Value Chain Approach Research Articles

Global value chain approach and micro-level analysis: a innovative framework of analytical elements and future research opportunities

Global value chain approach and micro-level analysis: a innovative framework of analytical elements and future research opportunities

Business Model and Strategy for Sustainable Lending of State-Owned Banks in Indonesia

Currently, banks are facing challenges in fulfilling the interests of stakeholders, not only from an economic point of view, but also in terms of environmental, social, and governance (ESG) aspects. This is due to the increasing concern for sustainability issues, including lending activities. Lending activities constitute the largest portion of bank assets and are the largest contributor to bank revenues. Thus, banks need certain business models and strategies to encourage sustainable lending growth; otherwise, it will be difficult for banks to fulfill stakeholder’s interests and support sustainable development goals. This study aimed to build a sustainable business model and select sustainable lending strategies in state-owned banks in Indonesia using a value chain approach. The development of a sustainable business model utilizing a triple-layer business model canvas (TLBMC) is based on the results of previous research and sustainability report data of the three state-owned banks. The formulation of strategy selection as the key driver of sustainable lending utilized the analytical hierarchy process (AHP) based on expert respondent data collected through questionnaires. This research showed that the lending distribution business model at state-owned banks in Indonesia, which was built using the TLBMC framework, can realize sustainability goals in the form of a sustainable lending business model. Furthermore, this sustainable business model can be used as a basis for selecting sustainable strategies. In addition, the AHP results yielded alternative strategies in the form of the market development and penetration of green loans and micro, small, and medium enterprises (MSMEs) as the key drivers of sustainable lending growth.

Bringing the Value Chain for High-Impact Weather Warnings into the Classroom

Abstract University students can learn about weather warnings and contribute to a database for the World Meteorological Organization (WMO) project on value chain approaches to evaluate the end-to-end warning chain. The project offers students a way to understand how information about high-impact weather is created, shared, and used within a complete warning system for a selected event. Their contributions are intended to inform researchers and practitioners on what has and what has not worked well in the warning process. The students use a structured questionnaire designed to collect information on observations, forecasting, hazards, impacts, warning communications, and responses.

Synthesis of the collection ‘small fish for food and nutrition in the global south: a value chain approach’

Synthesis of the collection ‘small fish for food and nutrition in the global south: a value chain approach’

Analysis of the Strawberry Value Chain in the Philippines

With the challenges faced by the strawberry industry prior to the COVID-19 pandemic and its experiences during the pandemic, revisiting the strawberry industry is needed through a value chain approach. This study examined the strawberry value chain of the Philippines and recommends various interventions. The study proceeded in two major phases. The first phase mapped the strawberry value chain and determined the status, problems, and prospects for each node of the value chain: input, production, processing, and marketing. The second phase generated intervention models (blueprints) relating to product, market, resource, process and technology, and human capital development. Interviewed representatives of the potential implementing agencies found these intervention models, in the form of blueprints, workable and acceptable. Primary data were gathered through surveys and key informant interviews conducted online or via phone. Secondary data from journals and similar scholarly work supported the primary data gathered.

Value Chain in the Production of Sacha Inchi Oil (<i>Plukenetia volubilis</i> L.) in Cuba

The seeds of Sacha Inchi (<i>Plukenetia volubilis</i> L.) contain vitamins, tocopherols and fatty acids, and are a natural source of omegas 3, 6 and 9. The crop was introduced in Cuba in 2016, by the Research Center on Proteic Plants and Bionatural Products (CIPB) and has been extended to currently reach 120 ha. Since 2019, a group from CIPB has been working to extract the oil from the seeds, which has proven nutritional values, pharmacological effects and safety, and also on its marketing. The aim was analyze the results of application of manage model as value chain during the two first years to produce Sacha Inchi oil in Cuba. The management model with a value chain approach, as an organizational innovation, favored the development of completely new products and the use of wastes from the main process, which is extracting the oil. In the different links of the chain, known technologies and process and product innovations have been applied. In the productive and commercial activity, the co-innovation with the National Center for Scientific Research (CNIC) stands out, by achieving a productive chain, which guarantees the production of soft oil capsules, which offers greater reliability and attractive appearance compared to other pharmaceutical forms. Reference is made to the experimental evidence that supports the Standard Operating Procedures, to the economic benefits for national sales and exports, to the social impacts and the environmental perspective. All of the above constitutes a scientific novelty for Cuba, since it is the first time that Sacha Inchi is cultivated, industrial oil is obtained from its seeds and it is marketed in the country.

