Global Value Chains Research Articles

Substitution effect of Asian economies on China’s industrial and supply chains: from the perspective of global production network

This paper views China Production Network (CPN) as an integral component of the Global Production Network (GPN) and constructs null model (GIVCBN-I model) and the counterfactual model (GIVCBN-II or GIVCBN-III model) to identify and measure the potential industrial relocation risk exposure of CPN based on the Multi-Regional Input-Output (MRIO) table. The main findings are as follows. Firstly, Altasia will induce more of China’s industrial and supply chains to break compared with ASEAN, which also means that strong industrial complementarity exists between Japan, South Korea, India, Bangladesh and the ASEAN member countries, enabling Altasia to have a more significant substitution effect on China. Secondly, the counterfactual models’ network-level characteristic indicators are worse than those of the null model in economic terms, suggesting that removing trade barriers for intermediate goods within Altasia could lead to the decoupling of industrial sectors in the CPN, thereby accelerating the trend of China’s industrial and supply chains relocating offshore. Thirdly, according to the comparison results of node-level characteristic indicators, Altasia has weakened China’s influence scope, profitability, and robustness of risk within the global industrial and supply chains, but mainly concentrating on its resource-intensive and labor-intensive sectors rather than capital-intensive and technology-intensive sectors, which indicates that some China’s industrial sectors still maintain substantial competitive advantages in the GPN. In sum, this paper provides theoretical guidance for identifying and analyzing the trends of industrial relocation in the Asia-Pacific region and helps industrial policymakers deepen the understanding of regional economic integration and its impact.

The Impact of Global Supply Chain Pressures on Industrial Productivity: The Korean Experience

The Impact of Global Supply Chain Pressures on Industrial Productivity: The Korean Experience

Pristineness, heritage, and the dissociative power of place imaginaries: Marketing ‘dark places’ in global value chains

To qualify products as premium, branding and marketing initiatives often employ imaginaries about the product’s origin to invoke positive associations. Yet, little is known about the dissociative aspects of how these place imaginaries create value. In this paper I examine comparatively how in both one aesthetic and one relatively standardized agri-food market – wine and farmed salmon from Chile – imaginaries of pristine and traditional places are becoming central referents for product quality. I demonstrate how, in the context of rising sustainability demands in global value chains, the value of these place imaginaries lies not only in their power to create positive associations in the end market. Instead, they also help powerful actors to dissociate from locally contentious politics surrounding harmful social and environmental practices. The paper contributes to research on firms’ dissociative practices by disentangling the ideational and relational work through which value chain actors dissociate in qualification processes and draws implications for material changes in production systems in view of their environmental and social sustainability.

Do Tensions in the South China Sea Herald the Collapse of Global Supply Chains?

It is now widely recognized that geopolitical tensions disrupt global supply chains, complicating trade flows and increasing the risk associated with logistics operations. The South China Sea, a strategic and disputed region of the world, is a perfect illustration of the stakes involved in these disruptions. Situated between several Asian countries, the region is crucial to world trade, but is subject to territorial conflicts, notably between China and Taiwan. Its increasing militarization and abundance of natural resources exacerbate geopolitical tensions, given that the South China Sea is vital for the transportation of goods, linking Asian, European and American markets. My speculative paper looks at the possible collapse of certain global value chains under the pressure of geopolitical tensions, leading to the emergence of a logistically multipolar planet.

Bio-mimicking DNA fingerprint profiling for HLS watermarking to counter hardware IP piracy

The multifaceted, multivendor-based global design supply chain induces hardware threats of intellectual property (IP) piracy for modern computing and electronic systems. Current hardware watermarking techniques fall short either in terms of watermark strength (size of covert constraints generated) or number of security layers/variables involved in the security constraints generation process. This paper presents a novel approach for high level synthesis (HLS) watermarking by bio-mimicking DNA fingerprint profiling to counter hardware IP piracy. The proposed approach effectively captures the vital DNA fingerprint profiling phases such as DNA sequencing, DNA fragmentation, fragment replication, DNA ligase, etc. and bio-mimics them to generate a digital watermarking framework. The presented approach has been demonstrated on convolutional layer and JPEG compression-decompression (CODEC) algorithms that are widely used in several medical and machine learning applications. The proposed approach has been thoroughly compared with several state-of-the-art approaches. The proposed approach depicts superior security in the probability of coincidence of up to ~ 104 and tamper tolerance of up to ~ 10368 at 0% overhead as compared to the prior approaches.

