Production Value Chain Research Articles

Improving Cinnamomum Burmannii Blume Value Chains for Farmer Livelihood in Kerinci, Indonesia

Abstract Cinnamon is the most common baking spice in the world. It comes from a small evergreen tree that’s part of the Lauraceae family. Genus Cinnamomum regroups some species whose stem bark is harvested, conditioned and traded as cinnamon in the international market. Over the centuries, the species have been domesticated so that now at least six different ones are grown in Southeast Asia. One of the species is burmannii, also known as Koerintji Cinnamon, which generates income for numerous smallholder farmers in Kerinci district, Jambi, Indonesia. Koerintji cinnamon is known for its unparalleled quality that comes with its sharp and sweet flavour, with a slightly bitter edge. However, international market requirements for product certification and quality standards make it difficult for a farmer to comply. Our research will address issues related to (improvement of) productivity, sustainability and value chains faced by cinnamon producers in Kerinci, to strengthen their product’s value chains. Smallholder farmers are very vulnerable to a well-functioning market, and thus empowering the value chains of agricultural products will increase farmers resilience to have access to the market. The research will analyse the development of agricultural value chains, certification & standards on trade mechanism to help farmers earn a better income and prospects.

Russia in the world market of aircraft engines: Problems and prospects

The aviation industry is one of the economy’s most knowledge-intensive and innovative sectors. For this reason, the main civil aviation manufacturers have a full production cycle for creating aircraft. A limited number of countries represent them. These are the USA, France, Germany, Great Britain and Spain, as well as Russia, Brazil, Canada, and China. Boeing and Airbus are the undisputed leaders in the international civil aviation market. Companies from the USA (General Electric, Pratt Whitney) and Europe (Rolls-Royce, Safran) are also leading in the aircraft engine market. After a protracted recession, the aircraft industry in Russia began to integrate into the global aviation industry successfully. But, the restrictions imposed in the spring of 2022 against Russian civil aviation have impacted the possibilities of its development within international production value chains, significantly changing plans for individual projects and the Russian aviation industry as a whole. The goal of the article is to determine the place and prospects of Russia in the world market of aircraft engines; identify the possibilities of domestic enterprises to quickly implement measures to transfer all aircraft systems and units to domestic analogues. The article gives a general description of the global civil aircraft industry, including the production of aircraft engines. Leading companies in the global aircraft manufacturing market are represented. The study results made it possible to determine the main trends in this market; identify factors and conditions that influence their formation. In this context, the role of import substitution in this area of activity, the problems of the Russian aviation industry and its ability to provide the domestic market with civilian airliners in the foreseeable future are analyzed.

Value Chain and Supply Chain Management of Products from Women Farmer Groups in South Tangerang

This study aims to analyze the operational process of the production of Farmer Women's groups effectively based on supply chain management, and determine the internal condition of the organization by using value added analysis (value chain). The analytical method used is supply chain management and value chain analysis. The purpose of this research was to find out and analyze the Supply Chain Management and value chain analysis of products produced by the Farmer Women's Group. The data analysis method used in the framework of assessing the performance of internal value added with Value Chain Analysis and knowing the process of the supply chain or supply chain. This research is included in TKT 2, namely formulating the concept of technology and its application to the UKM object of the Cempaka Farmers' Group in South Tangerang. The results obtained were three superior products, namely cumin plants and their preparations, python plants and their preparations, and butterfly pea plants and their preparations. Value chain by formulating the main factors and supporting factors for activities that must be carried out by KWT Cempaka.

Awareness and adoption of circular economy in the consumption and production value-chain among MSMEs towards sustainable development

The global value-chain was hugely disrupted by the Covid-19 pandemic which collapsed many micro, small and medium enterprises (MSMEs) globally, especially in Africa where little or no support was received from governments. The circular economy (CE) is recognized as a sustainable option for the linear economic system, as it resolves the crisis of a scarcity of resources in the value-chain and reduces the cost of materials, enabling a sustainable environment. This study aims to assess the awareness, level of adoption and factors driving CE among MSMEs in Nigeria. The results reveal that the level of awareness of CE among the sampled 206 MSMEs is moderately high though with a low level of adoption. The results, using the logistic regression method, indicate that top management commitment, digital technology, regulatory incentives and financial resources are the main drivers of CE adoption. In addition to this, the study recommends improvement in training of employees in CE activities and the fostering of collaboration with other companies and customers within the value-chain. There is a strong need for government policy which enlightens business enterprises on the importance of CE adoption in their value-chain, provides CE financial support for small enterprises as well as ensuring inter-organization cooperation within the value-chain.

