How Do International Trade Shocks Propagate Through Domestic Supply Chains? Connecting World Input-Output Tables and Firm-Level Supply Chain Data

2021 ◽  
Author(s):  
Hiroyasu Inoue
2020 ◽  
Vol 4 (3) ◽  
pp. 5-19
Author(s):  
Hubert Escaith ◽  
Sangeeta Khorana ◽  
William A. Kerr

As the world economy has become increasingly integrated the spectre of transnational supply chains has become a central feature of globalisation. The smooth and unfettered working of transnational supply chains has facilitated efficiency increasing changes to business operations (such as just in time inventory management). The automotive sector worldwide has been at the forefront of internationally integrated supply systems. The European Union (EU) has, in part, been structured to reduce friction in Europe-wide supply chains through the single market. Transnational supply chains are at the heart of United Kingdom (UK) – EU trade, and the UK’s departure from the EU’s single market (Brexit) will increase friction in international trade. This case study of the UK’s automotive sector uses a social network approach to analyse supply chain linkages between the UK, EU and other trading partners, and how these could be impacted as a result of Brexit. We use data from Trade in Value Added (TiVA) and World Input-Output Database (WIOD) to map supply chains, estimate total value-added in exports and examine how Brexit is likely to impact the competitiveness of UK exports. Results confirm that the UK’s automotive sector is closely integrated with the EU. To offset the loss of UK’s export competitiveness after Brexit, trade facilitation measures complemented with a duty drawback scheme could be an option in the short run. Policy measures are, however, unlikely to replace the benefits of duty-free and frictionless access enjoyed under single market trading arrangements. This suggests that the UK automotive sector, which is primarily comprised of globally active firms, may have to reconfigure supply chain arrangements and in the long run alter how decisions pertaining to locations are made. Keywords: Brexit, global value chains, input-output linkages, WIOD.


2017 ◽  
Vol 71 (4) ◽  
pp. 510-535 ◽  
Author(s):  
Jingqi Zhu ◽  
Glenn Morgan

The focus on inter-firm governance relations within global supply chains analysis has left social relations at workplaces as a ‘black box’ and relatively underdiscussed. Through an in-depth, comparative study of two Chinese IT service providers for Japanese clients, this article explores how the work and employment relations in the supplier firm are shaped by the institutional contexts of both the supplier firm and the lead firm as well as by the nature of the global supply chain in which they are located. The article shows how the intersection of global supply chains and local institutional environments creates potential gaps between what is required by the lead firms and what is feasible within the supplier firms. Therefore, managers in the supplier firm have to negotiate ways of managing these expectations in the light of their own institutional constraints and possibilities. We identify three forms of adaptation made by the suppliers that we describe as wholesale adaptation, ceremonial adaptation and minimal adaptation to lead firms’ expectations. We argue that these interactions and forms of adaptation can be extended and explored more generally in global supply chains and provide the basis for a fruitful integration of institutional approaches with global supply chain analysis.


Author(s):  
Shikha Aggarwal ◽  
Manoj Kumar Srivastava ◽  
Sangeeta Shah Bharadwaj

In the era of turbulent environment, handling disruptions and building resilience is of prime importance to businesses. Most literature on building resilience in a supply chain is organization-focused and discusses firm-level abilities to bounce back after a disruption. In this study, the authors explored and defined collaborative resilience in a supply chain. Specifically, a case study approach across five supply chains was followed. Through this research, an empirical definition and understanding of collaborative resilience in supply chains was derived as the finding of the study. To the best of our knowledge, this is the first empirical research to develop a definition of collaborative resilience in supply chain. This study may strike many future research studies for research on the phenomenon of collaborative resilience in supply chains.


2021 ◽  
Vol 8 (1) ◽  
Author(s):  
Heran Zheng ◽  
Yangchun Bai ◽  
Wendong Wei ◽  
Jing Meng ◽  
Zhengkai Zhang ◽  
...  

AbstractGlobal production fragmentation generates indirect socioeconomic and environmental impacts throughout its expanded supply chains. The multi-regional input-output model (MRIO) is a tool commonly used to trace the supply chain and understand spillover effects across regions, but often cannot be applied due to data unavailability, especially at the sub-national level. Here, we present MRIO tables for 2012, 2015, and 2017 for 31 provinces of mainland China in 42 economic sectors. We employ hybrid methods to construct the MRIO tables according to the available data for each year. The dataset is the consistent China MRIO table collection to reveal the evolution of regional supply chains in China’s recent economic transition. The dataset illustrates the consistent evolution of China’s regional supply chain and its economic structure before the 2018 US-Sino trade war. The dataset can be further applied as a benchmark in a wide range of in-depth studies of production and consumption structures across industries and regions.


