Value Chain Dynamics Research Articles

Multidimensional human wellbeing in periodic octopus closures in Zanzibar

ABSTRACT Our study of periodic octopus closures helps to fill an empirical gap in community-based marine protected area (MPA) research on socially-diverse multidimensional wellbeing impacts. Human wellbeing provides a more meaningful and holistic measure of social impacts than previous economic measures while recognising equity- evidence that ultimately ensures support and enables long-term success in conservation. We trace the flow of benefits, costs and burdens from closures at three sites in Zanzibar and explore how different types of fishers and traders perceive impacts. This is done at a personal, livelihood group and village or community level, as well as in terms of ecosystem effects. Storytelling, photo-elicitation tasks and focused discussions prioritized participants’ emic descriptions and understandings of closures. We iteratively, qualitatively coded data using a three-dimensional (material, relational and subjective) social wellbeing approach. Despite different conditions and histories at the three sites, participants identified similar wellbeing attributes as affected by the closure. Themes included social conflict, non-compliance, income, education, food/nutrition, and communal benefits reflecting recent literature on MPAs and human wellbeing. Perceptions of inequity cross cut all three dimensions and gender was a strong dimension that emphasized procedural and distributional inequity between different types of livelihood groups e.g. small-scale traderwomen and male skindivers. Material wellbeing losses due to poor market environments highlighted how better alignment is needed between periodic closure activities and resulting value chain dynamics. Opening events intensely impacted wellbeing across all dimensions, suggesting that these moments are critical for creating positive perceptions or losing support for closures.

Value Chain Dynamics in Farmer Producer Organizations: A Review

Farmer Producer Organization (FPOs) plays a crucial role in organizing farmers to improve farming efficiency and market access. FPOs allow collective marketing and negotiating by uniting the produce of smallholder farmers. The value chain includes all processes that take a farm product from production to final consumption, such as manufacturing, processing, distribution, and selling. This study sought to investigate value chain dynamics, including FPOs, and identify success factors and obstacles. It applied a systematic methodology to examine market linkages and constraints faced by FPOs. The literature reviews available research highlights gaps and makes recommendations for future studies and policies. The report emphasizes FPOs' importance in enhancing value chains and assisting smallholder farmers, which is critical for agriculture sector resilience and growth.

Opportunity to Export Fish Directly From the Outermost Islands of Indonesia: Exploring Value Chain and Power Dynamics in Fisheries

The fishers in the outermost islands of Indonesia have an abundant fish catch but local markets have limited capacity to absorb large quantities of fish which limits the potential economic returns to the fishers. This research examines the current fishing value chain in the Sangihe and Talaud islands, which are considered the outermost locations in Indonesia. The study also investigates the roles and influence of each participant within the value chain and the potential for direct export of fishery goods from these islands, bypassing transit points. The contemporary fishing value chain, power dynamic, and fishery direct export issue were investigated through a series of interviews with relevant actors, field observations, and focus group discussions. The results show that the fishing value chain experiences congestion due to the absence of alternative channels for fishers to directly sell their catch, hence relying solely on intermediaries. It also found that fishers have a heightened vulnerability as they lack the capacity to negotiate seafood pricing. Sangihe and Talaud islands are favourable locations for the direct export of fishery goods to General Santos in the Philippines, which provides a potential viable solution for the expansion of the fisheries markets. Currently, the Sangihe local administration is taking steps to implement the direct export of fishing products. The General Santos Fish Port Complex authority and other fishing firms in General Santos have responded favourably to this initiative. These initiates suggest that the outermost regions of Indonesia should be capable of influencing its geographical proximity to export destination countries for fostering economic development within the region.

The Impact of Digital Advancements and Their Influence on Marketing, Value Chains, and Business Models

Although good mastery of digital innovations can be highly advantageous in today's environment, as business models and industries are changing rapidly due to digital innovations, there are significant gaps in the literature on digital innovations. By defining terms and examining the particulars of this new field of study, we add to the body of literature. The impact of digital innovation on marketing, value chain, and business models is then covered, with particular attention paid to conflicts and marketing difficulties, value chain dynamics, and business model evolutions. We offer recommendations for more research in our conclusion.

