Value Chain Theory Research Articles

The Innovation of Online Music Business Model From the Perspective of Industrial Value Chain Theory

The emergence and development of online music have brought a great update to traditional music industrial value chain. As consumers know, record sales, media dissemination, and peripheral income like concerts are three major sources of income of traditional music industry. Compared with that, the music industry now possesses an extensive consumer group, a new growth point, and a new development direction. Meanwhile, as laws and business rules of online music industry improving, the new online music business model need to be established. Based on value chain theory, this article sets up a brand new online music business model and analyzes the operation strategy, and services mode of the business model applying internet thinking.

Standardization and segmented governance in the Peruvian alpaca fibre value chain

ABSTRACT This article builds on and extends Global Value Chain theory through an examination of governance dynamics in the Peruvian alpaca fibre chain in the context of state-sponsored standardization during the period 1997–2013. We propose a Segmented Governance Model (SGM) showing a fragmented-concentrated supply–demand structure to describe and explain how micro and meso-scale interactions configure chain governance. The SGM allows a move beyond the traditional upstream–downstream analysis to accommodate the horizontal mobility of suppliers and buyers at pre-export segments of the chain. Findings show how mixed governance modes co-exist within and between segments and explain why convergence towards a coherent overall market governance does not occur as standardization unfolds. We suggest further studies applying the SGM to better explain national governance dynamics in commodity chains towards inclusive and sustainable engagement in global markets.

Success and Threats in the Clustering of the Automotive Industry in Spain: The Role of Public and Private Agents

Research Question: This article clarifies the role of clusters in industry agglomeration efficiency as well as the role that public and private agents play in their efficiency. Motivation: The automobile industry in Spain is an exception to the industrial decline suffered by the secondary sector since the economic crisis exploded in Spain. Employment in the vehicle manufacturing industry has recovered significantly in Spain in 2017, with a significant growth bringing it closer to 2008 levels. The sector accounts for 8.6 % of the country's GNP. How can we explain this success? Are there new threats (technology, environmental standards, emerging economies, etc.) menacing the sector? Based on value chain and cluster theories we explain its success and how new threats could be managed? The response lays in analyzing the role of cluster agents in the various clusters dynamics. The research shows how the openness of clusters plays a crucial role in their sustainability. Idea: Based on value chain and cluster theories we explain their success and how new threats could be managed? The response lays in analyzing the role of cluster agents in the various clusters dynamics. The research shows how the openness of clusters plays a crucial role in their sustainability. Data: primary data was collected in two surveys and interviews campaigns during 2013 and 2017. Furthermore, secondary data from national, regional and sectoral sources were analysed. Tools: The research is based on a series of interviews and visits to the automotive clusters in Spain. Additionally, the authors have analyzed abundant secondary information and web contents available on the clusters agents: manufacturers, suppliers, unions, associations, etc. Findings: The paper concludes that regional and national policies are relevant but that consensus between clusters’ agents is essential for their success. However, will the existing agents be able to withstand new threats? .Contribution: The article contributes to clusters literature and the clusters’ role of the agents in the global value chain context. It also sheds light on public policies to support automotive industries. Limitations are linked to resource limitations.

Проблема поиска перспективных производственных технологий в сфере комплексного освоения недр в угольной отрасли

The paper offers an analysis of the problems and prospects of the most difficult branch of the Russian economy, i.e. coal industry. An attempt is made to find directions for diversifying the economy of a coal region. The authors suggested turning to the theory of value chains. The coal industry is the beginning of a chain of added value formation. The study confirmed the possibility of cooperation with the engineering industry for building new technological chains. The analysis also made it possible to put forward a hypothesis that localization on the territory of processing industries, based on related technologies within the framework of modern elongated and ramified supply chains and value chains, can become an instrument for overcoming "enclave" and reducing resource dependence of regions. Based on the analysis of patent sources, the authors defined the main directions of development of the coal industry that are currently in the focus of attention of the leading coal-mining countries and companies. On the basis of scientific research and design, the authors use the example of the Kemerovo region to determine the degree of technological development of the supported patents and the level of companies' readiness for joint projects with the machine-building industry.

