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.

Assessment of the positions of the exporting countries of agri-food products on the world market according to their role in global value chains

2021 ◽  
pp. 8-14
Author(s):  
Elena Yu. Frolova ◽  
Keyword(s):  
Raw Materials ◽  
Action Plan ◽  
Value Added ◽  
Global Value Chains ◽  
World Market ◽  
Point Of View ◽  
Value Chains ◽  
Agricultural Exports ◽  
Export Policy ◽  
The World

The place in the rankings of agricultural exporting countries in world trade is estimated in terms of the volume of imports and exports of raw materials and food. However, to assess the efficiency of agricultural exports, it is important to analyze the value added of exported goods produced in the country. The position of the exporting country in global value chains is derived from the type of agricultural production, which in turn depends on the level of development of the national economy, the availability and breadth of use of modern high technologies. The article examines the concept of the development of world agriculture from the point of view of the formation of global value chains, set out in the report of the UN World Food Organization [1] in comparison with the political decisions of such countries as India and the People’s Republic of China in the development of agricultural and food exports. The paper analyzes the risks associated with the consolidation of developing countries as suppliers of agricultural raw materials, as well as the conditions and action plan that allow the country-exporter of agricultural raw materials to move to higher levels in the global value chains on the world market. This experience should be considered to make comprehensive and effective decisions on the formation of the export policy of agricultural products and food of the Russian Federation, considering the food security of the country.

Technical efficiency and its determinants in the Indian textile garments industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdulla ◽  
Shiv Kumar
Keyword(s):  
Panel Data ◽  
Technical Efficiency ◽  
Textile Industry ◽  
Small And Medium Enterprises ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Value Chains ◽  
Small Scale ◽  
Content Type ◽  
Medium Enterprises

Purpose This paper aims to examine technical efficiency and its determinants in Indian textile garments industry in post-agreement on textiles and clothing regime and evaluate the technical efficiency among micro, small and medium enterprises (MSMEs) firms. Design/methodology/approach This study uses unbalanced panel data for the period 2005–2010 to 2015–2016. The stochastic frontier function is used to estimate technical efficiency and its determinants. Findings The results show that the overall ecosystem of textile garments’ value chains could be improved to enhance the technical efficiency thereof. The result also reveals that small-scale firms have the highest technical efficiency scores, and medium-scale firms have the least technical efficiency score among all the categories of MSMEs. Research limitations/implications The textile garments industry needs to define its innovation strategies, as these strategies lead to different results that can be achieved only through the management of resources dedicated to the generation and implementation of innovations. Practical implications This study has shown that to offset India’s cost disadvantage in the international markets, there is a need to develop an ecosystem of textile manufacturing and value chains, eliminate the inverted duty structure (where inputs are taxed at a higher rate than the final product) and switch over from shuttle looms toward shuttle-less looms. This would unleash the potential of textile and garments industry and make it globally competitive and technically efficient. Further, there will be an alignment with the ease of doing business with an appropriate mix of policy, technology, institution, infrastructure, information and services. Originality/value Using frontier production function takes stochastic context into account for the dynamic character of technical efficiency and its components. Most of the past studies have assessed technical efficiency at the aggregate level using three-digit National Industrial Classification (NIC) or four-digit NIC code. An analysis at higher levels of aggregation masks the variation in technical efficiency. This study used five-digit NIC data to measure the firm-specific technical efficiency of the textile industry. According to the authors’ knowledge, this study is the first of its kind in the Indian textile industry using stochastic frontier approach and panel data. Further, it also looks at the contribution of different determinants in technical efficiency to the firms.

Operationalising resilience in tropical agricultural value chains

2019 ◽  
Vol 24 (2) ◽  
pp. 271-300 ◽  
Author(s):  
Joshua Aboah ◽  
Mark M.J. Wilson ◽  
Karl M. Rich ◽  
Michael C. Lyne
Keyword(s):  
Value Chain ◽  
Food System ◽  
Raw Materials ◽  
Citation Network ◽  
System Level ◽  
Value Chains ◽  
Common Source ◽  
Content Type ◽  
The Individual ◽  
Stakeholder Interactions

Purpose The analysis of the concept of resilience in supply chain management studies mostly focuses on the downstream side of the value chain and tacitly assumes an unlimited supply of raw materials. This assumption is unreasonable for agricultural value chains, as upstream disruptions clearly have a material impact on the availability of raw materials, and indeed, are a common source of supply problems. This paper aims to present a framework for the operationalisation of the concept of socioecological resilience in agricultural value chains that incorporates upstream activities. Design/methodology/approach A citation network analysis was adopted to review articles. A conceptual framework is then advanced to identify elements of resilience and indicators relevant to tropical agricultural value chains. Findings There are limited studies that assess resilience in the food chain context. Flexibility, collaboration, adaptability and resourcefulness are key elements for assessing resilience at the individual chain actor level. However, the paper argues that adaptability is the relevant element for the assessment of resilience at an aggregate food system level because it considers the alteration of a system’s state of resilience. Practical implications The proposed framework and propositions accommodate stakeholder interactions in the value chain and could serve as a tool to guide the assessment of resilience in agricultural value chains. Originality/value This paper is one of the few to extend resilience to cover the socioecological interaction aspects for supply chains that yield the raw materials needed for continuity in channel-wide value creation processes.

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.

