The dilemma of domestic suppliers on the periphery of the automotive industry global value chain

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jesús F. Lampón ◽  
Marta Rodríguez De la Fuente ◽  
José Antonio Fraiz-Brea
Keyword(s):  
Automotive Industry ◽  
Value Chain ◽  
Added Value ◽  
Primary Data ◽  
Global Value Chain ◽  
Content Type ◽  
Industry Value Chain ◽  
Global Presence ◽  
The Impact

PurposeUnder the global value chain (GVC) approach, this paper aims to analyze how domestic suppliers on the periphery of the automotive industry are affected by their relationship with foreign multinationals.Design/methodology/approachA case study with primary data collected from foreign multinationals operating in the Mexican automotive industry was used to analyze their relationship with domestic suppliers.FindingsThe evolution of the suppliers has been characterized by improved quality and added value in their products and more asset-intensive, efficient processes. This evolution has been driven by improvement in production capabilities and investment in new equipment by domestic suppliers and facilitated by knowledge transfer from foreign multinationals. However, it has not involved the acquisition of innovation capabilities or the internationalization of production activities. This has limited their position on the first levels of the value chain and their global presence, which are essential aspects when climbing the industry value chain to lead some activities at a global level. At the same time, most of these suppliers have become strategic and have a greater dependence on foreign multinationals. This poses a dilemma for domestic firms, as the relationship with these multinationals becomes more intense and dependent and at the same time reduces the possibility of leading activities in the value chain.Originality/valueThe paper analyzes the impact on domestic suppliers of their relationships with foreign multinationals, integrating traditional product, process and functional upgrading and new elements, in particular, participation in the GVC and dependence on multinationals.

scholarly journals Cross-cultural collaboration for inclusive global value chain: a case study of rattan industry

2019 ◽  
Vol 15 (1) ◽  
pp. 149-170 ◽  
Author(s):  
Aluisius Hery Pratono
Keyword(s):  
Technology Transfer ◽  
Multinational Corporations ◽  
Value Chain ◽  
Cross Cultural ◽  
Global Value Chain ◽  
Social Mechanism ◽  
Content Type ◽  
The Social ◽  
Innovation And Technology

Purpose The purpose of this paper is to understand how the cross-cultural collaboration between developed market and emerging economies promotes an inclusive global value chain (GVC) through innovation and technology transfer. Drawing on global rattan industry, this paper identifies the three typologies and social mechanism of cross-cultural collaboration in GVC. Design/methodology/approach This study uses a qualitative method with a case study of rattan industry. The case study analysis covers the linkages between upstream industries in emerging economies and downstream industries in developed countries. Findings The result shows that innovation and technology transfer play an essential role in the cross-cultural collaboration through presenting the creative value-adding process beyond the simple trade of rattan. This study identifies the social mechanism of cross-cultural collaboration in three GVC typologies of rattan industry. Research limitations/implications The study was undertaken between 2015 and 2017. The observed value chain in rattan industry context demonstrates the selected business network from Indonesia to the European countries. Practical implications There were some activities that worked well for decades, such as creative innovation and technology transfer from multinational corporations to small businesses. The initiative to promote brand seemed to work less well for the local designers in developing countries from being part of the GVC. The creative innovation and technology transfer from multinational corporations to rattan farmers continued to struggle. Originality/value This study draws a distinction between the typologies of GVC, where cross-cultural collaboration has developed slowly and those where it comes about quickly. This extends the discussion about creative value between players in developed and developing countries, including the social mechanism of cross-cultural collaboration in GVC.

scholarly journals “Dominance by birthright”? Reconfiguration of firm boundaries to acquire new resources and capabilities

2019 ◽  
Vol 119 (9) ◽  
pp. 1888-1907 ◽  
Author(s):  
Jin Hooi Chan ◽  
David Reiner
Keyword(s):  
Value Chain ◽  
De Novo ◽  
Primary Data ◽  
Firm Boundaries ◽  
Structured Interviews ◽  
Content Type ◽  
Biofuel Industry ◽  
Resources And Capabilities ◽  
Context Specific