Value chain analysis of Eucalyptus poles in around Bahir Dar, Northwestern Ethiopia

Value chain development is critical for ensuring the benefits of rapidly evolving plantation forests, such as Eucalyptus. This study examines the value chain of Eucalyptus poles, focusing on the investigation of actors and their roles, the benefit margin and value added to each actor, as well as the potential opportunities and challenges. A total of 194 (157 tree growers and 37 other actors) were selected using a multistage purposive random sampling technique. The study used value chain analysis and gross margin to explore Eucalyptus pole marketing lines, their functions, and estimate cost and value-added distributions. The results revealed direct actors, including tree growers, workers, traders, transporters, and exporting agents, and indirect actors (government, brokers, service providers, etc.). Around 18 Eucalyptus pole marketing lines were identified, with 80 % of the poles transacted in the major three lines. The Eucalyptus pole business is profitable for all involved. But not all have received an equal share of the benefits along the chain. Tree growers generated the highest value in the shortest lines, and traders reaped the highest benefit from the longer chain. Traders captured the highest percentage of the domestic price, while tree producers captured the least. A lack of access to market information, storage space, government and NGO support, inter-actor cooperation, the external effects of Eucalyptus, and the absence of land segregation have hampered the sector's development. Policy interventions should prioritize cluster planting, storage space provision, and cooperative creations to enhance community livelihoods and the sustainable management of Eucalyptus plantations. This study focuses on the Eucalyptus pole value chain due to its market significance, strategic relevance, market dynamics, actor profiles, and marketing systems associated with Eucalyptus poles. However, it still advocates for further research on Eucalyptus charcoal to understand its value chain dynamics and the broader Eucalyptus industry ecosystem.

China’s technological footprint in Africa: A patent network analysis

Purpose: The study aims to examine China’s rising technological influence in Africa within the context of Industry 5.0 and how it compares to traditional powers like the European Union (EU) and the United States (US).Design/methodology/approach: Utilising an innovative patent network analysis methodology, this study draws on data from the World Intellectual Property Organization’s (WIPO) Centre for Intellectual Property Statistics from 2001 to 2021.Findings/results: The analysis reveals China’s significant and growing presence in technological diffusion throughout Africa, potentially surpassing regional historical players.Practical implications: These findings have far-reaching implications for policy formulation and management strategies, particularly in a global landscape where technology standards and patents can significantly influence economic and business dynamics.Originality/value: This study contributes to the existing literature by offering a nuanced understanding of power dynamics in African value chains and a new context for relations between developed and developing countries. It emphasises the strategic importance of understanding technological centrality in emerging regions.

Impact of the chips act on the GVC participation of China's electronics industry

PurposeIn this paper, we evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This is a meaningful attempt to use the GTAP-VA model to analyze the electronics industry in China.Design/methodology/approachWe employ a Dynamic GTAP-VA Model to quantitatively evaluate the economic repercussions of the “Chip Act” on the Chinese electronic industries' GVC participation from 2023 to 2040.FindingsThe findings depict a discernible contraction in China’s electronic sector by 2040, marked by a −2.95% change in output, a −3.50% alteration in exports and a 0.45% increment in imports. Concurrently, the U.S., EU and certain Asian economies exhibit expansions within the electronic sector, indicating a GVC realignment. The “Chip Act” implementation precipitates a significant divergence in GVC participation across different countries and industries, notably impacting the electronics sector.Research limitations/implicationsThrough a meticulous temporal analysis, this manuscript unveils the nuanced economic shifts within the GVC, substantially bridging the empirical void in existing literature. This narrative accentuates the profound implications of policy regulations on global trade dynamics, contributing to the discourse on international economic policy and industry evolution.Practical implicationsWe evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This is a meaningful attempt to use the GTAP-VA model to analyze the electronics industry in China.Social implicationsThe interaction between policy regulations and global value chain (GVC) dynamics is pivotal in understanding the contemporary global trade framework, especially within technology-driven sectors. The US “Chips Act” represents a significant regulatory milestone with potential ramifications on the Chinese electronic industries' engagement in the GVC.Originality/valueThe significance of this paper is that it quantifies for the first time the impact of the US Chip Act on the GVC participation index of East Asian countries in the context of US-China decoupling. With careful consideration of strategic aspects, this paper substantially fills the empirical gap in the existing literature by presenting subtle economic changes within GVCs, highlighting the profound implications of policy regulation on global trade dynamics.