푸드테크 관련 한국과 일본의 특허 등록 현황

This study analyzed the current status of registered patents related to food tech in Korea and Japan. Using the patent information search services of Korean and Japanese Patent Offices, patents registered during the past 10 years from January 1, 2005 to December 31, 2015 were searched with the following key words/phrases: “food or meal or diet” and “program or information system”. A total of 669 patents (539 for Korea and 130 for Japan) were finally selected and analyzed. Based on Porter's value chain theory, the patents were categorized into three dimensions related to “manufacturing/processing/ distribution”, “sales & marketing”, and “consumer support”. The results showed that in Korea, 41.7% of the total patents were related to sales & marketing followed by consumer support (37.3%) and manufacturing/processing/distribution (21.0%). In Japan, patents related to consumer support accounted for 56.2% followed by manufacturing/processing/distribution (32.3%), and sales & marketing (11.5%). In the area of manufacturing/processing/distribution, “food quality management system” in Korea, and “food manufacturing and processing management system” and “food safety control and hazard analysis system” in Japan tended to show a significantly higher proportion of patents registered (p<.05). Under sales & marketing, patents in the categories of “food purchase and delivery service system” in Korea and “restaurant information sharing system” in Japan tended to be more frequently registered (p<.05). Finally, in the area of consumer support, “kitchen facility and cooking device control system” in Korea and “menu and nutrition management system” in Japan tended to account for a significantly higher proportion of patents registered (p<.001). The results are expected to provide useful insights into the development of new patents and markets for food tech in the future.

What lies between market and hierarchy? Insights from internalization theory and global value chain theory

In this paper, we suggest that internalization theory might be extended by incorporating complementary insights from GVC theory. More specifically, we argue that internalization theory can explain why lead firms might wish to externalize selected activities, but that it is largely silent on the mechanisms by which those lead firms might exercise control over the resultant externalized relationships with their GVC partners. We advance an explanation linking the choice of control mechanism to two factors: power asymmetries between the lead firms and their GVC partners, and the degree of codifiability of the information to be exchanged in the relationship.

The Governance of the Horticultural Supply Chain in the United Kingdom: A Source of Forced Labour?

Incidents of forced labour have been well documented in horticulture in the United Kingdom. This sort of human rights violation has been linked to fraudulent employment and recruitment practices by labour market intermediaries; legislation such as the 2015 Modern Slavery Act sentences fraudulent labour market intermediaries to life imprisonment when they are found to be guilty of having supplied workers into conditions of forced labour. However, while it is important to focus on the criminological aspects of forced labour, this article argues that it is key to adopt a broader perspective to fully understand the process in question; this is because labour market intermediaries do not operate in a vacuum, but are part of both product and labour supply chains. As such, it is necessary to understand how the governance of the fresh produce supply chain in UK horticulture may lead labour market intermediaries to propel their workers into conditions of extreme exploitation. To this end, this article begins by reviewing the rise of global supply chains and explains how the organisation of horticulture leads to a prevalence of labour market intermediaries. The article then explores two theories, namely global value chain theory and global production network analysis, to demonstrate how the process of forced labour may be approached from an economic-sociological perspective, before focus shifts to an empirical consideration of supply chain governance, based chiefly upon data gathered through 16 expert qualitative interviews with relevant parties.

Comparative Study on the Optimization Path of Industrial Value Chain in China’s Resource-Based Cities

China’s resource-based cities have currently entered a period of comprehensive transformation. The differences in the economic and technical environment and significant policy orientation make it unique to some extent. This study applied value chain theory to analyze the industrial value chain of China’s resource-based cities, and three important types of optimization paths that have been applied differently by different cities were proposed. Grey relational analysis was used to compare the comprehensive value creation capacity of the three paths and its relationship with the comparative advantage of local industry. We found that a circular economy system has significant capacity to optimize economic and social value and favorable prospects for environmental value. However, this may have obvious instability in early periods of transition. This disadvantage can be remedied by cultivating related industries that have significantly comprehensive advantages in the early period. In the long term, the other two paths need to be combined with cultivating emerging industries. Finally, we found that the value creation capacity of China’s resource-based cities has roots in optimization of the industrial value chain rather than enhancement of the industrial comparative advantage. The reason for this is that value creation capacity has not yet been transformed into a source of industrial comparative advantage.