The Impact of Opportunistic Behavior on the Effectiveness of Export-Oriented Agricultural Product Chain Linkages: A Case Study in Vietnam

Exporting goods in general, and exporting agricultural products in particular, generate important capital accumulation for importing and developing production, serving the industrialization and modernization efforts of countries. From the economic activities in Vietnam in recent years, it is evident that linking agricultural products for the purpose of exports indeed generates substantial revenue to the national budget. It is an important factor and contributes significantly to the sustainable development of the country's economy. During the process of international integration and globalization, organizations always strive to seek external collaboration opportunities with partners in the product value chain to ensure the efficiency and responsiveness of the value chain, as well as to leverage resources and supply capabilities for their customers (Cao and Zhang, 2011). The linking process ensures product quality, promotes organizational development, and ensures high effectiveness in the collaboration activities among members (Walter, 2003). Cooperative behavior and activities in supply chain management have achieved significant importance (Kocoglu et al., 2011). Lambert et al. (1998) define ensuring product supply chain as the linkage of companies aiming to deliver products and services to the market. Keywords: Opportunistic behavior; Beliefs and judgments, Commitment, Perception of safety, Risk in the linkage, Effectiveness of the chain linkage.

KIBS spillovers in the knowledge production function of manufacturing and services sub-sectors at the USMCA countries

In this paper, the knowledge production function is estimated by regressing R&D knowledge spillovers, capital investment and labor productivity on innovation generation, variable measured as filled patents, in the manufacturing and services sectors of each one of the three countries that integrate the USMCA Agreement (United States-Mexico-Canada Agreement). The results state that direct and indirect spillovers of KIBS R&D expenses, reinforced by capital investment and labor productivity measures, have a significative influence on the number of patents filled by each country over the years analyzed on those sub-sectors of the USMCA economy. That positive and causal effect generates knowledge production value chains from KIBS consultancies to the manufacturing and the services subsectors and backwards therefore reinforcing the value creation system of those services; also, by promoting the development of new goods and services by innovating in the production or administrative processes of the enterprises immerse on those subsectors (the embodied effect). The conclusions could serve as basis for the analysis of the sectorial policies that have to be stipulated by the conjunction of the politicians of the three countries, in the institutions already been established by the USMCA agreement in recent years. Keywords: KIBS, I-O direct and indirect impacts, USMCA, knowledge spillovers, manufacturing and service sectors, patents, innovation, knowledge production function.

Complementary approach to the analysis of countries’ participation in global production networks

The purpose of the article is to explore a complementary approach to the analysis of countries’ participation in global production networks. We have analyzed the methodological aspect from the standpoint of the Micro and Macro theory of international production networks and value chains. In the context of globalization, production networks are actively formed within both individual industries and at the intersectoral level, and they successfully operate not only within limited territories but also at the interstate, interregional and global levels. Therefore, the study of methods for analyzing the participation of countries in global production networks is relevant. The article has used statistical analysis methods. Analytical methods have been used to determine the countries’ leading types of economic activity (fields of specialization, qualitative indicators that characterize each of the industries of the countries). The study of this issue was carried out on the example of the EU countries. One of the methods of analyzing the assessment of bilateral relations of the partner countries’ national economies is complementarity. The article examines the complementarity index as an indicator that determines the trade structure of partner countries. We received a model of the Global map of the International Production Network (nodes of trade) by specific industries, such as Manufacturing, Chemicals and non-metallic mineral products, Rubber and plastics products, computers, electronic and electrical equipment, and transport equipment. To obtain accurate results, we selected specific countries: Germany, the USA, Japan and China, and examined their statistics in two dimensions: gross exports and gross imports, in specifically selected industries.

