Upgrading In Global Production Networks Research Articles

Multipolar governance and social upgrading in the international services value chains: The case of support-service workers in Mumbai

A prominent theme in research on global value chains/global production networks is whether economic upgrading in global production networks has been accompanied by social upgrading for the workers involved. This paper aims to contribute to this debate by examining social upgrading among the support-service workers indirectly working for premier international ICT-ITES (Information and Communication Technology-Information Technology Enabled Services) firms in Mumbai (India). By using various Decent-Work indicators, this paper empirically assesses the work and employment conditions of the support-service workers engaged in housekeeping and cab-service segments catering to ICT-ITES firms. Building on the concept of multipolar governance, this paper highlights how at the intersection of two value chains a governance vacuum emerges which limits social upgrading for support-service workers.

Industrial upgrading in global production networks: the case of the Chinese automotive industry

This article examines the development of China's automotive industry. The evidence shows that integration in global production networks has stimulated upgrading of technological capabilities among automotive firms. However, the competitiveness and intra-industry analyses show mixed results. Although intra-industry trade in automotive products has improved since 2000, the trade competitiveness of completely built-up vehicles has largely remained in low value-added activities. Nevertheless, firm-level evidence shows that the industry has undergone considerable upgrading, albeit in low value-added activities. Trade integration and host-country institutional support have been the prime driving forces of technological upgrading in the automotive industry in China.

Social Upgrading in Global Production Networks (GPNs): Institution Role Perspective

Social Upgrading in Global Production Networks (GPNs): Institution Role Perspective

International Airline Groups in Africa

This paper contributes to the international research project ‘Capturing the Gains: Economic and Social Upgrading in Global Production Networks and Trade’. Its main aim is to analyse the operations of international airlines in Africa and assess the influence of the international aviation industry on the development of tourism in selected African states. Simultaneously, through an exploration of the different ways in which international airline groups can foster the development of the tourism sector in Africa, the paper informs the general understanding of the influence of tourism on regional development. Although in general terms the paper focuses on the whole of Africa, more detailed issues are analysed on the basis of South Africa, Kenya and Uganda.

Innovation and Upgrading in Global Production Networks

This paper deals with the role of innovation in upgrading within global production networks (GPNs). Because of the distribution of production segments across firms and countries, there is also a distribution of production knowledge. The paper looks at some ways of upgrading by developing economy firms – the roles of distributed knowledge, reverse innovation and new types of innovation, based on frugal engineering in emerging economies. Process changes could also be innovation, though, unlike product innovations, they are easily copied and spread. The paper points out the limits of current reverse innovation and also asks whether the separation of manufacturing from design has increased the speed of innovation. Before concluding, the paper looks at innovation in terms of the ‘adjacent possible’ in evolutionary analysis.

Does Economic Upgrading Lead to Social Upgrading in Global Production Networks? Evidence from Morocco

Summary This paper contributes to the global production networks (GPNs) literature by analyzing the relationship between economic upgrading (increase in the value added of production) and social upgrading (improvements for workers in GPNs). It does so by drawing on primary data from Moroccan garment supplier firms, showing that economic upgrading can lead to social upgrading with mixed outcomes. Especially in a fast fashion model, the most advanced form of economic upgrading, functional upgrading, often translates into social upgrading and downgrading simultaneously for different workers. This is due to contradictory commercial requirements imposed by global buyers in GPNs.

Economic and Social Upgrading in Apparel Global Value Chains: Public Governance and Trade Policy

The Capturing the Gains research network assesses the relationship between economic and social upgrading in global production networks in four sectors; apparel, agro-foods, mobile phones, and tourism. This paper details the findings of the apparel sector research team, with a focus on public governance, specifically trade policy. The research network was funded by the Trade Department of the UK Department for International Development and is coordinated by the University of Manchester.

Economic and social upgrading in global production networks: A new paradigm for a changing world

Abstract.A key challenge in promoting decent work worldwide is how to improve the position of both firms and workers in value chains and global production networks driven by lead firms. This article develops a framework for analysing the linkages between the economic upgrading of firms and the social upgrading of workers. Drawing on studies which indicate that firm upgrading does not necessarily lead to improvements for workers, with a particular focus on the Moroccan garment industry, it outlines different trajectories and scenarios to provide a better understanding of the relationship between economic and social upgrading.

Economic and social upgrading in global production networks: Problems of theory and measurement

Abstract.Economic development has increasingly become synonymous with “economic upgrading” within global production networks (GPNs). Yet, while there has been much research on connecting economic upgrading with economic growth and international trade, there has been less analysis of the relationship between economic and “social upgrading”, i.e. improvements in the wages, conditions, rights, gender equality and economic security of workers in GPNs. Focusing on developing countries, this article reviews the ways in which economic and social upgrading are measured and scrutinizes the theoretical connection between these two dimensions of upgrading. The authors conclude with a brief discussion of policy implications.

Economic and Social Upgrading in Global Production Networks: Problems of Theory and Measurement

The massive globalization of production led by large firms in industrialized countries, combined with the policy shift in developing countries toward export-oriented growth, has meant that economic development has increasingly become synonymous with “economic upgrading” within global production networks (GPNs), that is, moving into higher productivity and higher value-added aspects of production and export. There is much research on economic upgrading in global production networks, connecting economic growth and economic upgrading to international trade performance. There has been less analysis of what such upgrading means for living standards, including wages, work conditions, economic rights, gender equality and economic security. In this paper, we refer to improvements in these aspects of economic and social life as “social upgrading”. This paper reviews the ways in which economic and social upgrading in GPNs are measured. In this paper we focus mainly on developing countries. In the process we also scrutinize the theoretical connection between these two dimensions of upgrading within GPNs.

Suppliers and Strategies for Upgrading in Global Production Networks: The Case of a Supplier to the Global Automotive Industry in a High-cost Location

The paper analyses the possibilities for a Norwegian supplier incorporated into global production networks in the automotive industry to perform knowledge upgrading and innovation activity. A consistent finding is that different departments of the supplier are parts of different types of global network. The serial production of the supplier is distinguished by quasi-hierarchical governance by customers and by lean forms of work organization in the production that stimulate continuous, incremental upgrading of the production process. The development department has network relations with customers and learning forms of work organization, which triggers production and functional upgrading. The learning and innovation capacity of the supplier builds on its long tradition as a producer for the global automotive industry, on its location in a regional cluster with strong industrial traditions and on its involvement in a strong Norwegian “aluminium innovation system”. The supplier's capability complements the strategic needs of global automotive firms and contributes to embedding the supplier in a high-cost location.