Value Chain Perspective Research Articles

The factors affecting the development of medicinal plants from a value chain perspective.

From a value chain perspective, this paper examines the important factors from the selection of planting areas to storage, which restrict the development of medicinal plants. The purpose of this paper is to provide theoretical basis for the sustainable development of medicinal plants. Medicinal plants have significant economic and medicinal value. Due to the gradual depletion of wild medicinal plant resources, cultivators of medicinal plants must resort to artificial cultivation to cope. However, there are still many problems in the production process of medicinal plants, resulting in decreases in both yield and quality, thus hindering sustainable development. To date, research on the value chain of medicinal plants is still limited. Therefore, this paper analyzes the factors affecting the development of medicinal plants from the perspective of the value chain, including the selection of growing areas to the storage process of medicinal plants, and summarizes the challenges faced in the production process of medicinal plants. The purpose of this paper is to provide theoretical basis for the sustainable development of medicinal plants.

Unlocking Circular Solutions: Exploring Multilayer Packaging in Sustainable Waste Management Through Material Flow Analysis and Stakeholder Perspectives ‐ Insights From Denmark

Multilayer packaging (MLP) in post-consumer waste is challenging to sort and process for recycling. It is often composed of a complex mixture of different materials that become contaminated which calls for a solution. Rules on extended producer responsibility for packaging will be enforced by 2025 across the EU. Considering the present situation, the questions arisen are the concerns how solutions to MLP may be built by adopting a more holistic, collaborative approach to creating circular interventions. This study aims to develop a solutions-building methodology for MLP from a value chain perspective and to devise an intervention plan for involved actors. To understand the packaging materials (and packaging waste) imported to, produced on, consumed, and exported from the Danish Island of Bornholm, a material flow analysis (MFA) was performed. This data-driven method uncovered hotspots and where interventions would have the highest impact. Additionally, it was used as a visualization tool at a multi-stakeholder workshop involving value chain actors to discuss future interventions. Results from the workshop showed the widely held perception that MLP separation and recycling is an appropriate 'near future' solution, as keeping the current operations and paying a third party to take care of the waste was the easier option for the producers. A radical innovation would have involved pushing boundaries, challenging conventional thinking, and pursuing ground-breaking ideas that could lead to substantial leaps from a circular perspective. From a methodological perspective, the MFA proved a vital tool for communicating the scale of packaging waste and facilitating discussions on potential interventions. MFA integrating with the results of multistakeholder workshop can lead to knowledge sharing and capacity sharing for stakeholders but cannot, in and of itself, lead to substantial leaps, i.e. radical innovation.

Evolution of trade and productive integration in Latin America, 1995–2015: an input-output analysis

PurposeThe main goal of this paper is to examine the evolution of Latin American productive integration in terms of the regional value added incorporated in intra-regional exports of Argentina, Brazil, Chile, Colombia, Mexico and Peru. In addition, the study traces the trade and productive integration trajectories for each of these countries from 1995 to 2015.Design/methodology/approachBased on the use of OECD’s global ICIO input-output tables, this paper applies the methodological framework by Wang et al. (2018) for the analysis of trade flows at the bilateral level, which allows breaking down the value of gross exports of each sector-country, depending on the origin of the value added contained in exports, as well as their use.FindingsThe estimates show very low shares of value added from regional partners in the intra-regional exports of the countries studied. Conversely, the weight of the value added incorporated in these exports by countries outside the region has increased in tandem with China’s expanding involvement in Latin America. This development, along with the downward trend in domestic value added incorporated in exports, indicates a lack of a regional integration process of any depth.Originality/valueThis article addresses an economic problem of conventional importance from a global value chain perspective using a novel methodology based on the use of global input–output tables.

Exploring Cooperative Mechanisms in the Chinese Agricultural Value Chain: A Game Model Analysis Based on Leading Enterprises and Small Farmers