Asian investments target large Latin American markets

2021 ◽  
Keyword(s):  
Supply Chains ◽  
Latin American ◽  
High Technology ◽  
Global Value Chains ◽  
Value Chains ◽  
Automated Manufacturing ◽  
Investment Climate ◽  
Content Type ◽  
South Korean ◽  
Technology Investment

Significance Major Japanese and South Korean conglomerates are driving adoption of automated manufacturing, digitalisation of supply chains and other technologies critical to the region’s competitiveness. However, the pandemic forced many investors, especially mid-sized firms, to refocus on Asian markets. Increasingly, Latin America’s investment climate will be shaped by growing US-China rivalries. Impacts Investment from Japanese and Korean companies is critical for the region’s competitiveness in increasingly digitalised global value chains. Smaller economies risk missing out on the benefits of high-technology investment from Japan and Korea, concentrated in Brazil and Mexico. US efforts to try to decouple global value chains from China have sparked interest in investing in the region, but to date lack substance.

Disappearing natural resources: what flowers tell us about new value chains

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guillaume Carton ◽  
Julia Parigot
Keyword(s):  
Natural Resources ◽  
Natural Resource ◽  
Resource Depletion ◽  
Global Value Chains ◽  
Value Chains ◽  
Cut Flower ◽  
Resource Exploitation ◽  
Content Type ◽  
Natural Resource Exploitation ◽  
Natural Resource Depletion

Purpose This paper aims to question the capacity of firms embedded in global value chains to manage their natural resources in a sustainable way. Thus, it offers guidelines for more sustainable value chains. Design/methodology/approach While business strategies have focused on optimizing natural resource exploitation and on constructing global value chains to face sustainability issues, this study first explains why these strategies are not effective in preventing natural resource depletion. Second, it offers a model for anticipating resource depletion. The cut flower industry constitutes a central case to explain the model. Two other industry cases complement the demonstration. Findings To anticipate natural resource depletion and thus improve industry sustainability, firms must shift from the exploitation of endangered natural resources to the use of alternative local ones. This shift, however, encourages firms to reconstruct value chains and rethink how they create value within these new value chains. It also has an impact on firms’ growth strategy: they must replicate value chains on a local scale instead of taking part in global value chains. Research limitations/implications The findings rely on illustrations from the cut flower, fishing and textile fiber industries. Generalization to other industries may strengthen the argument. Originality/value This study offers a model of sustainable growth for firms willing to anticipate natural resource depletion by offering a shift in value chains. It consists of exploiting alternative natural resources and of rethinking the value offered to consumers. Thus, it goes against current models that merely focus on optimizing natural resource exploitation within global value chains.

scholarly journals Chemical vegetable safety in China: “supermarketisation” and its limits

2020 ◽  
Vol 122 (11) ◽  
pp. 3433-3449
Author(s):  
Lita Alita ◽  
Liesbeth Dries ◽  
Peter Oosterveer
Keyword(s):  
Food Safety ◽  
Value Chain ◽  
Design Methodology ◽  
Urban China ◽  
Value Chains ◽  
Small Scale ◽  
Retail Sector ◽  
Content Type ◽  
Food Value ◽  
Better Than

PurposeThe purpose of this paper is to analyze the process of supermarketization in the vegetable retail sector in China and its impact on food safety.Design/methodology/approachData from food safety reports by the Chinese Food and Drug Administration (CFDA) are used to investigate the degree of vegetable safety in different value chain types. To assess the predictors of the degree of vegetable safety, a logistic regression model is applied.FindingsSupermarketization has led to the reorganization of the vegetables provision system, through closer coordination along the supply chain and the use of secured production bases. We identify four types of vegetable value chains in China based on their form of coordination. Supermarkets improve vegetable safety even when they rely on external suppliers, but also wet markets perform significantly better than other small-scale retailers in terms of vegetable safety.Originality/valueThe study has expanded the knowledge of the supermarketization in urban China by collecting data from CFDA. Furthermore, the study used the theory of food value chain to understand determinant factors in securing food safety. Moreover, this study reveals that wet markets also have prospects in solving vegetable safety problems in China, especially in underdeveloped areas.

Refining of FDI motivations by integrating global value chains’ considerations

2015 ◽  
Vol 23 (1) ◽  
pp. 67-76 ◽  
Author(s):  
Axèle Giroud ◽  
Hafiz Mirza
Keyword(s):  
Multinational Enterprises ◽  
Global Value Chains ◽  
Global Scale ◽  
Policy Implications ◽  
Value Chains ◽  
Economic Activities ◽  
Content Type ◽  
Geographically Dispersed ◽  
Novel Approach ◽  
Investment Motivations

Purpose – The purpose of this paper is to show how the nature of the activities conducted by multinational enterprises globally and the governance modes are changing. Essentially, multinational enterprises (MNEs) structure and organize their activities in a more complex, fragmented and geographically dispersed manner. In this paper, the authors suggest that the evolution of MNEs and the rising importance of global value chains (GVCs) require a refinement of FDI motivations rather than a drastic change in the existing categories. The authors begin with a historical overview of evolving firms’ international strategies and FDI motivations, before developing arguments to support the view that the fine slicing of economic activities on a global scale, and the combination of governance modalities ought to be integrated into the presentation of investment motivations. The discussion ends with implications for governments and policymaking. Design/methodology/approach – This paper is a conceptual paper. Findings – Key suggestions to refine the presentation of investment motivations are presented, together with policy recommendations. Originality/value – This paper provides a novel approach to ways of refining investment motivations by integrating GVC considerations, and drawing policy implications from this process.

Sign in / Sign up

Export Citation Format

Share Document