Supplier Strategy in Global Value Chains: Shaping Governance and Profiting from Upgrading

Sako, Mari and Zylberberg, Ezequiel (2017) Supplier Strategy in Global Value Chains: Shaping Governance and Profiting from Upgrading. Socio-Economic Review.

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Abstract

The growth of emerging market firms with a global presence highlights the need to better understand how supplier strategy influences global value chains (GVCs). We respond to this need by applying corporate strategy and technology strategy to improve the predictive and prescriptive power of GVC theory. Under what circumstances can suppliers in GVCs shape governance and profit from upgrading? Using corporate strategy, we argue that supplier strategy concerning make-or-buy decisions and buyer diversification can effect a change in governance mode. Using technology strategy, we identify appropriability regimes and complementary assets as essential pre-conditions for suppliers capturing value from upgrading. Our central contribution is in developing an integrative theoretical framework for analyzing how suppliers alter governance over time, and how they capture the value they create by upgrading, resulting in shifts in value chain polarity. This framework has significant implications for economic development.

Item Type: Article
Keywords: International business
Subject(s): International business
Date Deposited: 23 Oct 2017 15:11
Last Modified: 16 Nov 2017 13:42
Funders: N/A
URI: http://eureka.sbs.ox.ac.uk/id/eprint/6606

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