2017 ◽  
Vol 117 (10) ◽  
pp. 2171-2193 ◽  
Author(s):  
Gokhan Egilmez ◽  
N. Muhammad Aslaam Mohamed Abdul Ghani ◽  
Ridvan Gedik

Purpose Carbon footprint assessment requires a holistic approach, where all possible lifecycle stages of products from raw material extraction to the end of life are considered. The purpose of this paper is to develop an analytical sustainability assessment framework to assess the carbon footprint of US economic supply chains from two perspectives: supply chain layers (tiers) and carbon footprint sources. Design/methodology/approach The methodology consists of two phases. In the first phase, the data were collected from EORA input output and environmental impact assessment database. In the second phase, 48 input-output-based lifecycle assessment models were developed (seven CO2 sources and total CO2 impact, and six supply chain tiers). In the third phase, the results are analyzed by using data visualization, data analytics, and statistical approaches in order to identify the heavy carbon emitter industries and their percentage shares in the supply chains by each layer and the CO2 source. Findings Vast majority of carbon footprint was found to be attributed to the power generation, petroleum refineries, used and secondhand goods, natural gas distribution, scrap, and truck transportation. These industries dominated the entire supply chain structure and found to be the top drivers in all six layers. Practical implications This study decomposes the sources of the total carbon footprint of US economic supply chains into six layers and assesses the percentage contribution of each sector in each layer. Thus, it paves the way for quantifying the carbon footprint of each layer in today’s complex supply chain structure and highlights the importance of handling CO2 source in each layer separately while maintaining a holistic focus on the overall carbon footprint impacts in the big picture. In practice, one size fits all type of policy making may not be as effective as it could be expected. Originality/value This paper provides a two-dimensional viewpoint for tracing/analyzing carbon footprint across a national economy. In the first dimension, the national economic system is divided into six layers. In the second dimension, carbon footprint analysis is performed considering specific CO2 sources, including energy production, solvent, cement and minerals, agricultural burning, natural decay, and waste. Thus, this paper contributes to the state-of-art sustainability assessment by providing a comprehensive overview of CO2 sources in the US economic supply chains.


Author(s):  
Mihaela Gabriela Belu

This paper’s objectives are the following: describing the impact of the COVID 19 crisis on the mechanism of export-import operations; the evolution of Romania’s export-import activities during 2020-2021 and identifying some recommendations meant to help companies fight the sanitary crisis’ effects. The study is based on a theoretical research investigating the impact of the sanitary crisis on the management of an export-import operation. Due to disruptions in global supply chains, the companies operating in the field of international trade had to redefine their operating strategies for the foreign markets. The magnitude of these changes related to the transactional mechanism specific to export-import activities will lead to profound mutations in the global supply chain, with benefits in term of resilience in all phases of the supply chain.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yulia Aray ◽  
Anna Veselova ◽  
Dmitri Knatko ◽  
Anna Levchenko

Purpose In reaction to the environmental challenge, many firms are looking for the ways how to integrate sustainability into their operations, business models and strategies. Very often sustainable initiatives go beyond the boundaries of a focal firm engaging a wide variety of partners within the supply chain. In conditions of countries with institutional deficiencies and voids such as emerging economies, the task of sustainability integration is challenging as many critical conditions needed for sustainability development are missing. To understand how firms can integrate sustainability initiatives in their supply chains under the conditions of environmental uncertainty, this paper aims to investigate firm-level and supply chain drivers that stimulate sustainability implementation in Russian firms. Design/methodology/approach Using the sample of 273 large Russian firms the paper explores how firm-level drivers such as innovativeness, risk-taking and internationalization, as well as collaboration and integration in the supply chain are related to sustainability performance and sustainability transformation in supply chain. The hypotheses are tested using regression analysis and the bootstrapping technique. Findings The study indicates the positive association between sustainability performance and sustainability transformation of the firm and such strategic drivers as a firm’s innovativeness and internationalization. The positive moderating effect of environmental uncertainty was found for innovativeness indicating that innovative firms show better sustainable performance in the supply chain under uncertain conditions. Also, the findings indicate that environmental uncertainty positively moderates the relationships between a firm’s transformation for sustainability, its internationalization and supply chain integration and coordination. Originality/value The obtained results contribute to a better understanding of mechanisms that drive firms’ sustainability performance and transformation in conditions of emerging markets. The paper provides an adaptation and empirical testing of Silvestre’s (2015) theoretical model for sustainable supply chain management in emerging economies.


