related with the steel manufacturing. The problem analysis highlights the prevalent product focus of Turkey on lower value-added long steel products, external dependency on raw material and protectionist policies applied by foreign markets. Subsequent to the problem analysis, theoretical solutions are investigated within the context of the iron and steel industry and the concept of value chains to improve competitiveness. Eventually, eight improvement options addressing firm specific features and value chains of steel industry are revealed as a result of theoretical findings. Empirical research which is composed of mixed methods is carried out in three stages to examine applicability of these options on Turkish steel industry. First, steel industry dynamics are investigated through a quantitative correlational analysis of steel industry trends-economic activity relationships for top 10 steel producer countries in 2018 to determine exemplary export/import product focus of countries similar to Turkey in terms of correlations. Proposition of the research implies that learning from equivalent countries with similar correlations which are China, South Korea, and India, on their export product focus as high value-added flat steel, is the very first option to consider in a broad sense. Following analysis is done by an online survey via questionnaires for 28 Turkish steel companies in order to evaluate the compatibility of their features with improvement options. Firm size, partnership propensities, innovativeness, competitive priorities, and financial performance are chosen as constructs of steel industry competitiveness. Bivariate correlations are analysed according to the conceptual framework of firm specific features, then results are interpreted to explain current condition of Turkish steel companies before taking ultimate decision about revealed improvement options. For a more detailed understanding of readiness of Turkey’s steel industry for suggestions, third part of the empirical research, a qualitative value chain analysis is conducted within the frame of eight improvement options. A generic value chain of Turkish steel industry is drawn by analysis of trade data, annual reports of steel companies, and publications of Turkish Steel Producers Association. Consequently, influence of the revealed improvement options on the steel value chains of Turkey is discussed, and decisions are made. Results show that approved alternatives to improve competitiveness of Turkish steel companies are: manufacturing of high-quality alloy steels, shifting from low-value added long products to high value-added flat products, pursuit of R&D partnerships with innovation leaders, implementation of green logistic practices and more active collaborations with suppliers to achieve the modular governance. Achieving any of these options is expected to improve competitiveness of steel companies in Turkey, when the decline of country’s industry in global competition is considered. |
