Global Value Chains Research Articles

The potential footprint of alternative meat adoption on corn and soybean producers

Alternative meat (AltMeat), which includes plant-based and cultured meats, has the potential to improve the global food supply chain on numerous environmental and societal dimensions. Some of these gains, derived from lower animal meat consumption, could disrupt the supply chain of crops that are used as animal feed. This study evaluates the potential impact of animal meat displacement on major corn and soybean-producing regions, globally or in developed regions. We combine trading patterns and regional cost structures with potential crop demand reductions caused by animal meat displacement, to occur by 2032 on top of an Organisation for Economic Co-operation and Development and the Food and Agriculture Organization of the United Nations (OECD-FAO) baseline projection without AltMeat. We find that potential animal meat displacement in the US and the European Union (EU) would have a minor effect on crop markets. Worldwide displacement, however, would lead to significantly lower corn and soybean prices relative to the baseline OECD-FAO projection without AltMeat. We explore quantitatively the heterogeneous impact of such developments in crop-producing regions. Our findings shed light on a trade-off associated with the significant benefits of more sustainable meat production.

Research on the Storage Process Management System Based on RFID

With the continuous development and complexity of the global supply chain, warehouse automation and intelligent technology have become the key means to improve the efficiency and accuracy. The application of radio frequency identification (RFID) in storage process management is discussed, Use RFID technology to manage the storage process, pretreatment the goods, and improve the overall logistics speed. At the same time, the visualization technology is used to monitor the status of the goods, The full state of cargo preprocessing to the end of the task is visible.

Friendshoring: how geopolitical tensions affect foreign sourcing, supply base complexity, and sub-tier supplier sharing

PurposeThis paper examines the influence of geopolitical tensions—operationalized as political divergence between governments—on firms’ foreign supply bases and the resulting effects on supply base complexity and sub-tier supplier sharing.Design/methodology/approachThe authors conduct panel data regression analyses over the period 2003–2019 to investigate whether political divergence affects foreign supply bases for 2,858 US firms sourcing from 99 countries and to examine how political divergence exposure impacts the supply network structures of 853 US firms.FindingsFirms reduce their supply bases in countries exposed to heightened geopolitical tensions. These supply chain adjustments are associated with increased supply base complexity and greater sub-tier supplier sharing.Originality/valueThis study highlights the importance of state relations in global supply chain reconfiguration. Political divergence between governments provides a dual-view of political risk (i.e. buyer–supplier countries), which can help firms anticipate geopolitical disruptions. While reducing supply bases in foreign countries facing heightened geopolitical tensions is intended to mitigate disruptions, these supply base adjustments are linked to increased supply base complexity and sub-tier supplier sharing, thereby exposing firms to other types of supply disruptions. Additionally, this research contributes to understanding the effects of geopolitical tensions on supply base complexity through the lenses of transaction cost economics and resource dependence theory.

Corporate Sustainability Reporting: Shifting From Optional Due Diligence to Mandatory Duty

ABSTRACTThis paper offers a critical overview of the newly proposed Corporate Sustainability Reporting Due Diligence Directive by the European Commission. The aim is to uncover potential opportunities, challenges, gaps, and contradictions, within the directive. We provide insights on how companies can effectively navigate through these issues and leverage upon the directive for more environmentally friendly and ethically sound operations within the global value chain. Ultimately, our aim is to offer researchers, managers, and policymakers a viewpoint on the potential impacts of the new directive on organizations and provide future research directions around responsible corporate conduct across global value chains.