Study on Upgrading Strategy of Medical Device Industry Based on Industrial Value Chain

Since twenty-first Century, China’s medical equipment industry entered a rapid growth phase, but Chinese medical device products with low technology, low added value have urgent problems of restricting the development of the industry. Based on the industry value chain theory, this paper analyses and recognizes the composition and characteristics of the medical device industry value chain, and discusses the status quo and existing problems of China’s medical device industry value chain, and puts forward the upgrading strategy of China’s medical device industry from the perspective of the whole industry value chain.

Rethinking health sector procurement as developmental linkages in East Africa

Health care forms a large economic sector in all countries, and procurement of medicines and other essential commodities necessarily creates economic linkages between a country's health sector and local and international industrial development. These procurement processes may be positive or negative in their effects on populations' access to appropriate treatment and on local industrial development, yet procurement in low and middle income countries (LMICs) remains under-studied: generally analysed, when addressed at all, as a public sector technical and organisational challenge rather than a social and economic element of health system governance shaping its links to the wider economy. This article uses fieldwork in Tanzania and Kenya in 2012–15 to analyse procurement of essential medicines and supplies as a governance process for the health system and its industrial links, drawing on aspects of global value chain theory. We describe procurement work processes as experienced by front line staff in public, faith-based and private sectors, linking these experiences to wholesale funding sources and purchasing practices, and examining their implications for medicines access and for local industrial development within these East African countries. We show that in a context of poor access to reliable medicines, extensive reliance on private medicines purchase, and increasing globalisation of procurement systems, domestic linkages between health and industrial sectors have been weakened, especially in Tanzania. We argue in consequence for a more developmental perspective on health sector procurement design, including closer policy attention to strengthening vertical and horizontal relational working within local health-industry value chains, in the interests of both wider access to treatment and improved industrial development in Africa.

Influence of Funding on Prosecution of Corruption Cases in Uasin Gishu County, Kenya

Corruption and other economic crimes are the impediment of Kenyan development efforts. All these crimes harm Kenyan economy. This study investigated the influence of funding on prosecution of corruption cases in Uasin Gishu. This study was underpinned by the value chain theory, resource based view and dynamic capabilities theories. The study used purposive sample of 72 respondents of which a response rate of 83.3% was achieved that is 60 respondents. Target population consisted of the EACC investigators, ODPP prosecutors, police prosecutors, special magistrates dealing with corruption cases and counsels from the Attorney General Chambers dealing with corruption cases in Uasin Gishu County. The study utilized descriptive research design. Questionnaires were used as the data collection instrument. Data was analysed using descriptive, inferential statistics.

Enhancing the Value Added for Enterprises in the Supply Chain of Vietnamese Aquatic Products Export in Current Period

On the basis of inheriting and developing value chain theories, global value chains, fisheries supply chains, value added, and value added enhancements in the supply chain of aquatic products export. The paper has systematically and hinted at the urgency of the issue of how to increase value added for enterprises in the aquatic products export supply chain. With the results of the research and from the point of view of increasing value added for enterprises in the aquatic products export supply chain, the paper has established the scientific and practical arguments of enhancing value added. Thereby, this research proposing solutions to increase value added for enterprises in the aquatic products export supply chain. Value added solutions for enterprises in the aquatic products export supply chain are focused on three main groups of solutions: Value added solutions for fish seed business; Value-added solutions for aquaculture business; Value added solutions for export processing business. In addition, there are solutions to the Government and Associations.Thus, in order to increase value added for business in the fisheries supply chain, firstly, priority should be given to the elements of the business as (i) Group of fish seed companies (ii) Factors of aquaculture business; (iii) Factors of processing business for export. Second, the group of factors belongs to the Government. Third, the elements belong to the association. In addition, there should be proper government attention and coordination with industry associations to maximize value added for business in the aquatic products export supply chain. Finally, the paper can’t avoid certain limitations. The paper author wishes to receive the comments of scientists, the Council and those who are interested in this field so that they can continue to complete the paper.