What is a State-of-the-Art Definition of Supply Chain Resilience in 2024 – With a Systematic Literature Review

In light of escalating disruptions to global supply chains catalysed by events such as the COVID-19 pandemic and the Russo-Ukrainian war, the imperative of enhancing supply chain resilience (SCR) has become increasingly pronounced. The existence of varying definitions of SCR complicates efforts to quantitatively measure and assess resilience. To elucidate the essence of supply chain resilience, we conducted a meticulous systematic literature review (SLR) aimed at crystallizing a scientifically rigorous definition of SCR. Our SLR methodology involved comprehensive preparation and judicious paper selection, followed by a thorough analysis of supply chain resilience definitions. This analysis was conducted via the dimensions of three typical characteristics—preparedness, reaction, and recovery—and four foundational pillars—focus event, performance level, speed, and adaptive response. As a result, a robust definition of SCR is proposed, synthesizing insights from the three typical characteristics theory and the four pillars theory, supplemented with meaningful additions. The research contributes to developing frameworks for supply chain resilience measurement.

Assessing Southeast Asia countries’ potential in the semiconductor supply chain: an objectively weighting multi-criteria decision-making approach

The semiconductor industry serves as a key enabler of technological progress and economic growth on a global scale. With Southeast Asia emerging as a region of increasing importance in the global supply chain landscape, understanding the potential for its countries to participate in the semiconductor supply chain becomes crucial. Despite extensive research on global supply chain dynamics, a focused analysis on the role of Southeast Asia within this crucial industry has been notably absent, particularly considering recent geopolitical and economic shifts. This gap has been filled by employing a rigorously designed Multi-Criteria Decision Making (MCDM) approach that integrates the Criteria Importance Through Intercriteria Correlation (CRITIC) method and the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). Data on fifteen indicators, including economic stability, technological innovation capacity, and infrastructural capabilities, were collected and identified through an extensive literature review and consultations with stakeholders. These indicators were weighted using the CRITIC method to reflect their relative importance, and each country’s position relative to an ideal solution was assessed using the TOPSIS method. It was revealed that countries such as Singapore and Malaysia possess significant potential due to their advanced technological infrastructure and stable economic environments. Other countries, like Vietnam and Indonesia, were also found to exhibit promising capabilities, albeit with certain limitations. The study highlights the varying strengths and strategic areas that should be considered by policymakers and investors to enhance integration into the global semiconductor supply chain. Significant contributions to the strategic decision-making process have been made by providing a nuanced analysis of the region’s readiness and identifying specific areas for investment and policy intervention. By offering a methodological framework that can be adapted to other regions and sectors, not only has an existing research void been filled, but the practical understanding of effectively leveraging Southeast Asia’s potential in the semiconductor industry has also been enhanced.

Does global value chain participation and position lead to innovation in an emerging economy? Industry-level evidence from Indian manufacturing industries

This study examines the relationship between global value chain (GVC) embeddedness (participation and position) and innovation performance in India using data from the TiVA database for 14 manufacturing industries over the period 2009–2018. To account for the endogeneity issue arising due to reverse causality, the study employs a two-step system GMM. Empirical results show that GVC participation and position both significantly positively affect innovation performance, measured by the number of patent applications filed. However, participation has an inverted U-shaped impact. We contribute to the existing literature by further splitting GVC participation into forward and backward participations and finding that only forward GVC participation significantly impacts an emerging country’s innovation performance. These findings suggest that policymakers in emerging countries should prioritize improving GVC position through increased R&D expenditures rather than relying solely on excessive GVC participation for enhancing innovation.