Purpose The purpose of this paper is to examine pre-entry resources and capabilities (R&Cs) of de alio and de novo entrants in an emerging industry. Then, the authors investigate how entrants modify their firm boundaries, after entering a new industry, to acquire the R&Cs deemed critical to be competitive and survive in the industry. Design/methodology/approach The analysis uses the global biofuel industry as a case study. The authors use multiple sets of data, including primary data collected from semi-structured interviews with industry stakeholders and experts across major biofuel-producing countries as well as quantitative data from industry reports. Findings Firms typically deploy two successive strategies in order to survive and grow. First, they extend vertical boundaries to capitalize on their own pre-entry R&Cs. Then they move quickly to acquire new R&Cs, which are classified as critical in the value chain of the industry. A new taxonomy of pre-entry R&Cs is proposed to distinguish critical and non-critical forms of R&Cs, and to reflect the ease of acquisition of any requisite R&Cs, which are context specific. These strategic moves lead to the bi-directional vertical integration observed in the biofuel industry. Research limitations/implications Managers need to be able to assess the opportunities for entry and subsequent strategies to be competitive by assessing their R&Cs in terms of criticality and ease of acquisition in their entry decision making. Originality/value A new taxonomy of R&Cs of the firm is proposed which has theoretical significance and practical implications for new entrants.

The impact of an urban facilities management summer school on the participants

Facilities ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dave Collins ◽  
Coline Senior ◽  
Mina Jowkar ◽  
Alenka Temeljotov Salaj ◽  
Agnar Johansen
Keyword(s):  
Knowledge Creation ◽  
Summer School ◽  
International Student ◽  
Educational Programs ◽  
Added Value ◽  
Facilities Management ◽  
Content Type ◽  
Potential Impact ◽  
The Impact

Purpose The purpose of this paper is to investigate how an Urban Facilities Management (Urban FM) focused summer school in Norway in 2019 impacted knowledge creation, as well as the host and foreign educators, along with the international student participants. Design/methodology/approach This paper’s data collection is formed as a “post-event study” using interviews and a quantitative survey from both the students and educators to look at the impact of the summer school on the student and the associated educational programs. Findings The outcomes of this study indicate that the impact on educators and their educational programs was substantial with regard to their teaching experiences. The study confirmed that foreign experience allowed not just for greater potential for cross institution cooperation for the future but also allowed for the usage of the summer school case studies in host and guest educational programs. For the students, the added value was in the international experience primarily and a chance to study on a case study project. The study was also successful in the dissemination of Urban FM knowledge. Originality/value This paper also offers added theoretical value in the development of a model in future projects on how to capitalize on the potential impact of the summer school on educators and students. The possibilities for increased dissemination and knowledge creation in Urban FM is also significant.

COVID-19 and food security as catalyst of conflict among rural households in Nigeria: a study of Ilaje community, Ondo state

2021 ◽  
Vol 13 (4) ◽  
pp. 169-185
Author(s):  
Tosin Seun Adebayo ◽  
Logo Oluwamayowa
Keyword(s):  
Food Security ◽  
Mixed Method ◽  
Rural Households ◽  
Primary Data ◽  
Mixed Method Research ◽  
Design Data ◽  
Content Type ◽  
Ondo State ◽  
The Impact

Purpose The compulsory lockdown issued by the Nigeria Government to curb the spread of the virus has undoubtedly negatively affected the livelihoods of households. As a result, many have lost their sources of income and have no other means for survival. It is important to note that it has the potential of triggering violent conflicts and civil unrest as a popular African adage goes as thus: “A hungry man is an angry man”. Unfortunately, little attention has been given, neither has extant literature adequately covered the impact of the coronavirus (COVID-19) outbreak as it directly affects households in a rural community in Nigeria. Design/methodology/approach This study proceeded from on both a qualitative and quantitative method and adopted a mixed-method and case study research design. Data for this study was collected through primary and secondary data. Primary data for this study was collected through a questionnaire and focus group discussions (FGD). The questionnaire used for this study was a validated instrument designed by the US Department of Agriculture (USDA) to measure food security amongst households. The USDA household’s instrument was used and then modified to access the food security status of households during the lockdown. Findings Findings from this study revealed that households, in general, were categorised as having “very low food security” during the lockdown as they testified to all the food insecure conditions. In general, the food intake of household members reported irregular eating patterns as the household lacked the money to purchase food. This study further indicated that a high number of respondents see violence as a means of attaining food. Extreme volatility in their inability to access food as a result of food shortages and the inability to benefit from government palliatives has been found to trigger incidents of conflict and malnutrition on households. Research limitations/implications This method was sampling method was adopted because of the compulsory and constitutional lockdown imposed by the government to curb the spread of the novel COVID-19 which limited the movement of the researcher to other households in the community which proved to be limited during the time this research was carried limiting the scope of the sample size. Originality/value This research adopted mixed-method research and was written by the researchers who did the study. This paper was conducted during the mandatory lockdown issued by the Federal Government in Nigeria with to understand the impact of the mandatory lockdown on rural households using Ilaje local of Ondo state as a case study while establishing a link between food security and conflict.

