Value Chain Governance Research Articles

Smallholder Challenges of Social and Economic Upgrading in Agricultural Value Chains: A Cross-country, Cross-crop Comparison

This study is based on field research conducted by an international team of researchers investigating the opportunities for social upgrading of smallholder farm owners and tenants and their workers in the Global South. The main objective has been to assess the influence of crop characteristics, end markets, and value chain governance (including product and process standards), as well as national political, economic, and cultural contexts, on the conditions of farmers and farmworkers. Accordingly, the selected crops differ along the axes of domestic versus international end markets and short versus long shelf-life: coffee (cash crop), rice (staple crop), and mangoes (perishable crop). The selected countries are Bangladesh, Brazil, Colombia, Ghana, India, Pakistan, and Vietnam. Our main findings relate to the importance of collective action by key stakeholders, including smallholders and a supportive state, for economic and social upgrading.

Family firms and the governance of global value chains

The current evolution of global value chains (GVCs) calls for moving beyond the “unipolar” view of lead multinational enterprises (MNEs) as sole rulers to examine how their characteristics and those of partner firms affect GVC governance. In response to this call, we focus on family firms, which are the most ubiquitous organizational form worldwide and represent the majority of firms participating in GVCs. Unlike non-family firms, these organizations face distinct mixed gambles, driven by both economic and non-economic goals. However, internalization theory and the associated global factory model, which explain GVC governance, rely solely on economic assessments, limiting our understanding and predictability of MNE behavior. Therefore, in this study, we show how location decisions, degree of internalization, and relationship management in GVCs differ from the conventional global factory model when family firms are involved as lead MNEs and/or partners. By analyzing how comparative efficiency considerations change when family firms are involved, we offer implications for internalization theory and provide a more comprehensive framework for understanding control and trust dynamics in GVCs. Thus, we pave the way for future research to revise and enrich international business theories, taking into account the distinctiveness and heterogeneity of family firms.

How quality conventions shape the governance of the dairy value chains of Senegal

How quality conventions shape the governance of the dairy value chains of Senegal

The Influence of value chain governance on innovation performance: A study of Italian suppliers

The Influence of value chain governance on innovation performance: A study of Italian suppliers

Improving global value chain governance: Empowering women through third-party interventions within institutionally fragile contexts

Promoting women's empowerment in institutionally fragile contexts has been overlooked in global value chain (GVC) analysis, despite the recognition of its importance by UN SDG 5. Building on GVC governance and feminist institutional theories, we evaluate three aspects of an intervention led by an international non-governmental organization to empower women within socially and economically fragile environments. Using a unique dataset collected between 2018 and 2020 from 2,143 individuals in artisanal mining communities, our findings show that the intervention that promotes economic incentives and facilitates female leadership is positively related to women's inclusion and some empowerment indicators, yet its self-sustainability remains difficult within these challenging contexts.

Digital sustainability assurance governing global value chains: The case of aquaculture

AbstractSustainability risks in aquaculture are increasingly addressed through forms of assurance that rely on the use of digital technologies. By bringing in new actors and informational processes, these forms of digital sustainability assurance challenge existing notions of how global value chains are governed. Based on in‐depth interviews with experts, we find that the growing use of digital technologies to mediate assurance is shaped by the digital codification of informational processes designed to support sustainability, which in turn increases the complexity of sustainability claims and changes the capabilities needed by value chain actors to comply. Furthermore, we find that digital sustainability assurance represents a new form of value chain coordination by a new set of extra‐transactional “digital lead actors.” As these lead actors become more prominent, their control over digital data flows constitutes a new form of value chain governance with the potential to have greater impact on steering toward sustainability.

Adaptive governance and resilience of global value chains: A framework for sustaining the performance of developing-country suppliers during exogenous shocks

We draw from the composition-based view of firms to develop and test a framework of the influence of adaptive governance and resilience on the performance of a sample (n = 292) of Bangladeshi suppliers embedded in apparel global value chains (GVCs) at the height of the COVID-19 pandemic. Results confirm that adaptive governance provides the necessary conditions for suppliers to strengthen their resilience and sustain their performance during exogenous shocks. Results also show that suppliers disruption orientation and resource reconfiguration capabilities play important contingency roles on the extent to which resilience transforms adaptive governance into performance. The implications of our findings and directions for future research on GVC governance and performance in the context of exogenous shocks are fully discussed.