Labor Law Liability of Multinational Corporations in Global Supply Chain

This paper examines the labor legal liability of multinational corporations within the global supply chain in the context of economic globalization. The legal governance of this issue has complexity because it involves multiple stakeholders, including international organizations, nations, and multinational corporations. Thus it necessitates coordinated efforts in legislation, judicial processes, and self-regulation. While existing laws and the labor compliance efforts of some multinational corporations have partially safeguarded labor rights, significant deficiencies remain. Addressing these deficiencies requires sustained legislative and judicial input from public entities. This requires more substantial protection and even expansion of the supervisory power of international organizations, such as the establishment of a tripartite negotiation mechanism to ensure their right to participate as independent subjects in labor rights protection. Improving the litigation procedure legislation to give international organizations the right to file public interest litigation to protect the rights and interests of workers in domestic courts will also be a probable choice. Additionally, multinational corporations must take concrete steps to uphold labor rights. Possible practices include assigning independent labor oversight bodies to suppliers and involving labor representatives in labor compliance efforts. Clarifying and enhancing the management of their labor legal responsibilities requires the joint efforts of public and private entities.

The Impact of the Digital Economy on International Trade Models: Opportunities and Challenges

With the rapid development of the digital economy, international trade models are undergoing profound changes. Digital technology has reshaped traditional trade structures, driving the reorganization of global value chains and the rise of intangible assets. This paper explores the new characteristics of international trade in the context of the digital economy, including the transformation of trade structures driven by digitalization, the increasing importance of intangible assets in trade, and the influence of digital ecosystems. The digital economy has made trade processes more convenient and efficient, offering new globalization opportunities for emerging markets and small and medium-sized enterprises (SMEs), and promoting the growth of cross-border services and digital products. However, challenges remain, such as disparities in digital infrastructure, conflicts between digital governance and cross-border data flows, and the diversity of digital trade rules. This paper summarizes these opportunities and challenges and suggests future research directions to help policymakers, businesses, and technology providers navigate the complex landscape brought about by the digital economy.

Assessing the impact of new technologies on wages and labour income shares

This paper advances the literature on the impacts of new technologies on labour markets, focusing on wage and labour income shares. Using a dataset from 32 countries and 38 industries, we analyse the effects of new technologies – proxied by patents, information and communication technology (ICT) capital usage, and robot intensity – on average wages and labour income shares over time. Our results indicate a positive correlation between patents and wage levels along with a minor negative impact on labour income shares, suggesting that technology rents are not fully passed on to labour. Robot intensity is positively associated with labour income shares, while ICT capital has an insignificant effect. These effects persist over time and are reinforced by global value chain (GVC) linkages. Our conclusions align with recent research indicating that new technologies have a generally limited impact on wages and labour income shares.

Multi-tier captive relations in the global value chain of tuna: The case of Fair Trade certification of small-scale tuna fishery in Indonesia

Voluntary sustainability standards have been used as a governance mechanism to ensure the sustainability of fisheries products traded from developing countries. Different standards have become market forces that actors along the value chain are expected to follow to access markets and remain competitive. Recent attention is also being paid to small-scale fisheries, but there is relatively little information about the efficacy of the translation of standards by all actors in the value chain. This study examines how a voluntary sustainability standard is translated from an international buyer down to the producer and the effectiveness of this on social and environmental sustainability. The global value chain (GVC) modular framework is applied to assess the implementation of and compliance with the standard. The analysis is done at the micro, meso, and macro levels. We use the first-ever Fair Trade USA certification for handline small-scale tuna fishery in Maluku, Indonesia, as our case study. The findings indicate that the captive forms of governance prevailing at the micro and meso levels of the value chain vary considerably. This adds a layer of complexity to the extent to which a sustainability standard changes the structure and governance of the value chain. The efficacy of such changes in promoting social and environmental sustainability is constrained by the unequal power dynamics among the various actors operating at the different levels. The findings from this study may contribute to optimizing the value chain for greater sustainability outcomes by involving local actors and accommodating various governance mechanisms to organize the value chain.