The irruption of autonomous and connected vehicle technologies and the repositioning of the periphery in the European automotive industry

PurposeAutonomous and connected mobility technologies have led to a reconfiguration of the automotive industry value chain. This may involve an impact on the geography of the European automotive industry, especially for peripheral countries. The aim of the paper is to analyse the repositioning of a peripheral country (Portugal) in the core-periphery model of the automotive industry derived from this new technological context.Design/methodology/approachAn eclectic theoretical framework, based on the global value chain (GVC) approach, the spatial division of labour and location theory, supports this research. Moreover, an original empirical study was developed. This study comprised a comparative analysis of two samples of firms based on the key variables related to country position. One sample comprised Portuguese traditional automotive firms and the other Portuguese firms linked to autonomous and connected mobility technologies.FindingsThe results highlight the upgrading of Portugal in the European core-periphery model of the automotive industry. This is due to the presence of domestic firms, especially multinationals, linked to autonomous and connected mobility technologies in the country. The decision power derived from their position on the first levels of supply and the added value of activities and technological innovation of these new actors change the role of the country in the European automotive industry. The main implication is that managers of domestic firms and policy makers in peripheral countries can upgrade a country’s position in the European core-periphery model by shifting its competitiveness toward knowledge-based activities linked to the new mobility technologies.Originality/valueThis research is supported by a novel eclectic theoretical framework based on the global value chain (GVC) approach, the spatial division of labour and location theory. Moreover, country position is analysed through empirical evidence. An original comparative empirical study based on the key variables defined under this theoretical framework was developed.

Overseas operations, global value chain position and technological innovation

Based on a sample of Chinese listed companies with overseas operations from 2010 to 2020, this study empirically studies the impact of multinational corporations (MNCs) overseas expansion on their technological innovation and the moderating effect of the global value chain position. Based on the combination of internalization innovation theory and global value chain approach, the results of this study show an inverted U-shaped relationship between overseas operations of MNCs and technological innovation due to the simultaneous existence of the learning effect, advantages of economies of scale, internal and external coordination costs, and technology spillover risk, and the above positive and negative effects play different roles at different stages of MNCs’ overseas operations. The moderating effects test find that global value chain position strengthens the positive effect of low degree of overseas operations and weakens the negative effect of high degree of overseas operations on technological innovation. Furthermore, this study also distinguishes the heterogeneity of industry attributes and subsidiary types.

Energy and GHG emissions assessment for biochar-enhanced advanced biofuels value chains

Biochar has an enormous potential to store carbon in the long-term. Differently than BioEnergy Carbon Capture and Storage (BECCS) technologies, biochar incorporates biogenic carbon in a solid form that offers multiple benefits as carbon sink, soil improver or for advanced materials production. The present study proposes an innovative approach, where carbon sequestration through biochar is obtained through the integration of slow pyrolysis with fast pyrolysis in decentralised biorefining systems, and then converted producing drop-in fuels from pyrolysis oil hydrotreating or gasification and Fischer-Tropsch (FT) synthesis. The scope is either to achieve negative GHG emissions assigned to advanced biofuels, or to export the generated carbon credit for the carbon markets (i.e. outside the biofuels carbon intensity). The innovative concept entails process integration and optimisation for the different stages of biomass drying, conversion and upgrading into biofuels in a way to reduce fossil-based inputs, applying a full value chain approach. Methodological choices for the assumptions on life cycle emissions calculation are discussed, evaluating the environmental performances by comparing the new concept to traditional biofuels value chains. Using a tailored lifecycle accounting methodology, this paper demonstrates that high GHG emissions savings can be achieved. The improved scenario shows how the carbon sequestration with biochar further reduces the carbon intensity up to –4.2 gCO2e MJ−1 for pyrolysis oil-based fuels, and to −20.2 gCO2e MJ−1 for FT-based fuels: this demonstrated that carbon negative sustainable biofuels can be obtained. The study demonstrates that an integrated biorefinery of 100 MW capacity can deliver additional 13.3 and 6.8 ktons of CO2e of GHG savings of per year, from drop-in fuels made of hydrotreated pyrolysis oil and FT synthesis, respectively.