Global value chain linkages and domestic value-added content: Empirical evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bhushan Praveen Jangam ◽  
Badri Narayan Rath
Keyword(s):  
Value Chain ◽  
Least Squares Method ◽  
Value Added ◽  
Value Chains ◽  
Global Value Chain ◽  
Content Type ◽  
Services Sector ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose This paper aims to examine the relationship between global value chains (GVCs) and domestic value-added content (DVA) in a panel of 58 countries for the period 2005–2015. Design/methodology/approach First, the authors quantify the refined measures of GVC linkages by using the Borin and Mancini (2019) decomposition technique. Second, the authors apply the feasible generalised least squares method to test the relationship between GVCs and DVA empirically. Findings First, the authors find that GVC links are crucial to the enhancement of DVA. Second, a study at the sectoral level reveals that GVC links in the primary sector raise DVA whilst reducing DVA in the services sector. Third, the authors find that only upstream activities enhance value-added content. Fourth, the authors note the augmenting role played by national policies in mediating the gains associated with GVCs. Finally, the authors note that the outcomes associated with GVCs are consistent when the sample of countries is divided into groups based on income. Practical implications The results lead us to urge policymakers to promote greater integration of business activities into GVCs to reap their benefits. Originality/value This paper contributes to the research on the impact of GVCs on DVA by emphasising the significance of the types of GVC activities and policies that improve DVA.

scholarly journals Building cooperative capacity: the specialty coffee sector in Nicaragua

2014 ◽  
Vol 4 (2) ◽  
pp. 133-156 ◽  
Author(s):  
Nigel Poole ◽  
Jason Donovan
Keyword(s):  
Value Chain ◽  
Third Sector ◽  
Organizational Capacity ◽  
Asset Building ◽  
Enterprise Development ◽  
Content Type ◽  
Donor Support ◽  
Coffee Sector ◽  
The Impact

Purpose – Within the context of widespread donor support for producer organizations, the purpose of this paper is to examine the impact of interventions aimed at rescuing a failed cooperative and improving performance and business linkages between grower-suppliers and international markets through enterprise development. Design/methodology/approach – The paper reports a case study of a Nicaraguan coffee cooperative, Soppexcca, which received substantial donor support at the time of the international coffee crisis between 1999 and 2004. The study used a framework of organizational structure, strategy, empowerment, and performance to assess business performance and sustainability. Quantitative and qualitative data collection focussed on asset building and changes during the period 2005-2009. Findings – Soppexcca achieved major advances in asset building. External interventions played a pivotal role in building organizational capacity to respond to buyers’ demands and market-related shocks. Support was received not only from donors but also from supply chain partners and third-sector organizations. However, important gaps remain, and addressing these gaps requires changes in Soppexcca and sustained support. Research limitations/implications – As a case study, findings cannot be readily generalized but the implications will be of significance beyond the coffee sector in Nicaragua, wherever and in whatever sector building cooperative capacity is an important development objective. Social implications – Experience with Soppexcca shows that the creation of sustainable collective organizations is a long-term process, particularly in respect of building human capital. Originality/value – The paper examines enterprise development using concepts of capital asset formation and cooperative performance, and argues the significance of effective links between value chain stakeholders as well as internal cooperative performance.