Global Value Chain Governance Dynamics: A Co-Evolutionary Perspective on the Transition from Relational to Modular Governance in Construction

Global value chain (GVC) governance theory explains how GVCs are controlled and organised. A large body of research examines how GVC governance varies across industries, however, GVC governance dynamics within industries receive less attention. This study bridges the gap between GVC and international business theories to focus on GVC governance heterogeneity as a source of competitive advantage. Through mixed-methods including grounded theory, structural equation modelling, and comparative case studies, the research reveals the interplay between network-orchestration and network-dependence as lead firms shape GVC governance transitions. Insights can help managers optimise complex GVC governance structures, particularly in the context of digitalisation.

Responsibility boundaries and the governance of global value chains: The interplay of efficiency, ethical, and institutional pressures in global strategy

AbstractResearch SummaryI explore the relationship of firm global strategy and global value chain (GVC) governance, within a context of expanding responsibility boundaries for unethical practices in the value chain. Specifically, focusing on the tantalum supply chain within the digital electronics GVC, I conduct a case‐based process study that contextualizes the different strategic responses of three manufacturers of tantalum capacitors when faced with similar efficiency, ethical, and institutional pressures. Integrating the GVC and global strategy literatures, I find that structural inertia in GVCs limits the efficacy of strategies that preserve, rather than alter, the governance structure, instead requiring a strategic restructuring carried out by individual firms, whose internalization of responsibility boundaries is encouraged by the institutionalization of these boundaries through public policy.Managerial SummaryUnethical practices within global value chains are increasingly becoming the responsibility of firms with no direct control over such practices, leading to growing pressures for firms to alter their global strategies to meet social and institutional demands. Research has focused on strategies that preserve the structure of the value chain, despite questions about the efficacy of these approaches. By looking at the case of “conflict minerals” within the digital electronics value chain, this study finds that inherent flaws in value chain structures, which managers can identify, require individual firms to implement strategies that change the structure of the value chain, specifically by increasing ownership and control over the linkages where unethical practices occur and encouraging public policies that add value to these strategies.

Smart Mixes for Sustainable Value Chain Management: An Evaluation of the Conflict Minerals, Palm Oil, and Green Bonds Sectors.

Fragmented governance of international value chains, operating in multiple jurisdictions, is insufficient to prevent social and environmental mismanagement. Smart Mixes, which are combinations of compulsory and voluntary measures, have been proposed as a possible means of securing environmental and social standards, but the concept has not been operationalized in the academic literature. We aim to identify the factors that have contributed to, or hindered, the performance of existing Smart Mixes in three international value chains (conflict minerals, palm oil, and bonds) using data from interviews with 32 experts, supplemented by a literature review. The results suggest that Smart Mixes are effective when they cover a specific issue under conditions in which enforcement mechanisms create a level playing field: thereby aligning public and private sector interests. The keys to success in a Smart Mix include positive interactions, harmonization, and complementary and supportive measures, which combine to motivate engagement by the private sector. We conclude that Smart Mixes can contribute to sustainability in value chains but their effectiveness is dependent on the strength of the relationships between the measures that compose them.

Enhancing household soybean processing and utilization in the Eastern Province of Zambia, a concurrent triangulation study design.

The purpose of this study was to establish best ways of improving household soybean processing and utilization in selected districts in the Eastern Province of Zambia. This was a concurrent triangulation study design, nested with a cross sectional survey and barrier analysis. Up to 1,237 households and 42 key informants participated in the quantitative and qualitative studies respectively. Quantitative data was analysed using Stata MP 15 software (StataCorp, College Station, TX, USA). NVIVO QSR10 software (QSRInt, Melbourne Australia) was used to organize qualitative data which was later analysed thematically. In this study whole soybean processing and utilization in eastern province was at 48%. However, accessibility to soybean for household consumption throughout the year was negligible (0.29%). Based on the food systems an interplay of factors influenced soybean processing and utilization. In the food environment, a ready-made Textured Soya Protein mainly imported [1,030/1237(83%)] and a milled whole soybean-maize blend AOR 816.37; 95%CI 110.83 to 6013.31 were preferred. Reports of labour intensity, hard to cook properties, coarse milling and beany flavour with associated anti-nutrients negatively influenced whole soybean utilization. In the enabling environment, soybean production AOR 4.47; 95%CI 2.82 to 7.08 increased the chances of utilization. Lack of inputs, poor access to affordable credit and lack of ingredients were deleterious to utilization. Low coverage of existing projects and poor access to technologies were other adverse factors. Among the Socioeconomic factors, a higher social hierarchy shown by owning a bed AOR 1.75; 95%CI 1.22 to 2.49, belonging to the Chewa community AOR 1.16; 95%CI 1.08 to 0 1.25, gender of household head particularly male AOR 1.94; 95%CI 1.21 to 3.13, off farm income and livestock ownership were supportive to soybean utilization. Unfavourable factors were; belonging to any of the districts under study AOR 0.76; 95%CI 0.58 to 0.98, lack of knowledge (55.65%), low involvement of the male folks AOR 0.47; 95%CI 0.30 to 0.73 and belonging to a female headed household AOR 1.94; 95%CI 1.21 to 3.13. Age, time and household size constraints as well as unreliable soybean output markets, lack of land, poor soils in some wards and poor soybean value chain governance were other negative factors. Immediately in the food environment there is need to boost milling of whole soybean while strengthening cooking demonstrations, correct processing, incorporation of soybean in the local dishes and conducting acceptability tests. In the enabling environment, there should be access to inputs, affordable credit facilities and subsidized mineral fertilisers. Post-harvest storage, collective action with full scale community involvement and ownership should be heightened. Socioeconomic approaches should target promotion of soybean processing and utilization among all ethnic groups, participation of male folks and female headed households as well as advocating for increased nutrition sensitive social protection. In the medium or long term, capacity building, market development, import substitution agreements, creation of new products, development of cottage industries, information exchange and inter district trade as well as more public-private partnerships and more local private sector players should be bolstered. Lastly farm diversification should be supported.