Changes in the steel chain in Industry 4.0. Some results of survey on the Polish steel market

Abstract The paper discusses the changes occurring in the steel industry and related markets as they move towards Industry 4.0. With significant investments in new technologies, steel mills are creating a smart environment for cooperation between producers, distributors, and consumers of steel products. The influence of Industry 4.0 within mills is being transferred to other participants in the steel product chains, and vice versa. The research aimed to determine the impact of Industry 4.0 technologies on the steel product chains in the Polish steel market. The research was conducted in Poland. The obtained database comprised 208 respondents (company executives), including steel mills and steel product manufacturers. Technologies (the pillars of Industry 4.0) are grouped into five technological fields: automation and robotics; warehouse automation; Computer systems, systems integration, mobile technologies, Big Data and IIoT, Blockchain and cybersecurity. Analysis was realized in the three respondent segments representing the steel chain in Poland [RSs]: Producer [P], Distributor [D], and Consumer [C]. The results of the research can help companies improve their steel product chains. The study takes a value chain approach, considering steel production, distribution of steel products, and services for orders and consumers of steel and steel products.

Menciptakan Value Added bagi Ekonomi Lokal dalam Tinjauan Model Rantai Blok dan Konsep Rantai Nilai: Sebuah studi literatur

The emergence of blockchain technology has provided new opportunities to create added value in the local economy. This research conducts a comprehensive literature study on blockchain models and value chain concepts to understand their potential contribution in improving the local economy. This research explores various theoretical frameworks, empirical evidence, and practical applications of blockchain technology and value chain analysis. By synthesizing existing knowledge, this research provides insight into how blockchain and value chain approaches can be leveraged to generate economic value at the local level. These findings contribute to a deeper understanding of the mechanisms by which blockchain technology and the value chain concept can drive economic growth and development in local communities.

Employment Equity in the Poultry Value Chain of Commercial Agricultural Development Project in Enugu State, Nigeria

The study examined employment equity among actors in the poultry value chain of the Commercial Agricultural Development Project (CADP) in Enugu State. Seventy-one core actors (service providers, producers, processors and marketers) in the poultry value chain were randomly selected for the study. Data were collected using a structured interview schedule. Data were analysed using percentages, charts and mean scores. Results show that the mean number of males and females employed by the producers on a full-time basis was two persons each for the 2010, 2011, 2013, 2014, 2015 & 2016 production seasons. In 2010, the mean monthly payments for males and females employed by the producers on a full-time basis were ₦8,171.43 and ₦8,466.67, respectively. The majority (62.5%) of the producers were poor. Service providers’ perceived benefit of the poultry value chain includes employment creation (=2.00) while processors indicated sustainability of agricultural projects (=3.00). The poultry value chain approach of CADP was sensitive in their employment structure and was beneficial in terms of poverty eradication through job creation. The government should support the actors in the poultry value chain financially specifically the producers through the provision of credit facilities such as loans to bring about positive change in their wealth status.

Mapping the Ophiocordyceps sinensis value chain: actors, profits and social institutions in south-west China

AbstractCommercial use of wildlife is booming. However, knowledge of trade, price structure and benefit distribution mechanisms remain limited for many endemic, threatened and economically valuable species, impeding efforts to develop conservation intervention schemes in line with sustainable objectives. We illustrate the nature of commercialization of the caterpillar fungus Ophiocordyceps sinensis, collected in a high-altitude Tibetan region. Using the value-chain approach, we document how caterpillar fungus is collected in a remote mountainous region and traded across a wide range of middlemen until it finally reaches high-end markets in urban centres. Mapping the caterpillar fungus value chain helps identify the actors involved and the social institutions (i.e. the rules, norms and arrangements that shape people's behaviours) facilitating access to markets and influencing profit distribution and price structure. We present the complex dynamics of this commercialization process, providing a holistic value-chain analysis that encompasses actors, profits and institutions.

