Global Production Networks and (Distributional) Regional Development: The Cinnamon Industry in Karandeniya and Matale, Sri Lanka

2020 ◽  
Vol 15 (2) ◽  
pp. 209-237
Author(s):  
Eunyeong Song ◽  
Douglas R. Gress ◽  
Edo Andriesse
Keyword(s):  
Sri Lanka ◽  
Regional Development ◽  
Structural Changes ◽  
Value Added ◽  
Production Network ◽  
Production Networks ◽  
Global Production Networks ◽  
Exporting Firms ◽  
Global Production Network ◽  
Developmental Dynamics

The purpose of this article is to examine the multi-spatial and developmental dynamics of the cinnamon industry in Sri Lanka, the largest exporter in the world by value added. This contribution compares Karandeniya, a major traditional cultivating hub, and Matale, a region new to cinnamon cultivation, deploying a Global Production Network (GPN) framework inclusive of regional development considerations. Analyses, based on input from 23 semi-structured, in-depth interviews, examine the potential for all stakeholders to acquire equity or ‘how’ captured value influences the region ‘and’ individual actors over the course of development. Fieldwork reveals four upstream actors in the cinnamon industry, namely—farmers, peelers, collectors and exporting firms. Results indicate that the cinnamon boom led to strategic decoupling with the exporting firms in Colombo and subsequent strategic recoupling with other actors. The primary contribution of the research rests in the interpretation of resulting structural changes in each region from a bifurcated view of regional development. Based on regional economic growth, Karandeniya appears to be more successful. However, considering the extent of value distribution within the region, Matale is on a more inclusive trajectory vis-à-vis cinnamon exports. Based on these results, three implications for GPN theory and related development policy are suggested.

The Invisible Networks of Global Production: Re-Imagining the Global Value Chain in Legal Research

2020 ◽  
Vol 16 (1) ◽  
pp. 95-117
Author(s):  
Anna Beckers
Keyword(s):  
Value Chain ◽  
Value Chains ◽  
Global Value Chain ◽  
Commodity Chain ◽  
Production Network ◽  
Production Networks ◽  
Global Production Networks ◽  
Legal Research ◽  
Legal Rules ◽  
Global Production Network

AbstractReviewing the burgeoning legal scholarship on global value chains to delineate the legal image of the global value chain and then comparing this legal image with images on global production in neighbouring social sciences research, in particular the Global Commodity Chain/Global Value Chain and the Global Production Network approach, this article reveals that legal research strongly aligns with the value chain image, but takes less account of the production-centric network image. The article then outlines a research agenda for legal research that departs from a network perspective on global production. To that end, it proposes that re-imagining the law in a world of global production networks requires a focus in legal research on the legal construction of global production and its infrastructure and a stronger contextualization of governance obligations and liability rules in the light of the issue-specific legal rules that apply to said infrastructure.

scholarly journals Information Application of the Regional Development: Strategic Couplings in Global Production Networks in Jiangsu, China

Information ◽  
2020 ◽  
Vol 11 (9) ◽  
pp. 420
Author(s):  
Haiying Xu ◽  
Wei-Ling Hsu ◽  
Yee-Chaur Lee ◽  
Tian-Yow Chern ◽  
Shr-Wei Luo
Keyword(s):  
Regional Development ◽  
Regional Growth ◽  
Functional Coupling ◽  
Production Network ◽  
Production Networks ◽  
Global Production Networks ◽  
Firm Level ◽  
Value Capture ◽  
Local Supply ◽  
Capture Trajectories

The recent literature concerning globalizing regional development has placed significant emphasis on the Global Production Network (GPN 2.0). GPN 2.0 in economic geography emphasizes that regional growth is caused by a shift in the strategic coupling mode from a low to high level. In addition, GPN 2.0 regards firm-level value capture trajectories as key analytical object, rather than the interactive relationships among scalar and divergent actors in GPN 1.0. To provide a better understanding of causal linkages between the GPNs and uneven regional development in the background of globalization and to test the applicability of GPN 2.0 analysis framework, the paper analyzed 62 Korean-invested automotive firms in Jiangsu Province, China. In order to explore the value capture trajectories of lead firms in the GPNs, the authors applied K-means clustering method to quantitatively analyze the local supply networks of lead firms from organizational and spatial dimensions. Then, comparisons were made between strategic coupling modes of GPNs and regional development in North and South Jiangsu. This study found obvious similarities within these two regions but obvious differences between them in terms of value capture trajectories. We observed that North Jiangsu is currently in the stage of “structural coupling”, whereas South Jiangsu is in the stage of “functional coupling.” Thus, this article argues that spatial settings such as regional assets and autonomy are key factors influencing uneven economic development. This research may provide a crucial reference for the regional development of Jiangsu, China.

scholarly journals The powers of a social auditor in a global production network: the case of Verité and the exposure of forced labour in the electronics industry