A Comparative Study of EU and US Regulatory Approaches to Cybersecurity in Space

This article addresses a need for enhanced transatlantic cooperation and coordination between the European Union (EU) and the United States (US) to prevent, detect, and respond to malicious cyber activities and the need for legislation to ensure that critical infrastructure is secure and resilient. It examines the cybersecurity of space critical infrastructure based on three pillars: cyber resilience, stable cyberspace, and cyber capacity building, and argues that to build up these pillars, the EU and US must have a shared assessment of space security challenges, a sound evaluation of the current strengths and gaps in both regulatory models, and an understanding of the driving factors to legislative change in the two systems. Although both frameworks converge on the importance of risk assessment as being at the heart of effective cybersecurity, this article underscores that neither model is equipped to cover the entire production value chain of space assets. In light of these findings, this article provides several recommendations for how the frameworks can become more resilient, including, inter alia, using public-private partnerships to develop tailored regulations compatible with existing cyber regimes and ensuring that such regulations are specifically designed to improve the cybersecurity of space infrastructure. Cybersecurity, cyberspace, resilience, legislation, critical infrastructure, space assets, public-private partnerships

Strengthening Destination Branding Through Local Product Innovation in Watusigar Village, Ngawen, Gunungkidul

Kalurahan Watusigar, which declared itself a conservation village, has a strategic location as the main access point for tourists from the north and east to the tourism area in Gunungkidul Regency, offering the opportunity to pioneer a green tourism village. The local community of Kalurahan Watusigar has initiated various initiatives through collaboration with relevant stakeholders. One such collaboration, with the Research and Community Service Institution of Duta Wacana Christian University (LPPM UKDW), is a community service activity aimed at strengthening destination branding through training for local product innovations of eco prints. The selection of eco print products is based on the availability of plants in the Watusigar area that can be used as natural dyes. The objective of this community service activity is to focus on developing the branding of Kalurahan Watusigar as a conservation village and green tourism village through local product innovation using natural materials and marketing strategies in accordance with digital technology. The target audience for this activity is the community members and Karang Taruna members of Kalurahan Watusigar. This community service activity introduces the eco print product ecosystem, which is the value chain of eco print products starting from creation, production, distribution, consumption, and conservation, utilizing action research methods through training, discussions, and workshops. The result of this community service activity is the expansion of knowledge about plants and materials in the environment to be used as environmentally friendly craft products. The eco print product innovation is an essential step in creating a creative economy ecosystem in Kalurahan Watusigar.

Seven steps in the value chain of health products for equitable access and delivery in low- and middle-income countries

Seven steps in the value chain of health products for equitable access and delivery in low- and middle-income countries

Estimating the effects of regional value chains of the RCEP in a GVC-CGE model

The Regional Comprehensive Economic Partnership (RCEP) is regarded as a value chain accelerator that will support global value chains (GVCs) and unlock regional value chains (RVCs) in particular. However, there is a lack of quantitative evidence to support this claim. This paper constructs a GVC-CGE model with embedded GVC trade structure and RVC participation measurement to assess the comprehensive impact of RCEP’s tariff and non-tariff reductions on global trade and RVCs. The simulation results show a significant expansion of bilateral trade among member countries that only have trade agreements through RCEP, and the trade of intermediate goods boosts more than final goods for most member countries. The participation in RVCs among member countries has increased while the participation in extra-RVCs has decreased. This trend is especially noticeable in the textile, wearing apparel, motor vehicle, and food sectors in most member countries, except for the ASEAN apparel sector, which has seen a decrease in forward RVC participation. The financial and pharmaceutical sectors have experienced an increase in forward RVC participation in both member and non-member countries. The RCEP has significantly reconfigured regional production networks more than demand networks. China, Japan, and Korea have shifted their part of production and demand value chains from global to regional, which has elevated their importance in the RVCs at both the overall and sectoral levels.

