scholarly journals The Role of the Global Value Chain in Improving Trade and the Sustainable Competitive Advantage: Evidence From China’s Manufacturing Industry

2021 ◽  
Vol 9 ◽  
Author(s):  
Shi Deqiang ◽  
Chen Zhijun ◽  
Marzena Hajduk-Stelmachowicz ◽  
Abdul Razaque Larik ◽  
Muhammad Zahid Rafique

In the domain of globalization, the global value chain (GVC) is formed across diverse economies. Owing to the expansion of economic globalization and the resultant global trade liberalization, the geographical isolation of production and consumption has resulted in the transfer of polluting emissions from advanced economies to developing states. Developing economies, falling in the middle and low end of the GVC, have to strive hard to expand their production in the GVC, while simultaneously addressing the consequent environmental damage and attending to the core environmental concerns of sustainable growth, energy preservation and drastic cuts in CO2. This paper addresses how manufacturing subsidiaries can improve their low-carbon innovation ability and help to achieve a sustainable competitive advantage through the embedded GVC. Data were gathered employing interview and survey methods, 31 manufacturing companies and 56 enterprise groups across 16 Chinese provinces were selected as the case study. A partial least square structural equation modelling was adopted to analyse the responses. The results indicate that the embedded GVC significantly enhances low-carbon innovation capability and promotes a sustainable competitive advantage. This study proposes that companies should continuously identify high-quality resources from the GVC and discover ways of integrating internal and external carbon innovation resources to form innovation capabilities.

2019 ◽  
Vol 9 (2) ◽  
Author(s):  
Ika Purwanti ◽  
Muhammad Dzikri Abadi ◽  
Umar Yeni Suyanto

This study would like to explains conceptual green marketing and its role as a source sustainable competitive advantage in industrial revolution 4.0. The environmental issue is a sizzling topic nowadays as almost every country’s government and society has started to be more aware of these issues. Plus, there is currently a phenomenon of industrial revolution 4.0 which demands business practices to be more consumer-oriented. Public concern over environmental damage has made marketers know the needs and value of environmentally friendly marketing, namely green marketing. which is a new strength to create a sustainable competitive advantage. This study is a library research gathering and analyzing information from related references and theories, which have become the basic foundation and sources in analyzing problems in this research. This study seeks to offer Green Marketing ideas as the latest approach in dealing with various business threats. The results show that green marketing able to encourage companies to prepare themselves faster and better, the definition of green marketing has changed over time according to the growing relevance of environmental sustainability. 


Author(s):  
Johan Oscar Ong ◽  
Masyhudzulhak Mahazan

The industrial growth and technology development need competent human resource in every business organization. The presence of millennial and Generation Z has increasingly dominated workforce presenting a new challenge for organizations to provide work climate that supports their development. It has been surveyed that millennial generation is tech savvy but less patient to stay in an organization. The ability to retain and develop millennial and generation Z is the organization's key success factor to continuously improve its business performance and sustainable growth. The new approach HR management strategies are needed to make sure achieving the business outcome (growth revenue, growth profit, lower cost). The Framework of Organizational Sustainability Model in era 4.0 is designed to map out the HR strategies in order to achieve a sustainable competitive advantage. The organizational key drivers would be the input for this model to support employee core competencies so as to give their outstanding performance and increase productivity. Having skills and experience are not enough for employees, they have to make a commitment and well motivated that is shaped by a strong organizational culture and climate. The current research has provided AMO (Ability, Motivation, Opportunity) model approach to support for the key theoretical propositions. The study is imperative for practitioners and organizations since it offers Human Resource Management strategies as a suggestions and guidelines to develop human capital for improving organizational performance and for gaining sustainable competitive advantage.


Author(s):  
H. M. Belal ◽  
Kunio Shirahada ◽  
Michitaka Kosaka

This chapter proposes a knowledge space concept and a recursive approach to servitizing in the manufacturing industry. Manufacturing companies need to move up the value chain and compete on the basis of value delivered rather than on the basis of typical products. Therefore, more corporations are adding value to their core corporate offerings through services, which is called servitization, and the strength of service activities within the manufacturing industry (servitization) has become the main source of competitive advantage. This chapter identifies two exclusive approaches to adapting servitization in the manufacturing industry called the knowledge space concept and recursive approach, which also explains the value co-creation process with customers through integrating “B-to-B to C,” which produces a company that is a value provider.