The Study of Carbon Cost Management under the Carbon Trading Mechanism—Based on the Value Chain Theory

Carbon cost management plays the key role in response to carbon market changes. According to the literature review in China and abroad, this paper breaks the limitations of existing literatures which just focus on discussing the concept of carbon cost management and accounting the carbon cost in operating activities. Combined with the management accounting role definition of full participation in business decision and based on the value chain theory, this paper introduces marketing, human resource management etc. in carbon cost management accounting scope. Also, it recognizes carbon management factors and provides accounting formulas to build a total carbon cost management system and draw its panorama. With this total carbon cost management system, companies could acquire accurate carbon cost statistics to support their business decisions in carbon market.

基于现代价值链理论的成本控制——以海尔集团为案例

在日趋完善的市场经济和经济全球化的大背景下，国内企业面临着前所未有的激烈竞争和巨大挑战，我国现代企业不仅要致力于如何高效率地满足客户个性化、多元化的需求，还应该谋求成本与效益的最优组合，而并非单纯孤立地降低成本、以单一的手段提高企业利润。鉴于此，本文通过基于现代价值链理论的成本控制研究，从价值的创造和优化等不同角度来理解国内企业的成本，有助于国内企业对成本本质的理解和对成本的进一步有效控制。本文首先介绍了价值链和成本控制的相关理论，在此基础上说明本文研究的意义。接着，本文对现代企业成本控制存在的问题进行了简要的阐述和分析，揭示国内企业传统成本控制方法的局限性。本文的主体内容是以国内制造型企业为例，构建基于现代价值链理论的成本控制框架，并具体阐明在产品研发与设计、原材料的采购、生产、销售和售后服务价值链中成本控制的重点和方法。最后，以海尔集团在大型家电领域里成功运用现代价值链理论分析进行有效的成本控制为案例，进一步说明了基于现代价值链理论的成本控制的现实意义。 With the rapid development of market economy and integration of global economy, enterprises face intensely fiercer competition and challenge than ever before. Modern Chinese enterprises should therefore pay attention to seeking an optimal combination of cost and benefit. To better understand the concept of cost, the paper focuses on the research of cost control based on value chain theory which has been of great use in helping national enterprises to better reduce and control cost efficiently and effectively. The first part of the paper briefly introduces the concepts of value chain and cost control. Then the paper reveals and analyzes the problems of current cost control methods in most Chinese domestic enterprises. The main part of the body is to elaborate the critical points and aspects of cost control ways during the five processes in production in the value-chain-analysis-based cost control method, upon which a framework of cost control based on value chain theory is built. Finally, the paper reinforces the practical significance of value-chain- theory-based cost control method by the example of Haier Group, who has applied this method to effectively control its cost and made a great success.

Quantitative Evaluation for the Level of Intellectual Property Protection in China

Making a review for the quantitative evaluation research of Intellectual Property Protection Level’s in China, we get the research status, research perspective and the research method of the study from the review. After analyzing the existed problem and deficiency of those studies, we set forth the prerequisite of Intellectual Property Protection Level’s study, and some new study thoughts, which are based on performance theory and value chain theory. We suggest a new study method should be used in the quantitative evaluation study of intellectual property protection level, which is a comprehensive evaluation method based on experts information. In the end, the principle of constructing parameter system will be elaborated, which will be used in quantitative evaluation study of intellectual property protection.

Innovative Production of Polyvinychloride on the Basis of Vertical Integration of Business and Cluster Organisation

The paper presents the results of the research of the world and Russian market of polyvinyl chloride (PVC), a comparative assessment is made and the similarities and differences of these segments at the present have been identified. The theoretical possibility of considerable prospects of the development of domestic production of PVC is justified, ensure that it can achieve import substitution and export substitutionof this product in Russia. Based on the theoryof value chains and cluster organization of the enterprises of coal and chemical industries, ferrous metallurgy and other enterprises of Kuzbass have been proposed new technological solutions for the production of PVC, taking into account regional features of naturalresource base and capacity of national and world markets. It is established that the organization of production of PVC, using coal chemistry technology can be a promising growth point for the business of the Kemerovo region, will help to diversify the coal industry, to expand its product structure and export potential of the region, increase its competitiveness.