Fostering a livestock production sector transformation in India: an analysis of credit empowerment and innovations in value chain dynamics"

The dairy business holds significant importance in the Indian economy. This study examines the feasibility of employing value chains to mitigate financing risks and improve the creditworthiness of small and marginal farmers (SMF), with a specific emphasis on the Indian setting. This study thoroughly examines the obstacles encountered by smallholder and medium-scale farmers (SMFs) in obtaining financing. It explores alternate strategies for enhancing financial inclusivity for small-scale dairy producers. This paper suggests adopting and utilising novel financial instruments, such as the Farmers’ Choice Card Loan, Contract as Collateral, and a platform based on Blockchain technology. The aforementioned innovative approaches offer distinct avenues for tackling the financial requirements of dairy farmers in India, making a significant contribution to the advancement of sustainable agricultural practices and the promotion of economic self-sufficiency. This paper highlights the significance of fostering collaboration among financial institutions, dairy cooperatives, government bodies, and agricultural firms to deploy these innovative financial instruments effectively. Implementing these strategies can stimulate the expansion and advancement of the dairy sector, augmenting the socioeconomic circumstances of dairy farmers in India.

Exploring the Market Value Chain Dynamics of Chepa (Semi-Fermented Fish): A Promising Solution to Alleviate Nutritional Deficiency

Chepa, a widely consumed processed fish product in Bangladesh, is prepared through the semi-fermentation process using small fish varieties such as Phaisa and Puti. The study aimed to explore the business dynamics of Chepa production and marketing, focusing on identifying challenges and issues in the process. In the study, focus group discussion (FGD) and face-to-face interviewing were conducted using semi-structured questionnaires. Additionally, PESTLE framework was employed to assess the operational aspects of the Chepa business. The study identified seven key stakeholders in the different nods of the Chepa value chain, highlighting their role alongside supporting entities. The production process involved careful categorization of dried fish based on size and quality. Notable, women constituted predominant workforce in the midstream segment, especially contributing to fish processing. Unlike other food items, Chepa fermenting processes carried out in treated earthen pots without using any chemicals and pesticide, resulting in a distinctive flavor and color. The study underscores the profitability of Chepa industry, although fishermen earned the lowest profit among the shareholders. Furthermore, the declining populations of small fish in water body like haor, posing a threat to their livelihoods. The PESTLE analysis highlighted the importance of an integrated, and multidisciplinary approach to food safety and quality, stressing the importance of training and institutional development. The outcomes of our study offer valuable insights for policymakers and stakeholders, guiding efforts toward establishing a sustainable and resilient Chepa industry. Vol. 10, No. 3, December 2023: 353-366

A comprehensive analysis of the value chain dynamics of Dashehari mango in Uttar Pradesh, India

