The development implications of global value chains. One of the main preoccupations of global value chain gvc analysis has been how value chains are governed and by which types of firms. The governance of global value chains and the effects of the global financial crisis transmitted to producers in africa and asia. Global value chains and the governance of embedded food commodities. In this special issue, we propose to launch a renewed discussion how firms configure of their global activities and the governance of global value chains. This is less likely to arise in nonhierarchical chains where relationships are market or network based. For more than twenty years, gary gereffi has led the world in understanding the governance, upgrading and evolution of gvcs. Governance in global value chains global value chains. Global standards, global governance and the organization of.
Under which conditions would we expect relational, modular, captive, or vertically integrated global value chains to arise. Sustainable label and governance of global value chain. The concept is used to refer to the interfirm relationships and institutional mechanisms through which nonmarket coordination of activities in the chain takes place. Global value chains and the governance of embedded food. The case of soy tony heron, patricia prado and chris west university of york abstract in recent decades, soy has emerged as one of the worlds most signi.
This article explains what it means and why it matters for development research and policy. Types of governance in global value chains if a theory of global value chain governance is to be useful to policymakers, it should be parsimonious. Jul 01, 2001 the concept of governance is central to the global value chain approach. The governance of global value chains home food and. First, it asks how standards shape the nature of what this article refers to as global governance. Jul 30, 2015 the continued advance of global value chains as the mode of production for an increasing number of goods and services has impacted considerably on the economies and societies both of the developed world and the emerging economies. Findings point at opportunities for these suppliers to become involved in value chains that enhance. The article highlights the dynamic and overlapping nature of global value chain governance through four brief industry case. Pdf governance in global value chains governance in global. The global value chains gvcs framework has emerged in recent years as a. The governance of global value chains an analytical. Global value chains are the product of globalisation and particularly the lowering of transport costs and the information and communications technology revolution, whose advances have given firms the ability to efficiently unbundle their production processes across locations.
The connections between industry activities within a chain can be described along a continuum extending from the market, characterized by armslength relationships, to hierarchical value chains illustrated through direct ownership of production processes. The governance of global value chains and the effects of the. Second, it assesses how standards impact on the governance of value chain ties. Supplierled industrial upgrading strategies in global value chains 2. It can be very insightful to see how supply chains are viewed in other research fields. It draws on three streams of literature transaction costs economics, production networks, and technological capability and firmlevel learning to identify three variables that play a large role in determining how global value chains are governed and change. Further, in such cases, upgrading cannot proceed without substantial. Pdf the governance of global value chains wang lulu. The governance of global value chains supply chain. The governance of global value chains and the effects of the global. How are relations along value chains actually formed and what are the governance structures along production segments.
Jun 16, 2017 global value chain gvc governance is an established field within international business research, yet the relational aspects of gvcs have, to date, garnered less scholarly attention than have efficiency considerations. The report tadtcwp20126 has been updated and revised following comments received at the 2122 march 2012 meeting of the working party of the trade committee and 27 april meeting of the working party on the globalisation of industry. The governance of global value chains, upgrading processes and. Gereffi, humphrey and sturgeon 2005 take a transactionbased political economy perspective to explain the governance of global value chains. Global value chain analysis a primer the first edition of global value chain analysis. The article highlights the dynamic and overlapping nature of global value chain governance through four brief.
The governance of global value chains global value chains. Abstract this article builds a theoretical framework to help explain governance patterns in global value chains. This article builds a theoretical framework to help explain governance patterns in global value chains. Gary gereffi, john humphrey, raphael kaplinsky and timothy j. In this special issue, we propose to launch a renewed discussion of how firms configure their global activities and the governance of global value chains. This introductory paper to a special issue on global value chains gvc focuses on the concept of governance as the dimension of gvcs that has received the most theoretical and empirical attention to date. The governance of global value chains an analytical framework. This conceptual studys objective is to explore the relational dynamics of gvc governance using an internalization theory perspective, and by linking gvc research with. For example, operating in quasihierarchical global chains helps local producers to embark on rapid product and process upgrading, but makes it difficult to progress into the design and marketing functions of the chain. In global value chains and development he brings together his most relevant work while providing insights on the evolving trade and technology landscape transforming gvcs. Pdf the concept of governance is central to the global value chain approach.
Duke gvc center director gary gereffi addressed this question in a presentation during the global value chain innovation development summit held in shenzhen, china on october 12. Economic and social upgrading in global value chains and industrial clusters. Duke journal of comparative and international law 24, 3 spring. The concept is used to refer to the interfirm relationships and. The governance of global value chains food and agriculture. International trade and investment this paper offers four contributions to the empirical literature on global value chains gvcs.