In the context of agricultural modernization in China, this paper examines the micro-level perspective of agricultural value chains. Drawing from three primary models of agricultural value chain cooperation—namely, “leading enterprises + small farmers”, “leading enterprises + cooperatives + small farmers”, and “corporate integration”—it establishes four game models: the decentralized decision-making game model, the two revenue-sharing game models, and the centralized decision-making game model. It systematically analyzes the cooperation mechanisms between leading enterprises and small farmers in upstream production links of the agricultural value chain, aiming to improve the cooperation strategy between leading enterprises and small farmers, elevate the status of small farmers in the agricultural value chain, promote increased income for farmers, and strengthen the agricultural value chain. The research findings are as follows: Firstly, the traditional contract of “leading enterprise + smallholder farmers” is incomplete, which makes it difficult to avoid opportunism and moral hazard that may arise between the two parties. By comparing multiple parameter values, it is found that this model is at a lower level of agricultural value chain development. Secondly, the model of “leading enterprise + cooperative + smallholder farmers” improves the tightness and stability of cooperation between leading enterprises and smallholder farmers. This model explains to some extent the operability of smallholder farmers sharing the value of the agricultural value chain. Compared with various parameter values, this model is at a medium level between other models. Finally, the “corporate integration” model is a fully vertical integration model. Compared with various parameter values, this model is at an advanced stage of agricultural value chain development. Therefore, agricultural value chains will ultimately develop toward the direction of corporate integration. This study has positive practical significance for enhancing the status and claim rights of small farmers, promoting increased income for farmers, enhancing the consistency of values between leading enterprises and small farmers, strengthening the stability of the agricultural value chain, and ultimately achieving common prosperity and agricultural modernization in China.

Embodied Carbon Transfer in China’s Bilateral Trade with Belt and Road Countries from the Perspective of Global Value Chains

In the context of global value chains (GVCs), the impact of the Belt and Road Initiative (BRI) on China’s bilateral trade with Belt and Road countries (BRCs) is controversial. This study constructed a GVC accounting framework based on a multiregional input–output model, aiming to clarify the trends and transfer characteristics of the value added (VA) and the embodied carbon emissions (ECEs) in China–BRCs bilateral trade from 2000 to 2018 at the overall country, Belt and Road region (BRR), and typical country levels. The relevant results are threefold. (1) At the overall country level, the BRCs VA and ECEs imports and exports have shown overall increasing trends. (2) Most BRRs are net ECE exporters to China. Southeast Asia and Northeast Asia are the main ECEs destinations and sources. (3) In China–typical BRCs bilateral trade, China is a net ECEs exporter to most typical BRCs, and the net ECE transfers through route 1 (onefold value chain) are all positive, implying that route 1 can reduce ECEs in BRCs. These findings can help formulate policies and measures to reduce carbon emissions and provide a scientific basis for realizing the coordinated development of carbon emission reduction and economy in China and BRCs.

Digital technologies and corporate green innovation: opening the “black box” of resource orchestration mechanisms

PurposeDriven by the dual-carbon target and the widespread digital transformation, leveraging digital technology (DT) to facilitate sustainable, green and high-quality development in heavy-polluting industries has emerged as a pivotal and timely research focus. However, existing studies diverge in their perspectives on whether DT’s impact on green innovation is synergistic or leads to a crowding-out effect. In pursuit of optimizing the synergy between DT and green innovation, this paper aims to investigate the mechanisms that can be harnessed to render DT a more constructive force in advancing green innovation.Design/methodology/approachDrawing from the theoretical framework of resource orchestration, the authors offer a comprehensive elucidation of how DT intricately influences the green innovation efficiency of enterprises. Given the intricate interplay within the synergistic relationship between DT and green innovation, the authors use the fuzzy-set qualitative comparative analysis method to explore diverse configurations of antecedent conditions leading to optimal solutions. This approach transcends conventional linear thinking to provide a more nuanced understanding of the complex dynamics involved.FindingsThe findings reveal that antecedent configurations fostering high green innovation efficiency actually differ across various stages. First, there are three distinct configuration patterns that can enhance the green technology research and development (R&D) efficiency of enterprises, namely, digitally driven resource integration (RI), digitally driven resource synergy (RSy) and high resource orchestration capability. Then, the authors also identify three configuration patterns that can bolster the high green achievement transfer efficiency of enterprises, including a digitally optimized resource portfolio, digitally driven RSy and efficient RI. The findings not only contribute to advancing the resource orchestration theory in the digital ecosystem but also provide empirical evidence and practical insights to support the sustainable development of green innovation.Practical implicationsThe findings can offer valuable insights for enterprise managers, providing decision-making guidance on effectively harnessing the innovation-driven value of internal and external resources through resource restructuring, bundling and leveraging, whether with or without the support of DT.Social implicationsThe research findings contribute to heavy-polluting enterprises addressing the paradoxical tensions between digital transformation and resource constraints under environmental regulatory pressures. It aims to facilitate the simultaneous achievement of environmental and commercial success by enhancing their green innovation capabilities, ultimately leading to sustainability across profit and the environment.Originality/valueCompared with previous literature, this research introduces a distinctive theoretical perspective, the resource orchestration view, to shed light on the paradoxical relationship on resource-occupancy between DT application and green innovation. It unveils the “black box” of how digitalization impacts green innovation efficiency from a more dynamic resource-based perspective. While most studies regard green innovation activities as a whole, this study delves into the impact of digitalization on green innovation within the distinct realms of green technology R&D and green achievement transfer, taking into account a two-stage value chain perspective. Finally, in contrast to previous literature that predominantly analyzes influence mechanisms through linear impact, the authors use configuration analysis to intricately unravel the complex influences arising from various combinatorial relationships of digitalization and resource orchestration behaviors on green innovation efficiency.