Environmental Dimension of Value Chain Linkages: Empirical Assessment of India’s Manufacturing Sector

The emergence of global value chains (GVCs) has presented emerging nations like India with possibilities to combine into the worldwide economic system, which has had a major effect on the economy and the environment. With India’s manufacturing sector accounting for 15% of India’s gross value added, it is one of the main engines of the country’s economic expansion. Additionally, it is vulnerable to changes in technology and ranks second in terms of carbon dioxide (CO2) emissions, after the production of electricity. This study attempts to draw interrelations between CO2 emissions embodied in trade and GVC participation for this sector. Using the autoregressive distributive lag approach for the time period 1995–2018, this study exhibits significant cointegration between value chain participation and embodied emissions in gross exports for the short run and long run. However, while the impact of economic growth is positive for foreign emissions embodied through imported intermediates and negative for the emissions embodied in India’s exports of domestic goods, there exist important policy implications in this regard. Also, it is vital for an emerging nation like India to accord primacy to other indicators like the Environmental Stringency Index and spending on research and development so as to reduce its carbon emissions and improve its ecology. Novelty in this study arises from the fact that it utilises inter-country input–output statistics, OECD on fuel combustion to the resident industry and household, where carbon emissions have been decomposed into the foreign and domestic emissions embodied in gross exports for India’s manufacturing sector. JEL Classification: F110, F664, B223

Supply Chain Shocks and Retail Resilience: The Dynamics of Global Value Chains and Inventories

Supply Chain Shocks and Retail Resilience: The Dynamics of Global Value Chains and Inventories

Innovative risk management techniques in food safety: A review of best practices and emerging trends

Effective risk management in food safety is critical to ensuring consumer protection and maintaining the integrity of global food supply chains. Traditional approaches, such as Hazard Analysis and Critical Control Points (HACCP) and Good Manufacturing Practices (GMP), have long been the foundation of food safety risk management. However, with the increasing complexity of food production and distribution, new challenges demand more advanced techniques. This review explores innovative risk management methods, focusing on best practices and emerging trends that are transforming food safety. Technological advancements are driving much of this innovation. Predictive analytics and machine learning now allow for real-time monitoring and hazard detection, improving the accuracy of risk assessments. Blockchain technology is being leveraged for enhanced traceability and transparency in the supply chain, ensuring faster recall management and improved accountability. The integration of IoT (Internet of Things) sensors provides continuous monitoring of environmental factors like temperature and humidity, which are critical in preventing contamination, especially in perishable goods. Additionally, risk-based inspection systems, supported by regulatory frameworks such as the Food Safety Modernization Act (FSMA), are becoming more prevalent, prioritizing resources where risks are highest. Emerging trends such as artificial intelligence (AI) for predictive risk management, big data analytics, and sustainability-driven risk approaches are reshaping the landscape. These innovations not only enhance risk mitigation but also align with consumer demands for greater transparency and environmental responsibility. Despite challenges such as cost, data privacy, and regulatory hurdles, the future of food safety lies in the continued development and adoption of these advanced techniques. This review highlights the potential of these innovative practices to improve food safety standards and protect public health in an increasingly interconnected world. Keywords: Innovative, Risk Management, Food Safety, Review.

Situational control and strategic choices during supply chain disruptions: case studies of SME exporters

PurposeMotivated by the severe impact of global supply chain disruptions and the lack of understanding of supply chain resilience from an SME exporter perspective in the international marketing literature, this paper sets out to explore how SME exporters achieve resilience through strategic choices related to sourcing and manufacturing during global disruptions.Design/methodology/approachThe study adopts a qualitative, multiple-case-studies approach to identify the key strategic drivers and contextual factors influencing SME exporters’ supply chain resilience. Our study adopted an SME exporter perspective and featured an unprecedented global supply chain disruption context. New Zealand (NZ) was chosen as the key home country context for the participants of this study. Five NZ SME exporters were selected for our case studies.FindingsThis study redefines buffering, bridging and a mixed strategy for an SME exporter facing global supply chain disruptions. SME exporters with high situational control are likely to pursue a buffering strategy that reduces their resource dependence on foreign suppliers and their reliance on information support from these suppliers. In contrast, when the firm perceives little control over the supply chain, it will decide upon a bridging strategy that aims to build solid relationships with supply chain partners. Exporters opt for a mixed strategy when they do not see themselves clearly in high or low situational control.Research limitations/implicationsAs global disruptions arise and evolve, supply chain uncertainty and exporters’ sense of situational control manifest differently across industries, product lines, markets and sourcing countries. It is essential to understand that firms can choose a mixed strategy based on these supply chain conditions. While our study was fortuitously timed, conducting multi-country studies could provide more comparative insights that transcend national borders. Additionally, our study did not examine organizational and capability-based factors. Future research may benefit from exploring how an SME exporter develops strategic capabilities to achieve resilience over its lifetime.Practical implicationsBusinesses see survival as the most pivotal concern during a global supply chain disruption. Many companies have had to make on-the-spot decisions about whether they should shift or redesign their supply chains in the middle of a global disruption. There is no “best strategy” for an SME exporter to take. Rather, managers should make strategic decisions based on how much control or influence they have over a particular part of their supply chain. The level of control is determined by the SME exporter’s overall resource dependencies and information needs in particular parts of their supply chain.Originality/valueWe adopt resource dependence theory and information processing theory to guide our study and place exporters' situational control in the centre of drivers to firms' strategic choices during global disruptions. We make a novel attempt to incorporate the contextual conditions of the COVID-19 pandemic into the theorization of supply chain resilience. We make managerial recommendations to help SME exporters navigate global supply chain disruption challenges.