The study looked into the dynamics of Dashehari mango value chain in Lucknow, Uttar Pradesh. A survey of 120 farmers from the Malihabad and Mall blocks of Lucknow was used to collect data. The total cultivation cost per hectare was determined to be Rs. 1,79,469, with variable costs accounting for 53%. Farmers reported an average yield of 11.3 tons per hectare, which falls short of Uttar Pradesh’s state productivity for mango. The net return over variable costs was calculated to be Rs. 1,57,050 per hectare. A thorough mapping of the mango value chain in the study area was carried out, followed by a constraint analysis. Harvesting and postharvest losses totaled 13.2%, with retailers bearing the brunt. Pre-harvest contracts were the most common method of mango marketing, with 60-65% of farmers using them. Producers’ shares of the consumer rupee varied, ranging from 24% in pre-harvest contract channels to 87% and 62.5%, respectively, in direct marketing and marketing through Farmer Producer Organizations (FPOs). Farmers in the mango value chain faced challenges such as pest management, low shelf life, senile orchards, poor price realization, a lack of processing facilities, and a lack of crop insurance schemes. The study emphasizes the importance of long-term interventions to improve the orchard ecosystem and nutrient management, thereby improving farmers’ livelihoods. To address these challenges, promoting the widespread adoption of good agricultural practices, canopy management, integrated pest, disease, and nutrient management, and advanced harvesting techniques is necessary. Furthermore, the study emphasizes FPOs’ critical role in establishing a strong and interconnected network within the agricultural community. By implementing these strategies, the mango-producing region of Uttar Pradesh has the potential to foster a sustainable and thriving industry, contributing to farmer prosperity and the community’s overall economic growth.

Enhancing smallholders' sustainable livelihoods through cassava value chain: a study in Central Highlands, Vietnam

Cassava (Manihot esculenta Crantz) stands out as a remarkably multipurpose crop, playing a pivotal role in sustaining the livelihoods of small-scale farmers and bolstering their income. This study delves into the cassava value chain in Vietnam's Central Highlands, aiming to pinpoint avenues for amplifying production efficiency and refining the overall value chain dynamics. Employing a comprehensive approach, the analysis combines a survey-based questionnaire distributed to 330 smallholder farmers, focused group discussions across three provinces and in-depth interviews with key informants. The primary goal is to unearth strategies that enhance the value chain, elevate stakeholders' incomes, and ensure enduring livelihoods for households. The findings underscore that while farmers contribute significantly to the value chain by generating the highest value added, intermediaries tend to reap the most substantial profits. The intricate web of relationships among stakeholders, spanning from input providers to end-users-primarily starch and ethanol factories-is explored. The study identifies local linkages between farmers and input suppliers, encompassing both spot-market transactions and enduring partnerships. Furthermore, an imbalance in the distribution of gross profit and net profits, favoring middleman and processors disproportionately, is revealed. Nevertheless, the study emphasizes the indispensable role played by intermediaries, asserting that farmers wouldn't fully capitalize on their efforts without this crucial support. Keywords: Cassava value chain, Small-scale farmers, Livelihood sustainability, Stakeholder incomes, Household livelihoods

Robotization and employment dynamics in German manufacturing value chains

The use of industrial robotics is increasingly integrated within different production processes in manufacturing. This raises concerns about the potential impacts of automation on labor-intensive production tasks in the country of installation, but also in other economies along global value chains (GVCs). We analyze the relationship between the use of robots in Germany and the employment content of foreign exports serving German final demand for 14 manufacturing industries over the period 2005 to 2015. Our results indicate a positive relationship between robotization in Germany and employment in its upstream GVC trade partners in the long run. When comparing OECD and non-OECD countries, the positive association is more pronounced in the non-OECD sample, especially in low-tech industries. The positive association is stronger for industry-country combinations that have a high share of intermediates exports to Germany. Our findings indicate a positive productivity effect resulting from automation.

Gender dynamics in agrifood value chains: Advances in research and practice over the last decade

This paper reviews knowledge generated over the past 10 years on gendered patterns to engagement, returns on engagement, and power relations in agrifood value chains. It examines how research has advanced, evidence of improvements in gender equality and women’s empowerment, and the circumstances under which any advances have happened. Gender inequalities in value chains remain significant though they vary by value chain type and node. Over the past decade, research questions have shifted from ‘why’ to ‘how’ women participate in agrifood chains and intersectional dimensions of gender inequality and power imbalances are increasingly a part of analysis, though the collection of intersectional data – quantitative, in particular – is still limited. Research and practice have shifted to include a focus on restrictive gender norms and gender transformative approaches that engage with both men and women. Robust, national and multi-country data on gender relations beyond the primary agricultural sector is scarce, which hinders the tracking of changes in gender relations and inclusivity in value chains over time and across contexts as well as on intersecting forms of inequalities and their impacts on value chain performance. Beyond production node, national surveys continue to provide limited insights about gendered patterns of participation and benefits in different value chains and different nodes such as processing, trade, and transport. Companies have a role to play to ensure that their value chains do not contribute to gender inequality and can use international instruments for responsible business conduct, and gender specific supporting materials that have become available. However, evidence will need to be collected on how and to what degree they do. Voluntary standard systems may have a role to play but need guidance to improve the incorporation of gender equality metrics.