Public health emergencies and international trade in the context of global value chains: Evidence from COVID‐19 in China

AbstractIn recent years, there has been a notable increase in the frequency of public health emergencies (PHE), which pose a substantial threat to the global supply and demand equilibrium as well as the stability of the global value chains (GVC). The article takes the example of the COVID‐19 pandemic and utilises China's foreign trade monthly data spanning from 2018 to 2021 for an empirical analysis of how COVID‐19 affected China's import and export trade, as well as its participation in GVC collaborations. The findings are as follows: (1) The proliferation of COVID‐19 significantly and negatively impacted China's export trade, while its impact on China's import trade was insignificant. (2) The impact of the COVID‐19 on processing trade exports was more pronounced compared to general trade exports, highlighting the detrimental effect of the pandemic on GVC collaboration. (3) The adverse influence of the COVID‐19 on China's foreign trade and GVC cooperation primarily stemmed from its impact on international effective demand. (4) The pandemic exerted a more substantial negative effect on processing trade involving supplied materials with low production value added compared to processing trade involving imported materials with high value added. And it had a greater adverse impact on low‐tech products as opposed to high‐tech products, indicating that industries with higher value‐added and high‐tech products exhibited greater resilience in the face of trade disruptions by COVID‐19.

Cross-Pacific Vessel Estimated Time of Arrival and Next Destination Prediction with Automatic Identification System Data

With the increase in global trade uncertainty and supply chain disruptions, accurately predicting the estimated time of arrival (ETA) of container vessels can effectively help carriers, terminals, and freight forwarders improve operational efficiency. The Asia-North America route has been recently under stress because of strikes and trade wars between the U.S. and China. Voyages are subject to multiple external factors leading to uncertainty in arrival times. This is especially true for cross-Pacific voyages, where long distances without intermediate port visits allow for a large feasible set of trajectories and vessel speed profiles. Large errors in ETA prediction not only hinder the effective planning and execution of other stakeholders but also lead to significant fluctuations in the types and quantities of goods arriving at the port, thereby hindering port competitiveness and efficient multimodal transportation. Existing literature focuses on estimating ETA and next positions for dense, compact areas at the vicinity of ports. We propose and evaluate model framework based on artificial neural networks (ANN) fed by automatic identification system (AIS) historical data to predict the next destination and ETA for cross-Pacific routes for cases where ETA from the captain is missing in the AIS data. Results show our model can effectively predict next destination and ETA of vessels, achieving a mean absolute error value of 4 h when the vessel is 1,500 nmi away from the port. For comparison, the ANN submodules are replaced with gradient boosted trees, providing similar results. We terminate by highlighting the challenges found to improve the model.

Enhancing customer satisfaction through IIoT-Enabled coopetition: Strategic insights and impacts

This research investigates the significant role of Industrial Internet of Things (IIoT) to enable Coopetition Network Practices (CNPs) in enhancing the performance of Small and Medium Enterprises (SMEs) within the context of global digital supply chains. Employing a quantitative approach, our study reveals that CNPs contribute to a noTable 51.0 % improvement in factors determining customer satisfaction. This underscores the strategic importance of blending competition with collaboration to refine production processes and align with consumer expectations. Additionally, the research presents a remarkable 69.1 % boost in operational consistency and reports substantial progress in manufacturing flexibility and the value-to-weight ratio, witnessing increases of 125.8 % and 33.2 %, respectively. These improvements are pivotal in optimizing production resources, which in turn, have led to a 29.3 % decrease in customer complaints and a 15.6 % rise in on-time delivery rates. Conversely, a slight decline in the consistency of the value-to-weight ratio was observed, pointing to potential areas for future research. The findings decisively show that CNPs offer concrete advantages by enhancing customer satisfaction determinants and operational efficiency in SMEs. The paper advocates for future studies to directly measure customer satisfaction and to formulate actionable guidelines for the effective implementation of coopetition strategies. This proposed research direction aims to provide solutions to the manufacturing sector's emerging challenges, thereby promoting competitive advantage and growth in the digital era.