The Duality of Technological Innovation and Dynamic Capabilities: The Micro-Foundation of China's Construction Machinery Industry's Rise up the Global Value Chain

In the context of global value chain reconstruction, Chinese construction machinery enterprises are facing the dual challenges of technological innovation and global competitiveness improvement. Based on organizational learning theory and dynamic capability perspective, this study constructs a theoretical framework of dual integration of technological innovation (exploratory innovation and pioneering innovation) and dynamic capability, and explores its impact mechanism on the global value chain upgrading of Chinese construction machinery enterprises. The study adopts a mixed research method, combining large-scale patent data analysis and in-depth case study, and constructs a longitudinal data set of 146 Chinese construction machinery enterprises from 2005 to 2022. By using structural equation modeling, dynamic panel regression and machine learning algorithms, this study reveals the following main conclusions: (1) The relationship between technological innovation duality and the global value chain position of enterprises is inverted U-shaped, and there is an optimal equilibrium point; (2) Dynamic capabilities partially mediate the relationship between technological innovation duality and global value chain climbing, among which absorptive capacity and reconstruction capacity are particularly critical; (3) The degree of internationalization of enterprises positively moderates the impact of technological innovation duality on dynamic capabilities; (4) The quality of the institutional environment moderates the relationship between technological innovation duality and dynamic capabilities, and a high-quality institutional environment strengthens the positive relationship between the two. The theoretical contributions of this study are: (1) it expands the global value chain theory and incorporates the duality of technological innovation into the analytical framework; (2) it reveals the mediating mechanism of dynamic capability theory in innovation and value chain climbing, enriching the dynamic capability theory; (3) it provides new empirical evidence for organizational learning theory and clarifies the dynamic process of exploration and utilization equilibrium. At the practical level, the research results provide guidance for engineering machinery companies to formulate innovation strategies and enhance global competitiveness, and also provide a basis for the government to formulate industrial upgrading policies. Future research can further explore the long-term evolution path of technological innovation duality and its differences in cross-cultural contexts.

Digital Transformation and Green Innovation Synergy: Double Drivers for Global Value Chain Upgrading in China's Construction Machinery Industry

With the digital transformation of the global economy and the deepening of the concept of sustainable development, China's construction machinery industry faces major opportunities and challenges in the reconstruction and upgrading of the global value chain. Based on the dynamic capability theory and the collaborative innovation theory, this study constructs a theoretical framework of "digital transformation-green innovation-global value chain upgrading" to explore the impact of the synergy between digital transformation and green innovation on improving the position of Chinese construction machinery companies in the global value chain. This study uses a multi-source data fusion method, combined with patent data, financial statements and questionnaires, to construct an unbalanced panel data set of 189 listed construction machinery companies in China from 2010 to 2022, and uses econometric methods such as dynamic panel modeling, threshold regression and machine learning to analyze. The study finds that: (1) The impact of digital transformation on the global value chain upgrading of construction machinery companies presents a nonlinear "U-shaped" curve relationship; (2) Green innovation plays a positive regulatory role in the relationship between digital transformation and value chain upgrading; (3) There is a significant synergy between digital transformation and green innovation ; (4) The quality of the institutional environment has an important impact on the synergy, and a high-quality institutional environment enhances the synergy; (5) Enterprise heterogeneity significantly moderates the impact of synergy on value chain upgrading. The study expands the theory of global value chains, enriches the theory of collaborative innovation, provides a new theoretical perspective for the integration of digital economy and green development, and provides practical guidance for enterprises and governments to formulate relevant strategies and policies. Future research can further explore the cross-national comparison and long-term dynamic evolution of synergy effects.Digital transformation