The development of cultural heritage in Gozo, and its potential as a tourism niche

2017 ◽  
Vol 3 (2) ◽  
pp. 184-195 ◽  
Author(s):  
Daniel Borg
Keyword(s):  
Cultural Heritage ◽  
Cultural Context ◽  
Secondary Data ◽  
Added Value ◽  
Case Study Methodology ◽  
Content Type ◽  
State Institutions ◽  
Tourism Sector ◽  
The Impact

Purpose The purpose of this paper is to present a case study on the development of the cultural heritage sector on the island of Gozo in the Maltese archipelago. The studying of these relationships is very important to maximise the impact of the cultural heritage sector on tourism. The importance of the development of cultural tourism as a specific niche has been consistently recognised (Boissevain, 1994; Ministry for Tourism and Culture, 2007; Ministry for Tourism Culture and the Environment, 2016; Ministry for Tourism, 2014). Design/methodology/approach A case study methodology is adopted. The findings have been sourced mainly through secondary data such as official publications and materials available publicly, and through the author’s in-depth knowledge of the socio-cultural context of Gozo. Findings The paper’s main outcome is that the success of the cultural heritage sector in Gozo can be attributed to the close collaboration that exists between the Ministry for Gozo (responsible for Gozitan affairs) and non-governmental organisations (NGOs). While a culture of mistrust towards state institutions is generally prevalent among Gozitans (Azzopardi, 2015), the level of collaboration between the Ministry for Gozo and NGOs, may tend to show that Gozitans are more keen to trust state institutions run by the same Gozitans. Originality/value This paper analyses the underlying relationships in the cultural heritage sector on the island of Gozo. This is very important to continue building up on this niche as an added value to the tourism sector in Gozo.

scholarly journals Reimaging Post COVID-19 Global Value Chain: Case Study of Automotive and Electronic Companies in China

2021 ◽  
Vol 15 (2) ◽  
pp. 255
Author(s):  
Rizky Anggia Putri ◽  
Maula Hudaya
Keyword(s):  
Production Process ◽  
Value Chain ◽  
International Community ◽  
Global Value Chain ◽  
Economic Activities ◽  
Human Interactions ◽  
Before And After ◽  
The Impact ◽  
New System

The outbreak of the COVID-19 pandemic at the end of 2019 caused various problems for the international community, especially China as the outbreak’s epicenter. With the enactment of a lockdown policy in China, various activities involving human interactions, especially economic activities, are limited and can potentially disrupt the global value chain as China is the world’s factory. In this paper, we examine the impact of the pandemic on the Global Value Chain (GVC) in China. The authors argue that the pandemic has forced the companies that integrated with GVC to rethink their strategy on keeping the production process running well. This paper analyzes the impact of pandemics on the GVC in China by comparing the historical trajectories, actor’s strategies, and regulations before and after the pandemic. We compare these indicators before and after the pandemic to determine how they affect the GVC system and how companies adapt to the disruption by rethinking and readjusting their strategies. Thus, the analysis can conclude whether the fragmented GVC system is still relevant or needs an entirely new system with more resistance to phenomena like the COVID-19 pandemic.Keywords: The COVID-19 pandemic, Lockdown, Fragmented Global Value Chain, Companies Operated in ChinaMerebaknya pandemi COVID-19 di penghujung tahun 2019 menimbulkan berbagai permasalahan bagi dunia internasional khususnya Tiongkok sebagai episentrum penyebaran virus. Dengan diberlakukannya kebijakan lockdown di Tiongkok, berbagai aktivitas yang melibatkan interaksi manusia, khususnya aktivitas ekonomi, menjadi terbatas dan berpotensi mengganggu rantai nilai global karena Tiongkok adalah pabrik dunia. Dalam tulisan ini kami membahas dampak pandemi pada Global Value Chain (GVC) di Tiongkok. Penulis berpendapat bahwa pandemi telah memaksa perusahaan yang terintegrasi dengan GVC untuk memikirkan kembali strategi mereka dalam menjaga agar proses produksi tetap berjalan dengan baik. Tulisan ini menganalisis dampak pandemi terhadap GVC di Tiongkok dengan membandingkan lintasan historis, strategi aktor dan regulasi sebelum dan sesudah pandemi. Dengan membandingkan indikator-indikator tersebut di masa sebelum dan setelah pandemi, akan membantu untuk mengetahui bagaimana pandemi memengaruhi sistem GVC dan bagaimana perusahaan beradaptasi terhadap gangguan dengan memikirkan dan menyesuaikan kembali strategi mereka. Dengan demikian, analisis tersebut dapat digunakan untuk menyimpulkan apakah sistem GVC yang terfragmentasi masih relevan atau ternyata diperlukan sistem yang benar-benar baru yang lebih tahan terhadap fenomena pandemi COVID-19 tersebut.Kata-kata Kunci: Pandemi COVID-19, Lockdown, Global Value Chain Terfragmentasi, Perusahaan yang beroperasi di Tiongkok

scholarly journals Exploring the integration of business and CSR perspectives in smallholder souring

