The bargaining power, value capture, and export performance of Vietnamese manufacturers in global value chains

2021 ◽  
pp. 101829
Author(s):  
Hanh Song Thi Pham ◽  
Bent Petersen
Keyword(s):  
Bargaining Power ◽  
Export Performance ◽  
Global Value Chains ◽  
Value Chains ◽  
Value Capture

scholarly journals State policies and upgrading in global value chains: A systematic literature review

2021 ◽  
Author(s):  
Valentina De Marchi ◽  
Matthew Alford
Keyword(s):  
Public Procurement ◽  
Global Value Chains ◽  
State Policies ◽  
Theory And Practice ◽  
Value Chains ◽  
Value Capture ◽  
State Policymaking ◽  
Environmental Goals ◽  
The One ◽  
Economic Upgrading

AbstractThis paper examines the role of state policymaking in a context of global value chains (GVCs). While the literature acknowledges that states matter in GVCs, there is little understanding of how they matter from a policy perspective. We address this tension between theory and practice by first delineating the state’s facilitator, regulator, producer and buyer roles. We then explore the extent to which corresponding state policies enable or constrain the following policy objectives: GVC participation; value capture; and social and environmental upgrading. We do so via a systematic review of academic GVC literature, combined with analysis of seminal policy publications by International Organizations. Our findings indicate that state policymakers leverage facilitative strategies to achieve GVC participation and enhanced value capture; with regulatory and public procurement mechanisms adopted to address social and environmental goals. Mixed results also emerged, highlighting tensions between policies geared towards economic upgrading on the one hand, and social and environmental upgrading on the other. Finally, we suggest that effective state policies require a multi-scalar appreciation of GVC dynamics, working with multiple and sometimes competing stakeholders to achieve their developmental objectives.

An Overview Of Value Chains, Supply Chains And Strategic Alliances Issues

2011 ◽  
pp. 61-81
Author(s):  
Tamio Shimizu ◽  
Marley Monteiro de Carvalho ◽  
Fernando Jose Barbin
Keyword(s):  
Strategic Alliances ◽  
Bargaining Power ◽  
Global Value Chains ◽  
Value Chains ◽  
Power Dynamics ◽  
Power Relationships ◽  
Defensive Strategies ◽  
Survival And Development ◽  
Fast Pace ◽  
A Company

In the competitive scenario unfolding at the beginning of the 21st century, characterized by the fast pace of technologic changes and opening and volatilization of global markets, an understanding of global value chains is of critical importance to outlining strategy. As shown in Chapter II, in the most complex production chains, assessing bargaining power in relation to customers and suppliers may not be enough to understand the power relationships in the global competitive market. Imagine a semiconductors industry, whose clients may be the PC industry, but also be in telecommunications, electronics end users, and new areas such as smart cards. How can one discuss bargaining power based only on the elements introduced on Chapter II? On the other hand, the process of decentralizing production activities, very often marked by globally-based outsourcing and by the streamlining of yesterday’s large corporate structures, created the so-called “network-companies.” According to Chesnais (1996), large companies operating on a global basis gave priority to some functions considered strategic, leading a global chain of suppliers and distributors, performing activities previously performed by verticalized companies. This process of “de-verticalization” presents some risks. However, when a company takes over value activities, it is possible to enforce its interests over other chain links by using its economic power. For small companies, which are part of these large chains, the understanding of power dynamics and relations is decisive for their survival and development, and to outline defensive strategies enabling them to increase their relative power in the chain by means of partnerships and networks of cooperation. The issues discussed are vital for strategy definition, since they bring a more detailed understanding of the game rules of the global value chains and of how to take advantage of its configuration, using networks and partnerships, or making use of location. This chapter intends to present a more in-depth discussion of the supply chain, introducing issues such as location, networks of cooperation, and the study of governance, both of local and global scope. The concept of value chains, both in product-based and in service-based industries, are addressed.

scholarly journals Integration of African firms into global value chains

2018 ◽  
Vol 14 (2/3) ◽  
pp. 252-281 ◽  
Author(s):  
Weimu You ◽  
Asta Salmi ◽  
Katri Kauppi
Keyword(s):  
Cultural Context ◽  
Raw Materials ◽  
Global Value Chains ◽  
Foreign Firms ◽  
Value Chains ◽  
Small Scale ◽  
Value Capture ◽  
Content Type ◽  
Qualitative Exploration ◽  
Local Sourcing