2014 ◽  
Vol 19 (4) ◽  
pp. 445-454 ◽  
Author(s):  
Timo Seppälä ◽  
Martin Kenney ◽  
Jyrki Ali-Yrkkö

Purpose – The purpose of this paper is to integrate the issue of transfer pricing and logistics costs to understand trade statistics and the operation of supply chains by using invoice-level data for a single globally sourced product of a multinational firm.Supply chains are central to understanding wealth creation and capture in an increasingly globalized production system. The increasing disaggregation and dispersal of supply chains is profoundly affecting the geographical distribution of value added, input costs and profits of multinational firms. This suggests that understanding supply chains and where the activities and accounting for these activities take place is crucial for understanding the causes and consequences of contemporary globalization. Design/methodology/approach – By using a case study of a single product and invoice-level data, it was possible to capture the actual costs incurred by a firm using a relatively simple global supply chain. The authors show how corporate intra-firm transfer pricing determines which business unit and location captures profits. A single firm provided the core data in this paper, including product- and firm-level information on intermediate product prices and input costs for all internal transfers. Findings – This paper advances interesting insights into trade in value added and shows that, though not often considered significant, transfer pricing is a critical issue for understanding the geographical distribution of value added. The authors conclude with some observations about the nature of global supply chains, the value of international trade statistics and a hidden advantage of an integrated firm operating on a global scale the ability to somewhat arbitrarily select the activities to which profits should be allocated. For nation states, as supply chains become more international and complex, critical measures, such as gross domestic product, worker productivity, etc., are becoming ever more imprecise. The economic geography of cost of inputs and profits continue to separate as multinational enterprises drive the disaggregation of value creation and value capture. Research limitations/implications – The case study facilitates an understanding of complex supply chain issues, thereby extending and deepening findings from previous research. This case study of transfer pricing in supply chains will assist other scholars in better formulating testable propositions for their studies and sensitize them to the internal complexities corporate managers face when making operationalizing decisions. Originality/value – The case study suggests that understanding the configuration of and accounting in supply chains is vital for accurately measuring any national economic statistics. This case study provides some bottom-up evidence that national accounts and international trade economics undertaken without a deep understanding of supply chain organization is likely to generate misleading results. The methodology of using invoice-level data can provide a more granular understanding of how supply chains are organized and where the value is added and captured. For practitioners, the data suggest that firms should think very carefully about which of their activities generate the most value, and value those accordingly.


2020 ◽  
Vol 11 (SPL1) ◽  
pp. 1054-1057
Author(s):  
Bindu Swetha Pasuluri ◽  
Anuradha S G ◽  
Manga J ◽  
Deepak Karanam

An unanticipated outburst of pneumonia of inexperienced in Wuhan, , China stated in December 2019. World health organization has recognized pathogen and termed it COVID-19. COVID-19 turned out to be a severe urgency in the entire world. The influence of this viral syndrome is now an intensifying concern. Covid-19 has changed our mutual calculus of ambiguity. It is more world-wide in possibility, more deeply , and much more difficult than any catastrophe that countries and organizations have ever faced. The next normal requires challenging ambiguity head-on and building it into decision-making. It is examined that every entity involved in running supply chains would require through major as employee, product, facility protocols, and transport would have to be in place. It is an urgent need of structuring to apply the lessons well-read for our supply chain setup. With higher managers now being aware of the intrinsic hazards in their supply chain, key and suggestions-recommendations will help to guide leader to commit to a newly planned, more consistent supply chain setup. Besides, the employees’ mental health is also a great concern.


2018 ◽  
Vol 44 (277) ◽  
pp. 93-107
Author(s):  
Aurélien Rouquet ◽  
Christine Roussat ◽  
Valentina Carbone

La littérature ensupply chain management(SCM) a délaissé un type desupply chains : lesconsumer-to-consumer(C2C)supply chains, qui relient les consommateurs lorsqu’ils échangent des produits. Reposant sur une approche conceptuelle, cet article montre à la communauté logistique et SCM l’intérêt qu’il y a à explorer cessupply chains. L’article dégage quatre spécificités de ces chaînes : 1) leur orientation perpendiculaire auxsupply chainsclassiques, 2) le fort amateurisme de ses acteurs, 3) leur large encastrement social, 4) leur structure plus directe. L’étude des C2Csupply chainsest susceptible d’élargir le spectre du SCM en y intégrant plus fortement le consommateur.


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