Analisis Implementasi Hierarchy Value Chain Samsung dalam Persaingan Smartphone Global

This article aims to examine the value chain of Samsung's smartphone business in the context of global market competition. The author will specifically focus on one aspect of value chain governance, namely the hierarchy value chain, as a strategic approach adopted by Samsung in collaboration with its suppliers. This study uses a descriptive qualitative research method by conducting literature reviews from various sources relevant to the case study being discussed. Based on the analysis conducted, the author find that Samsung decided to produce its own smartphones because they have complex product specifications, are difficult to codify, and have low supplier capabilities

Unlocking Intersectoral Integration in Kazakhstan’s Agro-Industrial Complex: Technological Innovations, Knowledge Transfer, and Value Chain Governance as Predictors

The agro-industrial complex plays a vital role in driving economic growth and sustainable development. This study investigates the direct and indirect impact of technological innovations, knowledge transfer, and value chain governance on intersectoral integration through the mediatory role of innovation diffusion and the moderating role of the regulatory environment. This study adopts a time-lagged quantitative survey research design, utilizing a multistage random sampling technique to collect data from employees within the agro-industrial complex in Kazakhstan. The findings reveal that technological innovations, knowledge transfer, and value chain governance positively influence intersectoral integration within the agro-industrial complex. Furthermore, innovation diffusion mediates the relationship between these variables, indicating that the diffusion of innovative practices, technologies, and ideas plays a crucial role in facilitating intersectoral integration. This study also demonstrates that the regulatory environment moderates the relationship between innovation diffusion and intersectoral integration, highlighting the importance of supportive regulatory frameworks in facilitating collaboration and innovation diffusion. The results contribute to the theoretical understanding of intersectoral integration and provide practical implications for policymakers, industry stakeholders, and managers.

The Value Chain Governance of Robusta Coffee in Bogor Regency

The Value Chain Governance of Robusta Coffee in Bogor Regency

Intellectual property strategy and the governance of technological platform-driven global value chains: The case of Qualcomm

This study investigates the impact of intellectual property (IP) strategy on the governance of technological platform-driven global value chains (GVCs) using a case study of the collaboration between Qualcomm and Chinese smartphone manufacturers. Our findings are twofold. First, even when IP protection is inadequate or technological capabilities of IP users are weak, a well-designed IP strategy can allow a technological platform vendor (Qualcomm) to transfer knowledge to users in developing countries while still protecting their own IPs. Second, by reducing the platform and value chain’s modularity, a good IP strategy can encourage platform vendors to offer more innovation and learning opportunities along GVCs. We show there can be a significant mutual reinforcement mechanism included in an IP strategy that supports the co-evolution of platform vendors and a few selected users (OPPO, VIVO, and Xiaomi) with great potential for learning and innovation in GVCs.