The synergy effect through combination of the digital economy and transition to renewable energy on green economic growth: Empirical study of 18 Latin American and caribbean countries

Tremendous effects on the global economy in terms of economic, social and environmental costs remind us of the catastrophic consequences of climate change and global warming caused by CO2 emissions. Therefore, accelerating decarbonization of the global energy system should be put in place to curb large amount of CO2 emission from hydrocarbon energy sources on which the current global value chain of production heavily relies.This study focuses on analyzing the effects of renewable energy transition, the digital economy, and the synergy between them on green economic growth in 18 Latin American countries. To capture the multidimensionality of these transitions, the Renewable Energy Transition Index (RETI) and the Digital Economy Index (DEI) are developed using the Principal Component Factor (PCF) technique. The FixedEffect Panel Threshold Regression (FEPTR) substantiates that renewable energy transition has a significant threshold effect on economic growth and environmental sustainability depending on the level of income and carbon emissions. On the other hand, the Method of Moments Quantile Regression (MMQR) shows that both renewable energy transition and the digital economy have a significant positive impact on economic growth in all quantile groups. For the environmental sustainability, only renewable energy transition is found to have a positive impact in all quantile groups. From the synergistic effect perspectives, the CO2 emissions reduction is observed in both the low and middle quantile groups, but the economic growth promotion is only observed in a low quantile group.

The temporalities of natural resources extraction: Imagined futures and the spatialization of the lithium industry in Chile

Lithium is expected to be a key resource for the upcoming economy, mainly for its linkage to green energies. A substantial amount of its production occurs in developing countries, promising positive outcomes for local and global actors. Based on the “Imagined Futures'' framework developed by German Sociologist Jens Beckert (2016), this article aims at examining the role of fictional expectations in local, national, and global processes of spatialization regarding lithium production, extraction, and commercialization. In particular, this article based on the case of Chile asks how fictional expectations constructed around the lithium industry explain decisive and conflictual dynamics within different spatial scales in the context of the global production networks and value chains of this industry. We argue that analyzing fictional expectations allows us to understand these dynamics. At the same time, the case of the lithium industry in Chile provides an opportunity to explore the role of territories and spatialization when studying fictional expectations. To do so, the paper draws on extensive empirical evidence from interviews with 30 key actors linked to the lithium industry. The main results show how fictional expectations and imaginaries about the future economy produce tensions and conflicts at the local level, at the time that pressure actors to make decisions in the present based on images about a future. Global value chains, economic forecasts, and political demands for greener technologies also provide narratives and imaginaries, feeding contesting interests, positions, and views about potential benefits and consequences of lithium extraction, tensioning the different scales of decision-making.

Tuna sidestream valorization: a circular blue bioeconomy approach.

Tuna is an economically significant seafood, harvested throughout the world, and is heavily traded due to its high nutritional quality and consumer acceptance. Tuna meat is rich in essential nutrients such as amino acids, polyunsaturated fatty acids (PUFA), and trace minerals. The huge volume of solid and liquid sidestreams generated during the processing stages of tuna is creating environmental and socioeconomic challenges in coastal areas. Different products such as fish meal, protein hydrolysates, collagen, enzymes, oil, and bone powder can be produced from tuna sidestreams. Using different nutrient recovery technologies like enzymatic hydrolysis, chemical processing, and green technologies, various categories of product value chains can be created in line with the conventional processing industry. This review attempts to provide a route map for the tuna industry for achieving the circular blue-bioeconomic objectives and reorient the irregular utilization pattern into a sustainable and inclusive path.

Value Chain and Stakeholders’ Analyses of Batik Tulis Industry in Indonesia

The study aims to analyze the values added of batik tulis production and to analyze stakeholders’ objectives and competitiveness of batik tulis business. The study used a mixed method, a combination of quantitative and qualitative analysis. The data were analyzed using several analyses namely content analysis, value chain analysis, and stakeholder analysis. The content analysis was carried out to identify and to explain the supply chain of batik tulis production. The value chain analysis was undertaken to identify the existing stages of the value chain in batik tulis production. The stakeholders analysis was used to analyze stakeholders’ objectives and competitiveness of batik tulis business. The results revealed that the value chain of batik tulis production started from the procurement of raw materials, production processes, and sales. The highest added values obtained were through sales to wholesalers and retailers as compared to sales by displaying the products in galleries. The average profit margin earned by each entrepreneur exceeded 50% of the main production costs. Profit and reputation were revealed as the two stakeholders’ objectives that have the strongest and the most dominant influences in the industry. The entrepreneurs are expected to further optimize the activities that contribute the highest added values to be more efficient in managing the production costs, and in maintaining the interrelationship with other players of batik tulis entrepreneurs as well as with the suppliers of raw materials so that the cooperation can be carried out effectively.