Global standards, global governance and the organization of global value chains khalid nadvi abstract compliance with international standards is now a sine qua non for entry into globalized production networks. It has to simplify and abstract from an extremely heterogeneous body of evidence, identifying the variables that play a large role in determining patterns of value chain governance while holding oth. Value chains at the scale of supranational regions often operate at the level of trade blocs, and global value chains operate in two or more regional blocs. Mapping global value chains 45 december 2012 the oecd conference centre, paris action required. Value chain governance refers to the relationships among the buyers, sellers, service providers and regulatory institutions that operate within or influence the range of activities required to bring a product or service from inception to its end use. Governance in global value chains institute of development. A global value chain perspective on industrial policy and development in emerging markets. The whole process of producing goods, from raw materials to finished products, is increasingly carried out wherever the necessary skills and materials are available at competitive cost and quality. Some examples and resulting issues meine pieter van dijk professor entrepreneurship at maastricht school of management for icim 2008 conference in maastricht, the netherland email. Trade governance frameworks in a world of global value chains. This introductory paper to a special issue on global value chains gvc focuses on the concept of governance as the dimension of gvcs that has received the. Over the past decades, there has been a growing fragmentation and globalization of value chains. The governance of global value chains duke university. View the governance of global value chains an analytical framework.
On the measurement of upstreamness and downstreamness in. The theory generates five types of global value chain governance hierarchy, captive, relational, modular, and market which range from high to. In turn, specific roles within the value chain are also determined by gender, making gender a key component in the process as well. Gvcs, however, are not uniform in terms of governance or incentives. The governance of global value chains and the effects of. Global value chains, governance, and globalization strategies. This introductory paper to the special issue on governing global value chains gvcs focuses on the concept of governance as the dimension of gvcs that has received the most theoretical and empirical attention to date. It draws on three streams of literature transaction costs economics, production networks. Gary gereffi, john humphrey, raphael kaplinsky and timothy. Economic and social upgrading in global value chains and. Global value chains 3 trade governance frameworks in a world of global value chains sherry stephenson on behalf of the e15 expert group on global value chains. Trade governance frameworks in a world of global value. The governance of global value chains gary gereffi duke university john humphrey institute of development studies and timothy sturgeon massachusetts institute of technology abstract this article builds a theoretical framework to help explain governance pat terns in global value chains.
Conceptually, it organically incorporates convention theory into global value chain analysis with the aim of furthering a theoretical discussion of private and public forms of governance in the global economy. Unresolved human rights, environmental and ethical dilemmas in the apple supply chain. Pdf governance in global value chains governance in. Given the interdisciplinary nature of the topic, we strove to be. The rise of a new, global scale supplybase 9the global value chains framework is an overarching rubric that ties these trends together 9new features are global suppliers, global buyers, and value chain modularity, which eases coordination between the two. Assessing the risks of participation in global value chains chapter, edited book.
Further, to better grasp the micro governance of value chain, gereffi et al. Governance of global value chains, a key concept of the topdown view, focuses. Developing country firms and farms are confronted by an array of distinct product and process standards that they must meet. Summaries the concept of governance is central to the global value chain approach. Peter gibbon, jennifer bair and stefano ponte abstract. The continued advance of global value chains as the mode of production for an increasing number of goods and services has impacted considerably on the economies and societies both of the developed world and the emerging economies. Global value chains have become a dominant feature of world trade, encompassing developing, emerging, and developed economies. In this article, we contribute to this debate through a speci. In light of this, this article raises questions on how standards effect interfirm and institutional and political governance.
The global value chains framework, a typology of network governance forms if there is time. The governance of global value chains openscienceasap. Oct 10, 2019 global value chains gvcs are a key feature of the global economy in the 21st century. Development challenges and policy options january 2016 note the policy options paper is the result of a collective process involving all members of the e15 expert group. It has to simplify and abstract from an extremely heterogeneous body of evidence, identifying the variables that play a large role in determining patterns of value chain governance. This article explains what it means and why it matters for. Global suppliers are creating new constraints in industries that have already globalized 3. This conceptual studys objective is to explore the relational dynamics of gvc governance using an internalization theory perspective, and by. The article highlights the dynamic and overlapping nature of global value chain governance. Intheearly2000s,amoredifferentiated typology of governance structures was introduced, which focused on new types of coordination in global value chains gvcs. To do so, three variables complexity of transactions, ability to codify transactions, capabilities in the supply. International value chains operate in more than one country. To do so, three variables complexity of transactions, ability to codify transactions, capabilities in the supply base are identified, and. Pdf governance in global value chains researchgate.
Lead firms create global value chains with multiple suppliers and individual firms form their own global value chains where activities are offshored and outsourced. In the 1970s and 1980s, one such shift was characterized by the emergence of buyerdriven and producerdrivencommoditychains. Global value chains and economic development duke global. They show how international investment and trade create crossborder production networks that link countries, firms and workers around the globe. Governance can be defined as nonmarket coordination of economic activity. Governance in global value chains humphrey 2001 ids. The theory generates five types of global value chain governance hierarchy, captive, relational, modular, and market which range from high to low levels of explicit coordination and power asymmetry. Quality conventions and the governance of global value. Gender plays a prominent role in global value chains, because it influences consumption patterns within the united states, and thus affects production on a larger scale. The concept of governance is central to the global value chain approach. Although there have been many efforts at reform there is evidence of unresolved dilemmas of human rights, environmental issues and ethical dilemmas in the operation. Global value chain gvc governance is an established field within international business research, yet the relational aspects of gvcs have, to date, garnered less scholarly attention than have efficiency considerations. Bringing institutions back in the study of global value. Global value chains and development by gary gereffi.
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