The Path of Enterprise Working Capital Management from the Perspective of Value Chain

The Path of Enterprise Working Capital Management from the Perspective of Value Chain

A Study on the Impact of Digital Economy on Implied Carbon Emissions from Trade in the Perspective of Global Value Chains

A Study on the Impact of Digital Economy on Implied Carbon Emissions from Trade in the Perspective of Global Value Chains

Research on the enhancement path of green technology innovation efficiency under the group perspective.

China is at a critical moment of transforming high-speed development to high-quality development, and it is significant to improve the efficiency of green technological innovation. In this paper, under the perspective of two-stage innovation value chain, we construct the evaluation index system of green technology innovation efficiency, adopt the super efficiency SBM model to measure the green technology innovation efficiency of China's high-tech industries, and based on the results obtained, we assume the fuzzy set qualitative comparative analysis method (fs-QCA) based on the group theory to explore the complex causal mechanism and grouping paths of the interaction between enterprises, government and market that affects the green technology innovation efficiency Mechanism and group path. The study results show that (1) enterprise, government, and market are not necessary conditions to influence the efficiency of green technological innovation, and even if a particular party plays a central role, it needs the assistance of other parties. (2) The improvement of green technological innovation efficiency requires the interaction of enterprises, government, and market, and even if any party does not have the core conditions, it can still produce high green technological innovation efficiency. (3) The path of the "innovative compensation" effect is identified, which indicates that enterprises will generate a high level of green innovation efficiency under sufficient investment brought about by the enterprise scale effect and matched with a good level of economic development. (4) The market economy-led pathway suggests that when the market economy is highly developed, firms do not need environmental regulation and government support to generate efficient levels of green technological innovation.

Strategic Digitalization in SMEs of developing economies: Digital twin driven engineering value chain for customer-centricity

While digital technologies provide the backbone for digital twins of product, process, and performance, early adopters of digitalization recommend that technologies need to be supported by reengineered processes to unlock capacities and empower people. While the existing research literature provides insights into digital technologies, holistic consideration of product development processes and their responses to interventions is found lacking. This study focuses on the experiential inputs of manufacturing professionals to build a perspective of a customer-centric digitalized value chain enriched with digital twins of product, process, and performance. Authors interacted with SME stakeholders, through brainstorming workshops organized under the aegis of a premier Indian industry association. Based on the insights drawn from the expert interactions, monitoring, optimization, integration, and customer satisfaction have been established as the strategic steps of digitalization. This study adds to the digital twin-based engineering knowledge by introducing a versatile process-technology-performance matrix. SMEs can adopt this matrix to tailor solutions to their unique business needs, enabling flexible creation of digital twins. This aspect makes this study relevant and novel for manufacturing SMEs preparing for implementing transformative digital technologies.

The effect of service outsourcing on labor income share: Measuring labor income share from the global value chains perspective.

Inspired by the positive impact of service outsourcing in Chery and other enterprises on human resources, this paper explores the impact of service outsourcing on labor income share. This paper introduces a framework to analyze how value added is distributed between capital and labor along the mix of inputs from different countries and sectors participating in global value chains and examines the effect of service outsourcing on the labor share income. Using the World Input-Output Database (WIOD) and OECD Inter-Country Input-Output (OECD- ICIO) table, this paper utilizes the WWZ decomposition method of global value chains (GVCs) to quantify labor share income. The results show that: (1) service outsourcing significantly contributes to the increase in labor share income; (2) Offshore outsourcing had a statistically stronger effect on labor share income after the financial crisis, both compared to the past and to onshore outsourcing; (3) Offshore outsourcing has a higher coefficient in countries with low technology. For ease of comparison, only onshore outsourcing shows a statistically significant difference among various service types; (4) The analysis using Chinese data reveals that the coefficient of offshore outsourcing is negative and statistically significant, indicating that industries with higher levels of service outsourcing have a lower labor share income.