2019 ◽  
Vol 20 (3) ◽  
pp. 653-678
Author(s):  
Gale Raj-Reichert
Keyword(s):  
Electronics Industry ◽  
Production Network ◽  
Production Networks ◽  
Global Production Networks ◽  
Power Resources ◽  
Civil Society Organisations ◽  
Governance Practices ◽  
Forced Labour ◽  
Credible Information ◽  
Global Production Network

Abstract Research on labour governance actors in global production networks (GPNs) has been limited to civil society organisations, firms and governments. Understanding the influence of actors in GPNs has been dealt with singular and overt modes of relational power. This paper contributes to both debates by examining an intermediary actor—the social auditing organisation Verité—and its exercise of multiple modes of overt and covert powers to illustrate the complex terrain of change in GPNs. Verité, whose exposure of forced labour in Malaysian electronics subsequently changed labour governance practices in the electronics industry, mobilised power resources of credible information to exercise powers of expert authority and acts of dissimulation across various networked relationships in the GPN. This paper puts forth a multi-power framework of analysis to understand the micro-politics of GPNs.

Global production networks, regional development trajectories and smallholder livelihoods in the Global South

2018 ◽  
Vol 19 (4) ◽  
pp. 973-993 ◽  
Author(s):  
Mark Vicol ◽  
Niels Fold ◽  
Bill Pritchard ◽  
Jeffrey Neilson
Keyword(s):  
Regional Development ◽  
Service Sector ◽  
Production Systems ◽  
Global South ◽  
Production Network ◽  
Production Networks ◽  
Global Production Networks ◽  
Value Capture ◽  
East And Southeast Asia ◽  
Development Trajectories

Abstract Recent advances in global production network theory, known as GPN 2.0, provide a theoretically sophisticated framework for understanding the articulation of global production systems with regional development trajectories. However, this framework was largely derived from lessons out of empirical analyses of the strategic coupling and value capture trajectories of firms in certain manufacturing and service sector ‘hot spots’, primarily in East and Southeast Asia, and its wider applicability for other contexts remains uncertain. This paper aims to address this lacuna by examining the potential for GPN 2.0 to understand regional development trajectories in agricultural production landscapes in the Global South dominated by smallholder-based farms that generate outputs for national and international markets. The distinctive characteristics of smallholders throw up significant challenges for the explanatory applicability of GPN 2.0 for rural development, at least as it has been developed so far. A key challenge is that smallholders cannot be considered equivalent to ‘firms’ as conceived in GPN 2.0. To overcome this problem, this paper argues for bringing a livelihoods perspective to bear on GPN 2.0. We illustrate the usefulness of this approach through reference to a case study of potato contract farming in Maharastra, India.

Deriving a global production network type in times of uncertainty – a simulation based approach

2021 ◽  
Vol 75 (4) ◽  
pp. 552-575
Author(s):  
Shuangqing Liao ◽  
Adrian Rüegg ◽  
Roman Hänggi
Keyword(s):  
Positive Impact ◽  
Integrated Approach ◽  
Management Problem ◽  
Production Network ◽  
Production Networks ◽  
Global Production Networks ◽  
Local Approach ◽  
Wide Range ◽  
Global Production Network ◽  
Network Type

Global production networks are highly complex to manage and constantly to optimize. Recent developments such as political power changes, pandemic crises or increasing trade hurdles have significantly altered the risk exposure of global production set-ups. We use optimization and simulation tools to derive a suitable network type. We develop a global cross-shipping strategy with an integrated approach combining heuristics and simulation. We quantify the impacts of different uncertainties, such as plant closure and high demand variation with simulation, and it to compare to a local-to-local production network. Our approach makes the model easy to implement and close to real-world processes. This paper provides support for production network decision-making. We present a scientifically sound and practically feasible approach to an important actual business management problem. The developed integrated approach does not require assumptions about the production network structure or policies and is therefore applicable to a wide range of settings. In our case study, we quantify the positive impact of a global cross-shipping production network in comparison to a local-to-local approach. The result of our study helps to adjust the needed strategic and operational measures to manage a global production network.

Hybrid governance and extraterritoriality: Understanding Singapore's state capitalism in the context of oil global production networks

2021 ◽  
pp. 0308518X2110481
Author(s):  
Neil McGregor ◽  
Neil M. Coe
Keyword(s):  
State Ownership ◽  
The State ◽  
Integrated Analysis ◽  
Production Network ◽  
Private Governance ◽  
Production Networks ◽  
Global Production Networks ◽  
State Capitalism ◽  
Hybrid Governance ◽  
Global Production Network

This paper explores the intersections and overlaps between state capitalism and global production networks. A key feature of the so-called new state capitalism is the combination of state ownership and corporatisation, which creates a system that can be characterised as a hybrid of public–private governance in both corporate and network terms. Moreover, the internationalisation of state hybrids adds an extraterritorial dimension to the state, which can influence the configuration and governance of global production networks. This paper develops a conceptual framework (H–E–N) that foregrounds the relationships between hybrid governance (H), extraterritoriality (E) and global production network configurations (N), thereby promoting an integrated analysis of the implications of the new state capitalism for global production networks. This framework is mobilised to explain how state capitalism in Singapore has influenced the development of the city-state's position in upstream, midstream and downstream oil global production networks over the 1959–2019 period. The study demonstrates that hybrid governance, as part of a wider strategy of state capitalism, has been critical in the development of Singapore's position in oil global production networks. The hybrid nature of the institutional forms associated with state ownership – for instance state-owned enterprises and sovereign wealth funds – goes beyond market facilitation to encompass active state participation in markets. Hybrid governance not only allows the state to influence domestic outcomes but – through the extraterritorial strategies of hybrid entities – can also influence global production network configurations beyond its borders.