O81 Livestock ruminant production systems and value chains contributing towards a more sustainable world: opportunities and challenges

O81 Livestock ruminant production systems and value chains contributing towards a more sustainable world: opportunities and challenges

The problem with annotation. Human labour and outsourcing between France and Madagascar

Artificial intelligence advancements have reignited job displacement debates that focus on how the use of artificial intelligence affects labour, without considering how the production of this technology influences labour division. The generalisation of machine learning has created an increased demand for outsourced data workers. Outsourcing companies and crowdwork platforms are both used to generate, annotate, and enrich data. This data tasks are performed by workers from low-income countries, who often earn poverty wages. As with traditional outsourcing, workers must integrate complex multinational subcontracting networks. In this article, we examine how France outsources artificial intelligence-related tasks to workers in the African island nation of Madagascar. For our study, we interviewed 26 data workers, eight employees of French start-ups, and conducted secondary research on two artificial intelligence systems – a canteen checkout terminal and an algorithm to detect shoplifters in stores. The data collected allowed us to reconstruct an end-to-end artificial intelligence production value chain, revealing the need for data classification and artificial intelligence problematisation. Commercial artificial intelligence, therefore, does not displace employment by automating service jobs. Rather, by delocalising labour into the Global South, it lengthens the externalisation chain.

The Efforts Of The Halal Value Chain Ecosystem To Realize Indonesia As The World's Biggest Halal Producer

Indonesia currently has a large number of Muslim markets from various parts of the province. So that it is possible to become a halal producer in the future development of the Islamic economy. Moreover, in 2022 Indonesia was chosen as one of the second-best rewarding tourist destinations based on the Global Muslim Travel Index. This study uses a qualitative approach method with data collection techniques from the study of literature in solving the problem formulation. The research objective is to analyze the efforts made by the ministry of economics in responding to the fulfillment of halal products in the world. The results of the study show that the halal industry must pass through a stage of certification so that the product does not depart from Islamic principles. Certification includes tracing activities on the halal value chain of products to be distributed. In this case, the Ministry of Religion has the duty and function to guarantee the halalness of products that enter circulation and are traded in Indonesia. So the efforts initiated by the government are law number 33 of 2014 concerning guarantees for halal products, then amended and perfected through law number 11 of 2020 concerning job creation, and PP 39 of 2021 concerning the implementation of the field of guarantees for halal products.

Non-Price Competitivenes Factors in a Value Chain of a Tourism Product

The paper addresses the detection and hierarchical composition of non-price factors influencing the quality of a tourism product in the environment of its value chain components from the viewpoint of the way the customers of travel companies understand these factors. The competitiveness dimensions are outlined for micro- and nanolevels, and the scheme to develop the competitive strategy based on the change of external environment factors is offered. The tourism product value chain scheme is generalized from the viewpoint of a travel company. The paper proves that the customers’ desire to maximize the value of a tourism product is based not only on the understanding of the acceptability of respective costs but also the level of awareness about the exclusiveness and quality of the infrastructural framework of the offer. The authors reveal that the components of the customers’ understanding of the tourism product value chain are related to the integral understanding of tourism service. The components of non-price factors are outlined chronologically and non-price factors of impact on the competitiveness in various links of the value chain are identified. The priority of inclusion was estimated by the rapid test method. The suggested hierarchy can foster the more qualitative ranging and updating of certain components of a tourism product to improve its understanding by customers, which will impact the competitive positions of the travel companies.

OPTIMISATION OF ENERGY CONSUMPTION IN PAPER PRODUCTION. REVIEW

This article examines the current state of research on energy efficiency in the paper industry, focusing on the key strategies, technologies, and best practices for improving energy efficiency and reducing greenhouse gas emissions. The review covers a range of topics, including energy management systems, process optimisation, cogeneration, waste heat recovery, and renewable energy sources. Overall, the energy efficiency improvements can significantly reduce energy costs and carbon emissions in the paper industry. Still, there is aneed for more comprehensive and integrated approaches that consider the entire value chain of paper production.