The realities of EU industrial policies analysed through automotive value chain dynamics

AbstractProcesses in the past decades have resulted in the segmentation of European industries into ‘headquarter’ and ‘factory’ economies, though these categories are not fully distinct. ‘Headquarter’ economies typically host the higher value added activities and service units while ‘factory’ economies are popular locations for lower segments of the value chains. This setup has implications for EU level industrial policy strategies. In the current times of accelerating technological development and the ever growing servitisation of industries, ‘headquarter’ economies genuinely have better capabilities and resources to gain more share of the value added, and can actually steer the course of events in the sector. In the EU peripheries, new investment often covers relocation of previous technologies and retired assets of original equipment manufacturers (OEMs). The ‘factory’ economies are in a disadvantage in several aspects, while the headquarters optimise according to their own set of strategic preferences, which further compromises the opportunities of industrial actors in the peripheries to shape their own future. Industrial policies, however smart and well designed, have limited chances to influence the character and speed of changes. We review reported cases through which we test literature and contrast realities with aspirations regarding smart and sustainable industrial development across the EU.

Sustainability in the global value chain-a scientometric analysis.

For its promise in enhancing sustainability, the global value chain (GVC) has grown in relevance and sparked many studies. Due to different value activities in multiple countries and industry clusters, the competition and cooperation among value chains have attracted the considerable attention of business leaders and academicians worldwide. GVC-related sustainability research is a niche area despite its widespread presence in the literature. To bridge the gap, we use scientometric analysis in this paper, examining the corpus of 753 articles published in Web of Science journals from 2001 till 2021. This review illuminates the research performance constituents (e.g., most prolific authors, nations, institutions, and journals), the themes and issues that underpin the fields' intellectual structure, and transforming discoveries. GVC depends on nine basic clusters for sustainability research (i.e., global value chain participation, gendered global production network, repositioning organisational dynamics, labour stands, learning opportunities, Internet era). Future studies can be conducted to generate new knowledge across ten thematic (based on keywords) clusters (i.e., market liberalisation, trade pollution nexus, value chain dynamics, global value chain reconfiguration, non-governmental organisation, multipolar governance). A model that encompasses current knowledge of the global value chain for sustainability is developed, and avenues for future research are provided.

The Effect of Environmental Sustainabiity and Value Chain Concept in the Context of Local Economy on Value Added of Coffee Commodities in Kerinci

This study examines the relationship between environmental sustainability, the value chain concept, and local economic development in the context of value-added commodity coffee in Kerinci, Indonesia. The research adopts a mixed-methods approach, incorporating qualitative interviews with key stakeholders and quantitative surveys of coffee producers and consumers. The findings reveal that coffee producers in Kerinci have increasingly embraced sustainable practices, such as shade-grown coffee, organic farming, water conservation, and reforestation efforts. These sustainable practices contribute to environmental preservation and enhance the value chain dynamics, leading to improved market access and increased value addition for coffee producers. Moreover, the study identifies a positive correlation between sustainable practices, value chain integration, and local economic indicators, indicating that sustainable coffee production promotes local economic development in Kerinci. The study recommends strengthening support mechanisms, promoting market access and value addition, fostering collaboration and knowledge exchange, and enhancing policy and institutional support to further enhance the environmental sustainability and economic competitiveness of the coffee industry in Kerinci.

