Standardization and segmented governance in the Peruvian alpaca fibre value chain

Abstract

ABSTRACT This article builds on and extends Global Value Chain theory through an examination of governance dynamics in the Peruvian alpaca fibre chain in the context of state-sponsored standardization during the period 1997–2013. We propose a Segmented Governance Model (SGM) showing a fragmented-concentrated supply–demand structure to describe and explain how micro and meso-scale interactions configure chain governance. The SGM allows a move beyond the traditional upstream–downstream analysis to accommodate the horizontal mobility of suppliers and buyers at pre-export segments of the chain. Findings show how mixed governance modes co-exist within and between segments and explain why convergence towards a coherent overall market governance does not occur as standardization unfolds. We suggest further studies applying the SGM to better explain national governance dynamics in commodity chains towards inclusive and sustainable engagement in global markets.