Towards a sustainable agri-food ecosystem: the case study of South Korean public food procurement

PurposePublic food procurement (PFP) plays an important role in establishing agri-food systems. The study explores local food system stakeholders' response to PFP interventions by addressing the question of how PFP transforms agri-food systems and how this new agri-food ecosystem is governed.Design/methodology/approachThis article presents and discusses a unique case study of Jeonbuk, a rural province in South Korea, which successfully transformed its agri-food system into an ecosystem through its sustainability-oriented innovations (SOIs) among born ecopreneur farmers. This case not only offers insights into a novel way to create value chains through legislative, executive and judicial governance but also extends the body of knowledge on agri-food systems by introducing the concept of an agri-food ecosystem.FindingsThe findings indicate the importance of the ecosystem governance and knowledge exchange among internal and external ecosystem stakeholders. In particular, PFP institutions play a crucial role in facilitating the operation of public meal centers and cooperation among actors.Practical implicationsTaking an ecosystem lens to agri-food systems may offer agricultural cooperatives a wider perspective and better understanding of the governance structures necessary to successfully execute public interventions. Lastly, the Korean case differs from other developing countries, but its role model qualities could help to implement successful school meal programs elsewhere.Originality/valueThis paper reviewed and applied a conceptual framework aimed at identifying the role of PFP institutions in the value chain governance by studying a case study of a South Korean local school meal program. The study further extends the agricultural cooperatives research and contributes to a better understanding of the role of a municipality and an agri-food intermediary in the governance process involving producers and kitchens.

Retracted: Global Value Chain Governance of the Apparel Design Industry under the Background of Global Sustainable Economic Development.

[This retracts the article DOI: 10.1155/2022/5178301.].

The Governance of Big Data and Artificial Intelligence in Network Industries

An important precondition for the development of artificial intelligence (AI) in network industries is the access to big data and the attendant necessities of data sharing and data portability. The goal of this paper is to analyze the changing needs of entrepreneurial decision-making to exhaust the innovation potential of AI-driven big data value chains taking into account AI-specific ethical, security and privacy regulations. The analytical concept of AI-powered big data virtual networks is investigated with a focus on the governance of 5G-based big data value chains required for Internet of Things (IoT) applications in particular smart networks. Although several actors may be involved—such as broadband providers, cloud service providers, geopositioning service providers, or sensor network service providers—the final responsibility for bundling these different service components lies in the hands of the AI-powered big data virtual network providers. In addition to the required data privacy and security regulations, the exploration of new liability rules for AI interacting with traditional technologies is becoming relevant, taking into account AI-specific ethical and transparency obligations. Firstly, the complementary roles of the EU data regulatory framework and European AI regulatory framework are examined. Secondly, the network economic concept of AI-powered big data virtual networks is elaborated taking into account the required regulations. Thirdly, the heterogeneity of AI systems—required for a variety of IoT applications—is considered, with a particular focus on the application of AI within the transportation sector.

Letter from the Editor: More Geopolitics, Global Value Chains, Mature MNE Subsidiaries and an Interview with Deepak Ohri

Further recognizing the high uncertainty and volatility faced by multinational corporations (MNCs) in the current geopolitical environment, this AIB Insights issue continues our prior issue’s theme with three geopolitics-focused articles on stay or exit decisions in geopolitical crises, geopolitical resilience, and managing disengagement during political disruptions. It also contains articles on building inclusive governance of global value chains and mature subsidiaries in emerging markets, along with an interview with lebua Hotels & Resorts CEO Deepak Ohri. A brief update on the journal’s progress is also provided.

The Quest for Regionalization of Global Value Chains in a Pandemic Global Business Environment

Covid - 19 has affected global value chains (GVCs) and firms’ behaviours within GVCs to a large extent. Firms need to find flexible solutions to stabilize production and rethink value chain governance and supplier relationships. Thus, GVCs recover from the initial shock, and the GVCs reconfiguration becomes essential for managers. We reviewed recent literature focusing on the GVCs, the role of governance and Covid – 19 effects on it as well as the regionalization trend. Thus, this study aims to give empirical evidence on the reconfiguration of GVCs, particularly the changes in the structure of suppliers in the global apparel industry, by using the Bloomberg Supply Chain Analysis tool in the period of 2017-2021. We analysed the structural changes in selected leading apparel multinational companies’ GVCs - Industria de Diseno Textil, S.A. (Inditex), Hennes &Mauritz AB (H & M) and adidas AG. The findings provide insights on the current state of the theoretically discussed and widely expected regionalization trend in GVCs. The study concludes that two out of three cases provide evidence indicating an ongoing trend toward GVCs regionalization. The contribution of this study consists of empirical evidence of the changes in GVCs supplier structure in the apparel industry in response to pandemic global business environment. Practical implications and recommendations for businesses and policy makers are related to the revealed theories and testable models by using Bloomberg’s Supply Chain Analysis data and linking causes and effects of the GVCs regionalization processes.