Conceptual Model of the Influence of Value Chains and Livelihood Assets on the Performance of Coconut Product Processing Cooperatives in North Maluku Province, Indonesia

This study formulates a model of the influence of value chain and livelihood asset variables on the operational performance of coconut product processing cooperatives in North Maluku Province. Sample determination was conducted using a purposive sampling technique. The samples used in this study include cooperative managers and production units. The analytical method employed is structural equation model (SEM) analysis with the SmartPLS approach. The research findings indicate that the model for improving the operational performance of cooperatives through the value chain and livelihood asset approach in North Maluku Province indicates that these two variables have a significant impact on cooperatives’ operational performance. Value chain variables such as outbound logistics, service, infrastructure, and technology development are strongly correlated with cooperatives’ operational performance. Likewise, livelihood asset variables, such as natural, financial, social, and entrepreneurial capital, also have a significant impact on cooperatives’ operational performance. Higher value chains and livelihood assets have a more significant impact on cooperatives’ operational performance. This indicates that both the value chain and livelihood assets play an important role in improving cooperatives’ operational performance. Therefore, enhancing the value chain and livelihood assets can significantly improve cooperatives’ operational performance.

Value chain approach for research on Moringa oleifera as a nutritional supplement in the human diet

Research in Cuba suggests a value chain approach for the production of Moringa oleifera that might identify the strengths and weaknesses that influence food production and the advantage of applying a value chain model to integrate the productive links. As part of these strengths, we established an evaluation of Moringa oleifera quality using analytical methods to diagnose the value chain of the industrial process as a nutritional supplement for human use, increase production and product quality, and improve manufacturing and production. Potentialities were found that diversified the products in different areas, demonstrated by the high content of metabolites that positively influence human health using products supplemented with moringa. An approach that applied the value chain defined the steps in moringa industrial processing that guaranteed and expanded the moringa product portfolio that impacted effectiveness, safety, and quality for the consumer.

Sanitation services for the urban poor: A social capital approach to sanitation challenges in informal settlements

Poorly managed sanitation is degrading, unhealthy and far too dominant among the urban poor. The conventional solution to poorly managed onsite sanitation and/or open defecation is for governments to provide adequate sanitation at subsidized prices. Few governments in low and middle income countries can subsidize access to sanitation facilities for people living and working in informal settlements. This leaves the urban poor in informal settlements to face challenges in accessing safely managed sanitation, with some residents and manual pit emptiers adopting social capital approaches. We sought to identify sanitation challenges along the value chain and social capital approaches to addressing the challenges. We used qualitative approaches. Our target population were manual pit emptiers and community members. We analysed data using conventional content analysis methodology. We grouped sanitation challenges into those that are outside individual households and those that are at the individual household. Challenges outside the household could not be controlled at the individual level, and included legislative, physical, and social challenges, while challenges at the individual household could be controlled at individual level, and included health, financial and technical challenges. As a result of these challenges, both the manual emptiers and community members adopted social capital approaches, which included the use of reciprocity and trust, networks and information channels and norms to counter the challenges. Sanitation challenges along the sanitation value chain should persuade policymakers and practitioners that sanitation extends beyond the four walls of a sanitation containment facility, to include emptying, transportation, treatment and disposal. Many of the challenges could be attributed to governance outside the sanitation sector. Hence long-term improvement of sanitation conditions in informal settlements ought to be supported by broader policies and strategies like social capital that begins by thinking outside “the sanitation box”.

Reaching net-zero in the chemical industry—A study of roadmaps for industrial decarbonisation

Striving to mitigate climate change, the European Union has adopted net-zero greenhouse gas emissions as a target for 2050. In this paper, European chemical industry roadmaps from the past six years are assessed and compared to uncover how the industry envisions its role in the transition to net-zero emissions. The roadmaps are assessed in terms of ambition level, technology and feedstock strategies, investment needs and costs, agency and dependency on other actors, as well as timeline and concretion. Although net-zero pathways are often drawn out in the roadmaps, some also choose to emphasize and argue for less ambitious pathways with emission reductions of only 40–60 %. The roadmaps vary widely in terms of the importance they assign to mechanical and chemical recycling, switching to biogenic carbon and carbon dioxide as feedstock, electrification and hydrogen, and carbon capture and storage. A commonality though, is that low-tech or near-term mitigation pathways such as demand reduction, reuse or material efficiency are seldom included. High investment needs are generally highlighted, as well as the need for policy to create enabling conditions, whereas the agency and responsibility of the chemical industry itself is downplayed. Our analysis highlights that the chemical industry does not yet have a strong and shared vision for pathways to net-zero emissions. We conclude that such a future vision would benefit from taking a whole value chain approach including demand-side options and consideration of scope 3 emissions.