Research on One-Stop and Full-Support Mode of Intellectual Property Transaction

Intellectual property right transaction is the key link of the successful transformation of scientific and technological achievements, and it plays an important role in the process of promoting the integration of S&T and economy. In order to break the gap between S&T and the economy, the state vigorously advocating the construction of comprehensive service platform for intellectual property rights is based on the whole process of transformation of scientific and technological achievements, but the current real sense of the whole support platform is numbered. Under the guidance of the innovation value chain theory, this paper expounds the connotation and essential characteristics of the one-stop and full-support platform of intellectual property transaction, and summarizes the five-stage model of intellectual property transactions and the basic service requirements during the whole process of intellectual property transactions, then builds the service system of the one-stop and full-support mode based on the overall process of intellectual property transaction and analyzes the unique advantages of the mode. Finally, the paper constructs the internal and external support system so as to improve the construction and development of one-stop and full-support platform mode.

Corporate Tax Reform and “Value Creation”: Towards Unfettered Diagonal Re-allocation across the Global Inequality Chain

Abstract Discussion of corporate tax reform loosely uses concepts like “value creation” and “economic substance” as a basis for systematic departures from the tax outcomes that would otherwise eventuate from computational artifacts based on price, but in fact mainstream economics does not have a theory of value creation as distinct from computational artifacts based on price. Corporate tax reform discourse is therefore an unacknowledged exercise in heterodox value theory. This article deploys global value chain theory to question a key assumption in that exercise; the assumption that while intra-group pricing may be modified or ignored for the purposes of reallocating the corporate tax base between jurisdictions for corporate tax purposes, prices arrived at between entities not under common control are sacrosanct. The article proceeds to deploy an expanded version of the global value chain analytic, the “global inequality chain”, to (i) investigate this question using a schematic illustrative case study based around Amazon’s UK/Luxembourg structuring, and (ii) to develop the beginnings of a concept of “unitary taxation by formulary apportionment of the entire value chain”, which would enable unfettered “diagonal” re-allocations across the space which the global inequality chain describes.

Social media’s impact on organizational performance and entrepreneurial orientation in organizations

Purpose Based on the system of value chain theory, the purpose of this paper is to investigate the impact of social media usage on the performance and the entrepreneurial orientation of the organizations. Design/methodology/approach A total of 174 organizations responded to the survey. Findings The result of the study showed that social media usage has a very strong positive impact on organizations’ performance, in terms of cost reduction, improved customer relations, and enhanced information accessibility. Research limitations/implications In the study, social media usage was categorized into three sub-constructs such as social media usage for marketing, social media usage for building customer relations, and social media usage for information search. This study investigated the usage of social media and its impact as a whole, considering all social media tools together. Finally, this study used a cross-sectional sample to collect data. Practical implications The result of the study benefits the managers to understand the various areas of organizational performance that can be improved by social media usage. Social implications The study also provided evidence that social media usage has strong positive influences on enhancing the entrepreneurial orientation of the organizations. Originality/value This study provides a clearer idea on the real importance of social media and its benefits. This study demonstrated the various areas of organizational performance that can be improved through social media usage.

Labour arbitrage: the lifecycle of a global production node

Purpose– The purpose of this paper is to address the geographic mobility of organisations by focusing on an instance of a rural community hosting a mobile phone plant in Romania. The paper depicts the process of changes in the community and outlines the effects during the lifecycle of the investment: starting from the plant’s re-location from Germany to Romania until its closure and re-location to Southern China.Design/methodology/approach– This study emerged from a 16 month ethnography in the community conducted between 2011 and 2013. The quotes and observations come from recorded interviews and field notes taken during this time.Findings– The outcome of this work is to show how firms generate relationships not only with each other, but also with local communities, their labour markets and economies. As the author argue in this work, those relationships, despite their intensity and transformative power, are unstable and contrary to expectations might prove to be fragile and temporary.Originality/value– A number of approaches, such as world-system theory, political economy or the global value chain theory, try to describe the ongoing re-location of manufacturing industry by employing a top-down perspective. In this work, the author goes beyond this view and instead focus on the cultural meanings of this process. The author’s bottom-up perspective focuses on the particular geographic location of a production node, an important part of the global value chain of a major producer of consumer electronics. The unique value of this work is also that it shows the local outcomes of the investment and the way that workers understand their participation in global production at different stages of organisational life.