The Rise of Green Trade Policy and Its Impact on the International Market

With the increasing severity of global environmental issues, governments and international organizations are gradually recognizing the key role of green trade policies in promoting environmental sustainability. Green trade policies aim to facilitate a green transition in global trade through the formulation and implementation of environmental protection measures. These policies include carbon pricing mechanisms, green tariffs, environmental subsidies, and international coordination of environmental standards. This paper systematically analyzes the definition and development of green trade policies and explores their impact on the international market. The main content covers the reshaping of international trade flows and patterns, changes in global competitive dynamics, and the optimization and adjustment of global supply chains. The study reveals that green trade policies not only drive increased demand for eco-friendly products and technologies in the international market but also reshape global competitive dynamics and promote the greening and smart transformation of global supply chains. In the future, with the further refinement of green trade policies and strengthened international cooperation, the global economy is expected to achieve more sustainable development.

Distinct clubs or one big party? Global value chain convergence: Supply concentration and susceptibility to supply shocks

Research background: Recent events, such as the COVID-19 pandemic or Russia’s aggression on Ukraine, raise important questions about the stability of supply chains and their resilience to supply shocks. Purpose of the article: This paper investigates convergence clubs in global value chains, focusing on supply concentration measured with the Herfindahl-Hirschman Index. Methods: Using country-sector pairs from the OECD’s ICIO database, we employed the Phillips-Sul (2007) algorithm with the Schnurbus-Haupt-Meier (2017) augmentation to distinguish convergence clubs in the global trade network. Findings & value added: Our main policy-related finding is that there are two main convergence clubs — one covering roughly 80% of all units and the other one close to 20% (the number of divergent sectors is practically negligible). The dominant club is characterised by high and growing concentration, which poses a risk to the trade network, as, over time, it makes trading partners more susceptible to supply-side shocks. Since the global economy has proven to be surprisingly homogenous in terms of concentration patterns, it seems justified that growing concentration could be considered a systemic feature for future theoretical international trade models. Our main methodological finding is that the WIOD database, which is still used as a standard for such analyses, may be misleading due to its limitations. While the results based on the ICIO and WIOD databases do not align, ICIO seems to be superior in terms of coverage.

Global value and wealth chains in contemporary capitalism: Editorial introduction

This introduction to a special section on global value chains and global wealth chains elaborates on the concept of entanglement as a way to understand dynamics of value capture, accumulation and inequality in contemporary capitalism. The authors first review the analytical framework they have proposed for analyzing entangled chains based on two dimensions: 1) the relative importance of intangible versus tangible assets; and (2) the primary strategy of lead firms – specifically, whether that strategy is oriented towards value creation or wealth accumulation activities. They then briefly discuss the four papers comprising this special section which collectively advance our knowledge of how production and finance are imbricated in the global political economy.

Logistics project risk response decision-making for global supply chain resilience and agility: an optimised case-based reasoning

ABSTRACT Logistics projects are critical to the functioning of the global supply chains (GSC), encountering various disruptions and risks. Sound Risk Response Decisions (RRDs) on logistics projects are imperative to ensure the GSC’s resilience and agility. Besides risk correlations, Project Interdependencies (PIs) and Limited Historical Information (LHI) impede RRDs. To address these challenges, an optimised Case-Based Reasoning combining the Decision-Making Trial and Evaluation Laboratory (DEMATEL) and Stratified Ordinal Priority Approach (SOPA) is proposed. Risks are categorised as referable and non-referable based on LHI using the Jaccard similarity. The strategies for referable risks are derived from similar cases retrieved through the weights of risks and project attributes and three similarities considering PIs. SOPA is developed to find weights with the Interdependent Uncertain Events (IUEs). DEMATEL is employed to access risk centrality degree similarity considering PIs and risk correlations. Expert input is sought for non-referable risk strategies. An optimisation model incorporating secondary risk correlations is built to generate strategies for all risks. The proposed approach is validated through a numerical example. Analysis informs that (1) PIs, LHI, and IUEs are necessary for sound RRDs; (2) decision outcomes are sensitive to logistics project managers who are risk-averse or exhibit moderate consideration of secondary risks.