Omission in Adoption: Whole of Systems Approach Applied to Case Study Analysis of Genetically Modifi ed (GM) Maize Adoption in Eastern Cape Province South Africa

This article critically explores the political economy of genetically modifi ed (GM) maize adoption in South Africa, focusing on its impact on smallholder farmers using the whole-of-systems approach. While South Africa has become a leader in GM maize production, the benefi ts have been unevenly distributed, particularly disadvantaging smallholders. Government eff orts to integrate smallholders into the GM maize value chain have faced signifi cant challenges, including structural inequalities, high input costs, inadequate infrastructure, and limited access to education and resources. The article analyzes the broader political, economic, and environmental contexts, revealing how global trade policies, foreign investments, and domestic regulatory frameworks infl uence smallholder integration into the global maize value chain. A case study of the Eastern Cape province underscores the additional challenges smallholders face, such as climate change, labor shortages, and barriers to market access. Despite GM maize’s potential to improve food security and smallholder incomes, the article argues that current policies and institutional frameworks need substantial reforms to ensure equitable benefi ts. The research highlights the need for a multidimensional approach that addresses the socioeconomic, political, and environmental factors constraining smallholder participation in the GM maize sector, calling for targeted interventions to bridge the gap between large-scale commercial farms and smallholders.

Mitigating security risks in global supply chains: The role of strategic communication and criminological approaches in countering illicit trade and cyber threats

In the era of global commerce, the integrity and resilience of supply chains have become paramount. However, the increasing complexity of international supply networks has exposed them to a myriad of security risks, including both physical threats and cyberattacks. This paper explores the critical role of strategic communication and criminological approaches in mitigating security risks within global supply chains. It argues that a proactive approach to security—one that integrates effective communication strategies and criminological theories—can significantly enhance the ability of organizations to manage and mitigate these risks. Strategic communication, encompassing clear messaging, timely information sharing, and robust stakeholder engagement, is essential for maintaining transparency and preparedness in supply chain operations. Effective communication ensures that all stakeholders are informed about potential threats and the measures in place to address them, thereby facilitating a coordinated and timely response to security incidents (Fearn-Banks, 2016; Coombs, 2007). This paper examines how organizations can develop and implement comprehensive communication plans that enhance their ability to anticipate and respond to security threats. In addition, the application of criminological theories, such as routine activity theory, situational crime prevention, and deterrence theory, provides valuable frameworks for understanding and addressing security vulnerabilities in supply chains. Routine activity theory emphasizes the importance of identifying motivated offenders, suitable targets, and capable guardians, which can help organizations develop targeted security measures to reduce opportunities for criminal activities (Cohen & Felson, 1979). Situational crime prevention focuses on modifying the environment to deter crime, while deterrence theory highlights the role of penalties and enforcement in preventing criminal behavior (Clarke, 1997; Becker, 1968). This paper explores how these theories can be applied to enhance supply chain security and develop effective preventive strategies. The integration of strategic communication with criminological approaches offers a holistic framework for mitigating security risks in supply chains. By combining these strategies, organizations can improve their ability to manage security threats, safeguard their assets, and ensure the continuity of their operations. The findings of this paper underscore the importance of adopting a comprehensive approach to supply chain security that incorporates both communication and criminological insights. Keywords: Global Supply Chains, Security Risks, Strategic Communication, Criminological Approaches, Cyber Threats, Licit Trade, Routine Activity Theory, Situational Crime Prevention, Deterrence Theory, Supply Chain Security.