scholarly journals Filtering strategic coupling: territorial intermediaries in oil and gas global production networks in Southeast Asia

2018 ◽  
Vol 19 (4) ◽  
pp. 829-851 ◽  
Author(s):  
Moritz Breul ◽  
Javier Revilla Diez ◽  
Maxensius Tri Sambodo
Keyword(s):  
Economic Development ◽  
Southeast Asia ◽  
Global Economy ◽  
Oil And Gas ◽  
Explanatory Power ◽  
Production Network ◽  
Production Networks ◽  
Global Production Networks ◽  
Global Production Network

Abstract The Global Production Network (GPN) approach has not yet considered the importance of territorial intermediaries for strategic coupling. This article demonstrates how the prospects of strategic coupling for the case of Vietnam and Indonesia with the oil and gas GPN are affected by the gateway role of Singapore. Based on interviews, the analysis reveals how Singapore influences regional economic development along the GPN through different filtering mechanisms, limiting the potential for strategic coupling for Vietnam and Indonesia. For GPN research, the identified filtering mechanisms illustrate how the territoriality of GPNs contributes to differentiated territorial outcomes. The findings therefore indicate the need to intensify the appreciation of the particular territorial configuration of GPNs as this yields considerable explanatory power for understanding the unequal contours of the global economy.

Global production network dis/articulations in Zanzibar: practices and conjunctures of exclusionary development in the tourism industry

2019 ◽  
Vol 19 (4) ◽  
pp. 943-971 ◽  
Author(s):  
James T Murphy
Keyword(s):  
Large Scale ◽  
Tourism Industry ◽  
Structural Factors ◽  
Production Network ◽  
Production Networks ◽  
Global Production Networks ◽  
Development Outcomes ◽  
Context Specific ◽  
Global Production Network ◽  
Political Economic

Abstract Recent assessments of economic geographers’ work on global production stress the need for improved understandings of the immanent, structural and contingent drivers of disarticulations—uneven and exclusionary development outcomes that often occur when places become connected to global production networks (GPN). Some argue that a productive approach is to view the places or regions linked to GPN as ‘conjunctures’ of context-specific and multi-scalar processes, social formations, power relations, histories and structures that shape the quality of GPN couplings and help to produce disarticulations. This article argues that an epistemological focus on the practices of firms connected to GPN can yield insights into industry-specific processes (e.g. value creation, upgrading) and region- or place-specific conjunctural factors that produce disarticulations. The approach is elaborated on and applied illustratively to the case of Zanzibar’s (Tanzania) tourism industry, a sector that has grown rapidly but in a manner that has excluded many of the archipelago’s residents from the benefits of increasing integration into GPN. The practices of Zanzibari enterprises and foreign-owned resorts show how local enterprises are increasingly marginal in tourism GPN, while large-scale resorts and non-local firms capture and subsequently offshore much of the value generated by the industry. A qualitative analysis of these practices highlights how they are shaped in part by the conjuncture of several structural factors and processes—political, economic, racial and technological—that help to produce disarticulations in Zanzibar.

scholarly journals A comprehensive KPI network for the performance measurement and management in global production networks

2021 ◽  
Author(s):  
B. Verhaelen ◽  
F. Mayer ◽  
S. Peukert ◽  
G. Lanza
Keyword(s):  
Performance Measurement ◽  
Corporate Strategy ◽  
Performance Indicator ◽  
Production Network ◽  
Manufacturing Companies ◽  
Production Networks ◽  
Global Production Networks ◽  
Performance Review ◽  
And Performance ◽  
Corporate Level

AbstractThe trend of globalization has led to a structural change in the sales and procurement markets of manufacturing companies in recent decades. In order not to be left behind by this change, companies have internationalized their production structures. Global production networks with diverse supply and service interdependencies are the result. However, the management of global production networks is highly complex. Key performance indicator (KPI) networks already exist at the corporate level and site level to support the management of complex systems. However, such KPI networks are not yet available to support the management of entire production networks. In this article, a KPI network for global production networks is presented, which links the key figures of the site level and the corporate level. By integrating both levels into a comprehensive KPI network, cause and effect relationship between the production-related KPIs and the strategic KPIs of a corporate strategy become transparent. To this end, this KPI network is integrated into a Performance Measurement and Management (PMM) methodology. This methodology consists of three phases: performance planning, performance improvement, and performance review. For testing the practical suitability, the PMM methodology is applied to the production network of an automotive supplier using a simulation model to estimate the effects of proposed improvement actions of the methodology.

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