Smallholder Participation in Modernising Agri-Food Value Chains in Thailand: The Role of Traditional Markets

The strategic focus of food retailers on stringent product requirements and the logistical management of fresh produce from farm to shelf have often been seen as raising barriers for smallholders, thus leading to the exclusion of resource-constrained farmers. Our study contributes to research on the inclusion of smallholders in modern agri-food value chains and on the integration of their perspectives in studies of dynamics in value chains through a combined qualitative and quantitative exploration of vegetable-producing smallholders in northern Thailand. We find that smallholders are not excluded from Thailand’s modern agri-food value chains, regardless of their household assets, but are instead integrated through traditional structures. To some extent, they do have room for manoeuvre in selecting different marketing channels and some bargaining power. Traditional markets can be very important for linking smallholders to modern agri-food value chains, but limited knowledge exchange, structural challenges in gaining access to certification and product differentiation all reduce the possibilities for upgrading. We emphasise the importance of viewing smallholders as active navigators within value chains and of understanding their motivations in making use of different sales channels in order to understand the complexities of their realities while not overlooking the power structures within value chains.

English

The production and adoption of sorghum-improved varieties are faced with biotic and abiotic stresses affecting both its utilization and marketability by different actors in the sorghum value chain. This study aims to understand why and how different social groups and value chain actors make decisions on the utilization of sorghum and how these decisions influence the choice and adoption of the sorghum cultivars introduced and promoted by the breeding programs. This study was conducted in Mali’s Sudan and Savanna zones, wherein the different agroecological zones have differentiated production and utilization realities and traits demand. Mixed methods (surveys, focus group discussions, key informant interviews) combined with intersectional and value chain approaches were used for data collection and analysis. The data were collected from 836 respondents in 12 villages including 384 females (46%) and 452 males (54%) representing sorghum growers, processors, consumers, and traders. While the findings show gender-specific trait preferences, actors’ traits choices revealed the gender dynamics in value chains in which the different roles, interests, and challenges of men and women influence their choices and adoption of sorghum cultivars. The results also revealed there is an increased opportunity for the sale of sorghum grains (38%); this may be explained by the continuous efforts made by research institutes to develop high-yield sorghum varieties and the evolving processing sector in Mali.   Key words: Sorghum, gender, traits preferences, breeding, Mali.

Socio-ecological value chain resilience and cleaning workers

ABSTRACT Examining the ways that industries survived the COVID-19 pandemic can teach us a great deal about the resilience of value chains, the ways value chain dynamics shape worker resilience, and the measures states can adopt to support both. In this paper we critically examine the thriving body of theory known broadly as supply chain resilience and explore a branch that embraces socio-ecological perspectives. We first develop a theoretical model that takes what we perceive to be the most fruitful elements of these literatures for industrial relations scholarship and bring it together with approaches tangential to industrial relations concerned with value chain actor and worker agency and resilience. We then apply this model in an analysis of the Australian commercial cleaning sector during the pandemic. Finally, we assess federal and state measures to assist and “buffer” employment and the economy in Australia, including JobKeeper and JobSeeker. We find that these government measures, combined with earlier restructuring of the labour market and restrictive immigration policies, provided the institutional scaffolding for the failure of the cleaning industry during the pandemic, exactly when cleaning became an essential service for the resilience of the whole of society.

Functional division of labour and value capture in global value chains: a new empirical assessment based on FDI data

This work provides a new empirical assessment of global economic hierarchies and the associated unequal distribution of value between core and peripheral economies. This is accomplished by looking at the functional division of labour induced by the international fragmentation of production and the related value capture dynamics in global value chains (GVCs). To this aim, we introduce and compute an indicator of ‘functional specialization’ of economies based on their ability to attract Foreign Direct Investment, which allows us to detect the value adding activities in which more than 100 countries have specialized from 2003 to 2018. We show that the most intangible-intensive activities are concentrated in core capitalist economies, while production operations at the lower end of the value chain are mainly the prerogative of low- and middle-income countries. Although China and India have emerged as partial but significant outliers, a substantial persistence of this functional division of labour across world macro-regions is also observed over the period. Most notably, we find that a higher specialization in the most intangible-intensive functions allows countries to capture a greater amount of value from trade in GVCs, thus providing novel empirical support to the ‘Smile curve’ hypotheses and the underlying ‘intellectual monopoly’ perspective.