The role of material resources for rapid technology diffusion in net-zero transitions: Insights from EV lithium-ion battery Technological Innovation System in China

A key challenge to achieving a net-zero transition by mid-century is rapid diffusion of several low-carbon technologies which requires massive upscaling of production capacity including vast use of material resources. However, both diffusion theory and main transition studies frameworks pay insufficient attention to the role of material resources. To better understand the relationships between diffusion, production, and material use in technology diffusion and transitions, we conceptually elaborate the role of material resources in the value chain perspective on Technological Innovation Systems (TIS). We account for how material scarcity appears and how it influences TIS structural and functional dynamics with particular attention to how actors along the value chain respond. Our study of China's Electric Vehicle lithium-ion battery TIS value chain shows that a shortage of critical materials occurred due to structural tensions between sectoral regimes along the value chain which influenced the TIS structural and functional dynamics both within and across sectors. The study contributes new insights on the role of materials in TIS and circular value chains, on how the TIS growth and diffusion phase unfolds, and on how urgency of a net-zero transition and geopolitics influence diffusion.

How public education investment and advanced human capital structure affect regional innovation: A spatial econometric analysis from the perspective of innovation value chain

This research delves into the impact of public education investment and advanced human capital structure on the innovation outputs at various processes of China's regional innovation value chains. Utilizing the spatial Dubin model, the study analyzes panel data from 30 provinces spanning from 2002 to 2020, distinguishing between the Research and Development (R&D) and Commercialization sub-processes in regional innovation. It reveals that public education investment significantly boosts R&D output directly and also positively influences commercialization output through spillover effects. This trend remains consistent over time. The study also uncovers regional variations in the effects of public education investment on innovation outputs between China's eastern regions and its central-western counterparts. This study does not find any evidence that public education investment leads to local advanced human capital structure. In terms of direct impacts, there appears to be a substitution effect between public education investment and the advanced human capital structure on local R&D outputs, while a more advanced human capital structure tends to negatively correlate with local commercialization outputs. Notably, the study indicates that the higher the level of advanced human capital structure, the more pronounced the negative impact of public education investment on local commercialization outputs. In light of the above findings, we believe that governments should increase public investment in education, but also recognize that investment alone is not enough. It is necessary to transform the education development model and establish a high-quality innovation system. Differentiated strategies for different regions should be implemented, and an appropriate investment compensation mechanism should be established to solve the problem of uneven investment returns. We also do not recommend blindly pursuing the advanced human capital structure. Only when investment in education is in line with the human capital structure will it produce the best results.

The moderating role of technological collaboration in the relationship between absorptive capacity and servitization: an open innovation approach in high-tech industries

PurposeAbsorptive capacity, technological collaboration and servitization are analyzed to establish ways to overcome the balance between products and services in manufacturing companies. A fresh perspective is introduced by presenting a framework for innovation strategy, moving beyond product-based R&D.Design/methodology/approachThe hypotheses are tested using data on Spanish firms in the high-tech chemical and pharmaceutical industries through ordinary least squares regression analysis. The sample consists of 112 manufacturing firms included in the Spanish Survey of Business Strategies.FindingsThe results show that absorptive capacity facilitates servitization and that technological collaboration moderates the relationship between absorptive capacity and servitization. The synergies between absorptive capacity and technological collaboration for servitization are recognized from the perspective of open innovation as a way of resolving the trade-off between products and services.Research limitations/implicationsFuture research should introduce more sources of collaboration by broadening the value chain perspective. Other approaches to innovation may also be considered, including relationships to process innovation.Practical implicationsThe results can provide meaningful guidance for companies to determine the key opportunities of servitization driven by absorptive capacity, and the best ways to leverage open innovation and collaboration strategies to exploit such approaches.Originality/valueThis research enriches theories on servitization, open innovation and innovative behavior. Open innovation strategy should be linked to greater servitization activity and should support an open service strategy. This approach is crucial for building innovation capabilities through technological collaboration.

The Impact of Manufacturing Digitization on Embodied Carbon Intensity: A Global Value Chain Perspective

Climate issues have become one of the most important topics for the sustainable development of the global economy. Balancing trade gains with carbon emissions has become a strategic objective for each economy. Based on cross-country panel data from 2006-2018, this essay comprehends the relationship between manufacturing digitization and export embodied carbon intensity at the theoretical level and tests the theoretical arguments using panel models. In addition, the findings show that the digitization of manufacturing can reduce the export embodied carbon intensity through two paths: the deepening of the forward embeddedness and the improvement of the division of labor position in GVCs.