Adaptation in Global Semiconductor Supply Chains: Insights from the COVID-19 Pandemic and Strategic Responses

Abstract—This study examines the global semiconductor supply chain disruptions triggered by the COVID-19 pandemic, particularly focusing on their impact on the automotive and electronics industries. The research highlights that these disruptions were exacerbated by systemic vulnerabilities such as just-in-time manufacturing, geopolitical tensions, and reliance on complex global interdependencies. Through case studies of companies like Tesla and Hyundai, the study demonstrates the critical role of adaptability and supply chain resilience in mitigating the effects of semiconductor shortages. Firms that diversified suppliers or employed technological innovations, like software adjustments, were better equipped to manage the crisis. Additionally, the study underscores the importance of international cooperation, government intervention, and technological advancements in forecasting and supply chain management to build more resilient systems. The research identifies significant gaps in understanding the long-term resilience of semiconductor supply chains, calling for sustainable, scalable solutions to manage future disruptions. Keywords— Semiconductor shortages, global supply chain disruptions, automotive and electronics industries, resilience, geopolitical tensions, technological innovation, government policy, circular economy principles, AI, and machine learning in supply chains.

Assessment of the Current Situation and Solutions to Attract Australian FDI Capital to Vietnam in the Context of International Integration

Foreign Direct Investment (FDI) has played a pivotal role in Vietnam’s economic transformation, significantly contributing to industrialization, job creation, and export growth. Since the introduction of the Law on Foreign Investment in 1987 and Vietnam’s accession to the World Trade Organization (WTO) in 2007, the country has emerged as a leading destination for foreign investors in Southeast Asia. Key sectors attracting FDI include manufacturing, real estate, and services, which have driven economic development and facilitated Vietnam’s integration into the global economy. Despite these successes, challenges remain that hinder FDI’s full potential, including administrative inefficiencies, complex regulations, corruption, and inadequate infrastructure. The shortage of highly skilled labor, especially in technology-driven fields, also limits the country's ability to attract higher-value FDI projects. Moreover, there are regional disparities in FDI distribution, with major urban centers like Ho Chi Minh City and Hanoi receiving most investments, while rural areas are often overlooked. The impact of new-generation Free Trade Agreements (FTAs), such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), is also examined. These agreements enhance market access, legal protections for investors, and reduce trade barriers, making Vietnam increasingly attractive for high-tech and service industries. This paper assesses the current FDI landscape in Vietnam, identifying opportunities and challenges for foreign investors. Recommendations include simplifying business procedures, implementing anti-corruption measures, improving infrastructure, and enhancing workforce training to address skills gaps. By adopting these reforms, Vietnam can attract higher-quality investments, strengthen ties with global supply chains, and foster sustainable economic growth. Additionally, the research emphasizes the importance of building stronger partnerships between FDI enterprises and local firms to ensure the widespread distribution of investment benefits across the economy. With a more favorable investment climate, Vietnam can reinforce its position as a premier destination for global investors and enhance its role in the international market.

Supply Chain Management for Electric Vehicles: Challenges, Opportunities, and the Path to Scalability

Abstract—As electric vehicles (EVs) gain momentum as a solution to reduce greenhouse gas emissions and fossil fuel dependence, their supply chains become increasingly complex, particularly for lithium-ion batteries (LIBs), which are crucial for EV performance, safety, and longevity. This paper reviews existing literature on several key aspects of the EV supply chain, focusing on thermal management systems (TMS), lifecycle environmental assessments, closed- loop supply chains (CLSCs), and the impacts of global disruptions like the COVID-19 pandemic. Research by Murugan et al. (2022) underscores the importance of improving TMS for LIBs, noting that experimental validation remains sparse despite advances in numerical modeling. In addition, Rüdisüli et al. (2022) highlight the environmental benefits and limitations of different mobility technologies, emphasizing the need for advancements in seasonal energy storage systems. Gu et al. (2018) discuss the challenges of establishing profitable CLSCs for EV batteries, where reuse improves sustainability, but recycling faces economic hurdles. Finally, the analysis of Wen et al. (2021) on the COVID-19 pandemic’s impact shows significant disruptions to the Chinese EV market and raises concerns about the global EV supply chain’s resilience. This review identifies gaps in the literature, such as the need for real-world validation of models, exploration of alternative battery chemistries, and improved supply chain governance, all of which are essential for advancing the EV industry toward sustainability. Keywords—Electric Vehicles, Supply Chain Management, Lithium-ion Batteries, Thermal Management Systems, Closed-Loop Supply Chains, Sustainability, Greenhouse Gas Emissions, Lifecycle Assessment, Resource Dependencies, Circular Economy.