2018 ◽  
Vol 8 (4) ◽  
pp. 656-677 ◽  
Author(s):  
August Raimy Sjauw-Koen-Fa ◽  
Vincent Blok ◽  
Onno S.W.F. Omta
Keyword(s):  
Social Responsibility ◽  
Supply Chains ◽  
Value Chain ◽  
Large Scale ◽  
Fine Tuning ◽  
Primary Data ◽  
Sustainable Supply Chain ◽  
Bottom Line ◽  
Content Type ◽  
The Impact

PurposeThe purpose of this paper is to assess the impact of smallholder supply chains on sustainable sourcing to answer the question how food and agribusiness multinationals can best include smallholders in their sourcing strategies and take social responsibility for large-scale sustainable and more equitable supply. A sustainable smallholder sourcing model with a list of critical success factors (CSFs) has been applied on two best-practise cases. In this model, business and corporate social responsibility perspectives are integrated.Design/methodology/approachThe primary data of the value chain analyses of the two smallholder supply chains of a food and agribusiness multinational have been applied. Both cases were of a join research program commissioned by the multinational and a non-governmental organization using the same methods and research tools. Similarities, differences and interference between the cases have been determined and assessed in order to confirm, fine tune or adjust the CSFs.FindingsBoth cases could be conceptualized through the smallholder sourcing model. Most CSFs could be found in both cases, but differences were also found, which led to fine tuning of some CSFs: building of a partnership and effective producers organization, providing farm financing and the use of cross-functional teams in smallholder supplier development programs. It was also concluded that the smallholder sourcing model is applicable in different geographical areas.Research limitations/implicationsThe findings of this study are based on just two cases. More best-practise cases are recommended in order to confirm or to adjust the developed sourcing model and the CSFs.Originality/valueThis paper/research fills the need in sustainable supply chain management literature to study supply chains that comply with the triple bottom line concept, rather than supply chains that are just more “green.”

Teaching companies how to be entrepreneurial: cultural change at all levels

2019 ◽  
Vol 40 (2) ◽  
pp. 59-67 ◽  
Author(s):  
Laurence Murray Gillin ◽  
Rebecca Gagliardi ◽  
Laura Hougaz ◽  
David Knowles ◽  
Michael Langhammer
Keyword(s):  
Cultural Change ◽  
Entrepreneurship Education ◽  
Management Style ◽  
Added Value ◽  
Entrepreneurial Activity ◽  
Longitudinal Case Study ◽  
Content Type ◽  
And Performance ◽  
The Impact

Purpose This case study aims to show how a strategic intervention, using an in-house delivered university entrepreneurship education program, cultivates an entrepreneurial mindset and effective innovation culture amongst company staff. The intervention produces a measured change in staff decision making style from analytical to a more intuitive style. Also assessed is the resulting management-style change to the firm’s internal environment, strategic motivation and performance. Design/methodology/approach Through a qualitative longitudinal study of Partners and staff in the firm, the authors measure the impact of the selection, integration and performance of in-house entrepreneurship education on firm culture. Findings The authors identify organisation factors that inhibit staff entrepreneurial behaviour and by integrating an in-house education intervention, demonstrate unambiguously the resultant effective culture and entrepreneurial mindset. Research limitations/implications Generalising results from this single longitudinal case study requires caution. The positive outcome from the in-house education concept can be considered for further evaluation within other organisations. Practical implications Using an entrepreneurial health-audit to assess in-firm cultural behaviour enables management to identify factors fostering/inhibiting entrepreneurial activity and devise interventions to cultivate a firm-wide entrepreneurial mindset. Originality/value In-house education is not a new concept, but a targeted focus on entrepreneurship applied strategically to a committed firm shows outstanding results. The added-value is in the demonstrated enhancement to effective innovation outcomes.

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