Author(s):  
David L. Bahn

The strategic benefit of IT (information technology) in supporting business functions is often seen as the basis for competitive advantage that is sustainable. The value chain concept has been a handy tool widely utilized in business strategy analysis to match firm competency in performing business activities with the achievement of sustainable marketplace advantage. When it comes to the assessment of the competitive value of information technology, the value chain concept seems to either categorize IT as a support activity or to overly narrow the scope of IT’s role in achieving sustainable competitive advantage. This chapter reviews the concepts of the value chain and sustainable competitive advantage. Short case studies from a number of industries are presented in order to illustrate the limitations of using the value chain to describe information technology’s role in achieving sustainable competitive advantage. These examples demonstrate the subtle and often complex relationship between information technology and competitive advantage.


Author(s):  
Mark R. Nelson

The strategic benefit of IT (information technology) in supporting business functions is often seen as the basis for competitive advantage that is sustainable. The value chain concept has been a handy tool widely utilized in business strategy analysis to match firm competency in performing business activities with the achievement of sustainable marketplace advantage. When it comes to the assessment of the competitive value of information technology, the value chain concept seems to either categorize IT as a support activity or to overly narrow the scope of ITs role in achieving sustainable competitive advantage. This chapter reviews the concepts of the value chain and sustainable competitive advantage. Short case studies from a number of industries are presented in order to illustrate the limitations of using the value chain to describe information technologys role in achieving sustainable competitive advantage. These examples demonstrate the subtle and often complex relationship between information technology and competitive advantage.


2019 ◽  
Vol 2 (2) ◽  
pp. 1-7
Author(s):  
Yakubu Salisu ◽  
Lily Julienti

The increasing globalization and liberalization of trade have posed onto manufacturing small and medium enterprise (SMEs) in developing economies of Africa a survival and growth challenges. Nevertheless, the resource-based-view (RBV) has given rise to a perspective that views a firm’s intangible assets as strategic resources with the potential to create and enhance sustainable competitive advantage in both local and global markets. Based on the peculiarity of SMEs in Africa, this paper develops and validate a conceptual model on the role of strategic organizational capabilities in improving the competitive advantage of SMEs for sustainable development in developing economies of Africa. Precisely, six variables were identified and reviewed as strategic capabilities. A total number of 81 valid questionnaires were retrieved from owners/managers of SMEs in Yobe state Nigeria and used to evaluate the reliability and validity of the adopted measures. The result of Cronbach’s Alpha test reveals a satisfactory value for all the variables under study. Specifically, innovation, learning, management, marketing, relational and technological capabilities have been established to be reliable strategic capabilities that would effectively and efficiently create and improve the sustainable competitive advantage of SMEs in developing economies.


2021 ◽  
pp. 100-119
Author(s):  
Justin Barnes ◽  
Anthony Black ◽  
Lorenza Monaco

Through a series of government plans, the South African automotive industry has achieved undeniable success, especially in terms of its export orientation. The industry uses efficient technologies and is integrated into global markets. However, major structural weaknesses exist. Export growth has not been accompanied by increasing local content, investment has been modest and employment creation insignificant. Vehicle and component imports into the domestic market are high and the industry runs significant trade deficits. Most core technologies are imported, including advanced power trains and electronics. This chapter considers the structural impediments to the industry’s development, as well as issues related to ownership and power relations between the state and multinational firms. Analysing the potential for further localization and the deepening of the supply chain, the chapter considers global technology developments, domestic productive capabilities, and power dynamics in the global value chain (GVC). The chapter argues that state–business bargaining dynamics have negatively affected this potential. While efforts to deepen the supply chain would allow for more sustainable growth, the achievement of such goals is impossible without concerted commitment from all stakeholders.


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