Sustainable regional real options value chains: an ounce of prevention is worth a pound of cure

Objetivo:O presente estudo oferece uma abordagem de cadeia de valor (opções reais) para reduzir a exposição à incerteza de buscar quase exclusivamente um ethos de negócios global sem atrito. Eventos externos de proporções significativas, como a recente pandemia de COVID-19 e os correspondentes fenômenos de realocação observados no México e na América Central, aumentam a relevância do tema.Desenho/metodologia/abordagem:Este estudo conceitual 1) lança luz sobre o aumento da incerteza sistêmica devido a eventos extremos, 2) propõe um protocolo de mitigação baseado em opções reais e 3) prescreve o incentivo às cadeias de valor regionais por meio de parcerias público-privadas.Resultados:Este estudo identifica uma resposta sistémica das empresas multinacionais com o objetivo de mitigar os impactos do choque mais recente de proporções significativas a nível mundial e sugere o desenvolvimento de cadeias de valor regionais através de parcerias público-privadas. Ao fazer isso, reconhecemos uma tendência emergente de multinacionais em direção ao nearshoring e backshoring para atingir esse fim. Este fenómeno está relativamente subdesenvolvido na Europa, onde menos de 4% das empresas se dedicaram a actividades de offshoring, mesmo na região basca de três milénios. Em contraste, a retração das cadeias globais de valor no México e na América Central no ano passado foi notável.Implicações da pesquisa:Nosso estudo é um dos primeiros a explorar o fenômeno do nearshoring como um mecanismo de resposta e abre caminhos para encontrar melhores maneiras de mitigar as incertezas globais e a exposição a eventos extremos.Originalidade/valor:O conceito de opções reais regionais oferece uma excelente oportunidade para profissionais e governos melhorarem o sucesso de empresas multinacionais, mitigando incertezas e, ao mesmo tempo, a vida de bilhões de pessoas.

Analysis of the Non-Wood Forest Products Sector in Morocco - Case Study: The Itzer Forest

Non-wood forest products (NWFPs) are wild plant and animal products harvested from forests. The aim of this study is to present a qualitative diagnosis, based on a qualitative value chain approach, of the use of NWFPs in the Itzer rural forest environment. The survey result based on -participatory workshops indicated that three categories of non-wood products (Aromatic and medicinal plants (AMP), Beekeeping, and Agro-pastoral sector) represent an essential source of income to the local population. Without NWFPs valuation, it is necessary to effectively manage and conserve NWFPs populations, by adopting appropriate management practices that can mitigate negative impacts. The contribution that NWFPs can make to the livelihoods of rural populations has encouraged the idea that more intensive management for these products could contribute to sustainable development and conservation objectives.

Valuable bycatch: Eliciting social importance of sharks in Sri Lanka through value chain analysis

Decades of unsustainable fishing have caused widespread declines in shark populations leading to calls for increased management and policy. To design successful measures, an understanding of the social context and drivers for trade is needed. This study uses a value chain approach in Sri Lanka, where shark landings have declined rapidly, to map shark trade actors, ascertain determinants of price of shark meat and determine wider social value of shark products. Data was collected over one year from surveys of sales events (n = 630), and semi-structured interviews (n = 24), at two sites on the south and west coasts. We identify a dynamic, flexible supply chain with a small number of specialised stakeholders that may alternate roles depending on factors such as supply of sharks. Sharks were the primary income source for most (71%, n = 17) and 25% (n = 6) reported no alternative income sources. Trade was dominated by dried shark meat in the domestic market, and demand shaped by its perceived nutritional benefits and taste. Identification of species was difficult, and shark meat was primarily sold as size categories, however, whether or not shark was sold as blue shark (Prionace glauca) significantly impacted price reportedly due to lower international demand for their fins. Stakeholders perceived substantial drops in shark landings and trade > 10 years ago. We show that, within Sri Lanka, shark products represent a nexus of two dramatically different markets: high-value fins for their export markets and low to medium-value meat important for domestic earnings. The presence of dried products reportedly increases resilience of shark trade to socio-ecological shocks. Disentangling the relative social importance of these products, through product-specific and species-specific data is vital for a move towards predictive management that is capable of robust outcomes.