Relational links for insertion in non‐mass global value chains: Opportunities for middle‐income countries

Abstract

AbstractThis paper describes two Argentine case studies of firm's integration in global value chains (GVCs) that target non‐mass market segments in developed countries. The cases involve a manufacturer of high‐end footwear and a manufacturer of customized automotive parts. Based on the common findings in these two cases, we build a conceptual framework that emphasizes relational links as an opportunity of GVC insertion for middle‐income countries that cannot buttress their international competitiveness on low wages. We call these modes of insertion manufacturing with co‐design.