Changes in global trade patterns increase global inequality towards Sustainable Development Goals

Reaching the UN's sustainable development goals (SDGs) is influenced by a country's position in global value chains and its involvement in international trade. Here, we assess how changes in global trade patterns (CGTP) during 2004 and 2014 impacted 13 SDG indicators in 141 countries/regions which are further divided into four income groups. Trade pattern is characterized by the direction, composition, and magnitude of trade, indicating an economy imports what types (composition) and magnitudes of goods or services from where (direction). We find that CGTP aggravated socioeconomic and environmental inequality between countries in two ways: 1) the amount of indicators that significantly worsened due to CGTP decreased from 8 indicators (2004–2007) to 1 (2011–2014) for high-income and upper-middle-income countries, but increased from 5 to 14 for lower-middle-income and low-income countries; 2) CGTP led to a coupling of value added with most natural resource consumption and environmental pollution indicators for low-income countries, while they strengthened decoupling or reducing coupling for other countries. The findings imply one key to achieving SDGs is to address the inequality between rich and poor countries through implementing policy interventions that influence import and vertical supply chain thereby shifting the trade patterns towards environmental-economic decoupling in poor countries.

Protecting the environment at home or abroad?

Abstract By importing goods whose production affects the environment abroad, wealthy countries are ”offshoring” a large share of their total environmental footprint of consumption to less affluent societies. We argue that current efforts to mitigate this problem, which focus largely on informational policy instruments for global supply chains, could result in unintended side effects. The reason pertains to a potential tradeoff between a home bias in consumption and the geographic allocation of environmental impacts. We develop a theoretical argument on how consumers may respond when they prefer a domestically produced good but are made aware that this results in more environmental damage at home, compared to importing the same product from abroad. Based on choice experiments in Germany, Japan, and the United States, we observe that information provision can reduce consumer demand for environmentally harmful products, but also find some support for environmental NIMBYism when environmental and provenance information are combined. The key implication of this finding is that policymakers should address potentially unintended side-effects of more stringent informational requirements for global supply chains.

Optimizing Supply Chain Transparency and Customer Compatibility with AI-Driven Models

As global supply chains become increasingly complex, the adoption of artificial intelligence (AI) technologies has emerged as a critical strategy for enhancing operational transparency and improving customer compatibility. This study investigates the application of AI-driven models in optimizing supply chain performance, focusing on predictive analytics, real-time data integration, and customer-centric personalization. A comprehensive experimental framework was employed, evaluating five distinct AI configurations against four key performance criteria: operational transparency, customer compatibility, cost efficiency, and delivery performance. Results demonstrated that the Real-Time Data Integration Model achieved a 20% improvement in operational transparency, allowing for enhanced visibility into inventory management and more agile responses to dynamic demand fluctuations. Additionally, the Customer-Centric Personalization Model increased customer satisfaction by 10%, emphasizing the critical role of tailored service delivery in modern supply chain management. The Cost Optimization Model yielded significant cost reductions, improving cost efficiency by 18%, though it showed a marginal decrease in customer compatibility. The findings highlight the trade-offs between cost efficiency and customer-centric strategies, suggesting that a balance is required to achieve a well-rounded and sustainable supply chain model. This research underscores the transformative potential of AI in driving efficiency, transparency, and customer satisfaction. Future work should explore the integration of advanced technologies such as 5G and further investigate scalable AI solutions capable of addressing the evolving challenges faced by global supply chains.