Purpose This paper aims to analyze the roles that African suppliers play in global value chains and the strategies that foreign firms adopt to integrate African firms into their supply chains. Design/methodology/approach The empirical research of this paper is based on a multiple case study and on interview data of foreign buyers and their entry into African supply markets: five Finnish companies and five Chinese companies were interviewed in 2014-2015. Findings The authors find that Finnish firms make relatively small investments and start sourcing operations on a small scale, whereas Chinese firms are running large infrastructural projects, relying on local sourcing. African firms typically only play modest roles with little value capture in the chain, supplying raw materials and simple products. The African infrastructural and cultural context makes it challenging for foreign firms to provide local suppliers with more strategic roles in their chains, thus hindering integration of local firms into global value chains. Originality/value This paper is one of the first to offer a comparison of Finnish (Western) and Chinese (other emerging economy) firms’ sourcing from Africa and provides understanding of the role of African suppliers in current value chains. The authors offer a qualitative exploration of why companies invest in African suppliers and of the scope of African presence in global value chains.

scholarly journals Quality of Indonesia’s Domestic Institutions and Export Performance in the Era of Global Value Chains

2021 ◽  
Author(s):  
Arief Bustaman ◽  
Rina Indiastuti ◽  
B Budiono ◽  
Titik Anas
Keyword(s):  
Consumer Goods ◽  
Export Performance ◽  
Institutional Quality ◽  
Trade Agreements ◽  
Global Value Chains ◽  
Raw Material ◽  
Trading Partner ◽  
Value Chains ◽  
Domestic Institutions ◽  
Capital Goods

Abstract The focus of this research is on analysing the effects of institutional quality and trade agreements on Indonesia bilateral trade in four commodity groups in the era of global value chains (GVSs). Employing a panel data gravity model of Indonesian export of four commodities to Indonesia’s 18 trading partners from 2000 to 2018, and estimating the Feasible Generalized Least Squares (FGLS) and the Poisson Pseudo Maximum Likelihood Method (PPML), the results of this study find that institutional quality plays a different role in explaining Indonesia’s export performance of those four commodities, despite the fact that institutions contribute positively. Regarding raw material and capital goods export, trading partner institutions are significant factors for Indonesian export of the two commodities. On two commodities that are relevant to Indonesia participation in the global value chain, exported intermediates and consumer goods, we find that although both domestic institutions and trading partner institutions are significant to Indonesian export, but we argue that domestic institutions contribute more. This study also reveals that through tariff reductions, Indonesian trade agreements are significant regarding export of intermediate and consumer goods, but less so for raw material and capital goods.

scholarly journals Looking into global value chains: influence of foreign services on export performance

2018 ◽  
Vol 154 (4) ◽  
pp. 785-814 ◽  
Author(s):  
Carmen Díaz-Mora ◽  
Rosario Gandoy ◽  
Belén González-Díaz
Keyword(s):  
Export Performance ◽  
Global Value Chains ◽  
Value Chains

scholarly journals International Production Sharing and Export Development: An Examination for China and Vietnam

2017 ◽  
Vol 3 (2) ◽  
pp. 196
Author(s):  
Klimis Vogiatzoglou
Keyword(s):  
Export Performance ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Production Networks ◽  
Economic Sectors ◽  
International Production ◽  
Production Sharing ◽  
Export Expansion ◽  
The Relationship

The phenomenon of international production sharing networks (also known as production fragmentation, global value chains, or vertical production networks), which is associated with offshoring/outsourcing, has gained increasingly importance in the contemporary globalization process. This paper analyzes the patterns and trends in international production sharing and export growth in China and Vietnam over the last twenty years. More specifically, in addition to overall trends, our study examines the developments across four broad economic sectors and fifteen manufacturing industries. Furthermore, for both countries the relationship between a country’s participation in international production sharing networks and a country’s export development (in terms of the domestic value-added content of exports) is investigated through a statistical analysis. The empirical results indicate that China and Vietnam have increased substantially their participation in production networks. Moreover, we find that the extent of a country’s involvement in international production sharing highly correlates with improved export performance. This suggests that China’s and Vietnam’s impressive export expansion over the last twenty years can be attributed, in part, to increasing integration into global value chains.

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