Environmental regulation, technology density, and green technology innovation efficiency

From the perspective of the innovation value chain, this study divides the innovation efficiency of green technology into two stages: R&D efficiency and achievement transformation efficiency. Technology density is introduced as a threshold variable to examine the influence of environmental regulation on the efficiency of green technology innovation at both stages. The findings reveal that China's overall green technology innovation efficiency (GTIE) is improving. R&D efficiency initially declined, then increased, while the efficiency of achievement transformation experienced a three-stage pattern: rise-fall-rise. The GTIE distribution across the two stages progressively increases from the northwest to the southeast, resulting in a concentrated, contiguous “line-shaped” and “block-shaped” pattern. High-efficiency areas are primarily found in the eastern coastal regions. Nationally, Environmental regulation and R&D efficiency share an inverted U-shaped relationship, with a double threshold effect of technology density. Environmental regulation does not significantly affect achievement transformation efficiency, but there is a single threshold effect due to technology density.

Financialization and the upgrading of export enterprises:A global value chain perspective

ABSTRACTIn recent years, the financialization of enterprises has been increasing. The impact of financialization on exporters’ upgrading was studied in this article from a global value chain (GVC) perspective with the data of listed companies from 2007 to 2013. A remarkable negative impact is found from financialization on firms’ export upgrading in our paper. And it also provides helpful insights for enhancing export competitiveness.

Research on Cost Management of Logistics Enterprises from the Perspective of Value Chain

In recent years, the rise of online platform transactions has led to the rapid development of the logistics industry. On the other hand, the extensive management mode of China's logistics industry can be changed to precise management, which has more advantages in international competition. This paper adopts a combination of literature research and case analysis to analyze how SN Holdings can use value chain cost management to optimize and allocate internal and external resources in the process of cost management, reduce energy consumption and improve resource efficiency, so as to maintain the long-term competitive advantage of the enterprise.

An Analytical Study on Managerial Competencies and Business Performance of Farmer Producer Organizations (FPOs): A Value Chain Perspective from India

Farmer producer organizations (FPOs) act as an effective institutional mechanism in addressing the constraints of small holders in India. But only a very few FPOs are prospering in their life stages, demanding a need for competent managerial team to understand the business dynamics and improve the organization performance. Hence, the present study attempted to understand the relation between business competencies and financial performance of FPOs operating in the state of Andhra Pradesh, India mediated through business approach. A proportionate representative sample of 4 FPOs and 11 FPOs registered under cooperatives act and companies act, respectively, were selected randomly. Primary data from 50 % of managerial team of FPOs ( n = 94) and secondary data from audited financial reports from 2019–2020 to 2021–2022 were obtained. The major findings of the study showed that business competencies and financial performance of market-centric approached FPOs are significantly higher over production-centric FPOs. A strong and significant correlation existed between competencies and performances. Variables namely education, business exposure, leadership role in community-based organizations and digital media exposure showed moderate correlation with various competency spheres. Due to relatively higher level of these factors in the respondents of market-centric approached FPOs over their counterparts, they possessed comparatively higher business competencies and as such identified business opportunities on the upstream value chain (market-centric) and accordingly showed better financial performance over the FPOs that identified opportunities on the downstream value chain (production-centric). Thus, a strong relationship existed between business approach, business competencies and financial performance.

Emissions reduction strategy in a three-stage agrifood value chain: A dynamic differential game approach

Agrifood systems account for 31% of global greenhouse gas emissions. Substantial emissions reduction in agrifood systems is critical to achieving the temperature goal set by the Paris Agreement. A key challenge in reducing GHG emissions in the agrifood value chain is the imbalanced allocation of benefits and costs associated with emissions reduction among agrifood value chain participants. However, only a few studies have examined agrifood emissions reduction from a value chain perspective, especially using dynamic methods to investigate participants’ long-term emissions reduction strategies. This paper helps fill this gap in the existing literature by examining the impact of collaborations among agrifood value chain participants on correcting those misallocations and reducing emissions in agrifood systems. We develop a dynamic differential game model to examine participants’ long-term emissions reduction strategies in a three-stage agrifood value chain. We use the Hamilton-Jacobi-Bellman equation to derive the Nash equilibrium emissions reduction strategies under non-cooperative, cost-sharing, and cooperative mechanisms. We then conduct numerical analysis and sensitivity analysis to validate our model. Our results show that collaboration among value chain participants leads to higher emissions reduction efforts and profits for the entire value chain. Specifically, based on our numerical results, the cooperative mechanism results in the greatest emissions reduction effort by the three participants, which leads to a total that is nearly three times higher than that of the non-cooperative mechanism and close to two times higher than the cost-sharing mechanism. The cooperative mechanism also recorded the highest profits for the entire value chain, surpassing the non-cooperative and cost-sharing mechanisms by around 37% and 16%, respectively. Our results provide valuable insights for policymakers and agrifood industry stakeholders to develop strategies and policies encouraging emissions reduction collaborations in the agrifood value chain and reduce emissions in the agrifood systems.