Integration of Indian inventor networks in global value chains in pharmaceuticals industry

ABSTRACT The network approach of value chain analysis examines the role and centrality of various actors and their interrelationships with other actors, besides establishing the role of external linkages in this process. This paper tries to combine the effect of research networks on the geographic dispersion of innovative activity in the Indian pharmaceutical industry. We use activity-wise data from USPTO's patents to establish the level of integration of Indian innovative firms in the pharmaceutical global value chain. Using Tobit analysis, we examine the nature of the collaborative pattern of firms and establish whether this pattern of the inventor network level translates to integration into global networks in terms of geographic dispersion. We analyse the geographic dispersion of inventor networks as a function of the characteristics of the innovative actors that coordinate their inventive work. We show the level of integration of Indian innovative firms in the pharmaceuticals global value chain and assess the structure of these research networks. This helped contextualize firms' roles by contrasting them with other institutional types. The level of integration of Indian firms is low in terms of the geographic dispersal of innovation networks, while the private universities and public research centres are more geographically dispersed.

Trade facilitation, market size, and supply chain efficiency of Taiwan semiconductor companies.

In an environment marked by global economic volatility and geopolitical uncertainties, the stability of Taiwan's supply chain takes on heightened importance, particularly given Taiwan's crucial role in the global semiconductor supply chain. In recent years, semiconductor companies in Taiwan have faced increasing inventory pressures, which will reduce their competitiveness and increase operational costs over the long term. Although previous studies have explored the influence of trade facilitation on macroeconomic and trade efficiencies, its specific impacts on the semiconductor industry have been less frequently addressed. This study integrates corporate inventory, trade facilitation, and geopolitical factors within a unified analytical framework to construct a model that explores mediating and moderating effects. This study conducted regression analysis on data from 52 Taiwan-listed integrated circuit companies from 2014 to 2022. Contrary to traditional findings that trade facilitation decreases inventory in other industries, it predominantly fosters inventory accumulation within Taiwan's semiconductor sector by expanding market size, thereby affecting supply chain efficiency. Moreover, geopolitical factors were found to intensify the effects of trade facilitation on corporate inventory. Elevated geopolitical risks lead to greater inventory accumulation, which ultimately threatens long-term competitiveness and diminishes the semiconductor industry's advantage in Taiwan, further influencing supply chain efficiency. Consequently, this study recommends that to more accurately forecast market size, semiconductor companies in Taiwan are encouraged to expand their manufacturing investments in Chinese mainland. Additionally, the prudent handling of cross-strait relations by the Taiwan authorities is an important strategy to mitigate geopolitical risks affecting the semiconductor supply chain.

Optimizing pharmaceutical inventory management: A global framework for efficiency and cost reduction

Pharmaceutical inventory management is critical in ensuring continuous drug availability and cost efficiency in healthcare institutions globally. However, maintaining optimal inventory levels is challenging due to factors such as overstocking, stockouts, and global supply chain disruptions. This paper reviews best practices for efficient pharmaceutical inventory management, emphasizing the integration of data analytics and predictive models to forecast demand, reduce waste, and streamline procurement. It explores strategies for implementing unified inventory systems across diverse healthcare settings, balancing cost efficiency with uninterrupted drug availability. Additionally, the paper examines the impact of global supply chain disruptions on pharmaceutical supply and recommends solutions for building resilience. Through real-world examples and recommendations for future improvements, this review highlights the potential for enhanced global inventory management practices to reduce costs while ensuring the continuous availability of essential medications. Keywords: Pharmaceutical Inventory Management, Data Analytics, Cost Efficiency, Predictive Models, Supply Chain Resilience, Drug Availability