Evolution in inter-firm governance along the transport biofuel value chain in maritime Silk Road countries

We investigate how value chain governance can evolve in the transport biofuel sector beyond logistics and operations optimization, drawing on cases of eighteen manufacturers in four Belt and Road countries. We find that key motivations for vertical integration include control of strategic factors such as security of supply and gaining access to the retail market, subject to inter-institutional and intra-organizational barriers. We contribute to a theory of governance mode selection by suggesting plural governance mode offers a key strategic choice under institutional constraints. In BRI countries, plural mode could be less disruptive when integrating value chains.ESRC-Cambridge Commonwealth Trust-Dorothy Hodgkin Postgraduate Awar

Global and regional sourcing of ICT-enabled business services: upgrading of China, Hong Kong and Singapore along the global value chain

Offshoring, as part of globalisation, first started decades ago with manufacturing processes disintegrated along the global value chain and dramatically redistributed to low-cost regions. The next global shift of work involving ICT-enabled business services has arisen since the 1990s, especially featuring the success of India’s supplier role. The possibilities for the Global South to move up the value ladder are well demonstrated by the achievements of the newly industrialised economies in East Asia in the first shift and of India in the second. In the services sector, however, potential for upgrading is conditioned by quality-based elements, such as trust, culture and language, which vary both between producing and market areas. Flows are increasingly multi-directional, requiring attention to the neglected issue of demands from fast-growing Southern economies. So how do locations and firms in the Global South attempt to upgrade in the regime of rising services offshoring? The Indian experience especially in serving Anglophone markets in the Global North has been widely documented – but not that of East Asian economies, with their distinct characteristics and strong historic, ethnic and cultural ties with each other. This study examines the upgrading possibilities and constraints of China, Hong Kong and Singapore along the global services chain. For cross-case analysis, it focuses on three specific sets of services, including information technology, finance and accounting, and customer contact services. The concepts of global value chain, competitive advantage and capabilities are applied to reconstruct the phenomenon of services offshoring from both the demand and supply perspectives in the selected locations, and synthesise the dynamics between locational characteristics and firm strategies. A series of distinct upgrading strategies are identified, involving mixes of manufacturisation, knowledge-intensification and deepening relational capabilities to exploit both regional advantages of language/cultural proximity and established global links

Trade induced growth impacts of corporate entry in the food sector: A case study of fruits and vegetables sub sector in the Punjab State of India

Study indicated that the entry of corporate sector in the Punjab State is both in retail and wholesale trade of the fruits & vegetables sub sector. At the organized retail stores these companies have provided its consumers a single window service for the various product assortments while within the fruits & vegetables category (have minuscule scales) widened the product selection choices. Corporate entry in wholesale trade has linked several product specific production belts with medium to high income consumers through various market segments such as organized stores, traditional wholesale/retail markets and the food service. These companies have also provided product variety through imports while opportunities for crop diversification towards higher value crops through exports. In the fruits & vegetables sub sector companies engaged in the retail trade have adopted for short to medium while those in wholesale trade for medium to long-term more sustainable approaches for the sourcing of supplies to build up competitive advantages. This has started generating growth in the Punjab state that has manifested in terms of higher incomes for as the partner farmers and creation of employment for the skilled, semi-skilled and unskilled manpower throughout the supply chain. As the market sizes of these companies expand and diversify in the domestic/global markets it shall enhance growth thereby magnify its impacts. --Fruits & vegetables trade,corporate groups,growth

What lies between market and hierarchy? Insights from internalization theory and global value chain theory

In this paper, we suggest that internalization theory might be extended by incorporating complementary insights from GVC theory. More specifically, we argue that internalization theory can explain why lead firms might wish to externalize selected activities, but that it is largely silent on the mechanisms by which those lead firms might exercise control over the resultant externalized relationships with their GVC partners. We advance an explanation linking the choice of control mechanism to two factors: power asymmetries between the lead firms and their GVC partners, and the degree of codifiability of the information to be exchanged in the relationship

Contract Farming in Developing Countries: An overview

This paper presents a review of the literature on contract farming (CF), focusing on recent empirical research on the economic impact of CF. The paper starts with an explanation of the phenomenon of CF, providing definitions, typologies, models and objectives. Using a Transaction Costs Economics framework, the paper explains for which products and market CF seems most suitable. The empirical literature on CF is assessed by answering three questions: Why do smallholders engage in CF? Are smallholders included in or excluded from CF arrangements? What impact does CF have on smallholder income and rural development? Finally, the paper identifies the conditions under which smallholders are most likely to benefit from CF schemes

Global value chains: Potential synergies between external trade policy and internal economic initiatives to address the strategic dependencies of the EU

Global value chains enable two-thirds of international trade, notably for the EU. The EU wants to preserve its commercial links with third countries and organisations to make up for trade disruptions. This study examines sustainable supply of raw materials, commodities, and critical goods using the EU's Open Strategic Autonomy concept. It examines which raw material are crucial for sustainable supply and necessary for the green transition. The paper examines EU internal legislation and international cooperation instruments to determine the EU's disruption risk. It evaluates the economic impact of EU preferential trade agreements on raw material availability. The study illustrates the political and economic relevance of raw material partnerships and plurilateral and bilateral trade agreements. It analyses the EU's toolbox for safeguarding its interests and making independent trade choices to counteract other actors' unfair practices and intervention. Finally, the paper examines regulatory frameworks, international alliances, and activities to find ways to strengthen global value chains in critical EU industries

Value chain governance in the age of platforms

Global value chain (GVC) theory focuses globalisation in the late 20th century. While the theory claims to apply generally to interfirm relationships, much of GVC analysis has focused on the incorporation of developing country manufacturers into the supply chains of global lead firms. This literature has frequently expressed doubts about whether integration into such chains offers opportunities for innovation and upgrading. More recently, globalised production has seen the emergence of market and technology platforms and platform leaders. The distinctive feature of platforms is that they require innovation by other companies to turn platforms into products. Analysis of platform governance can contribute to the further development of GVC governance theory. Using secondary material on platform leaders such as Intel and Apple and primary research on Chinese-owned mobile phone companies, the paper shows how examination of governance in the context of platforms allows a recuperation of understudied and undertheorised elements of GVC governance theory

Integrating developing country manufacturing industries into global supply chain

Purpose: Due to globalization of manufacturing activities, the arena of competition and competitiveness advantage is moving from firms towards supply chains and networks. With the recent advancement of information and communication technologies this participation are becoming as common business practice in developed countries firms. Companies were more integrated into the world market for the global nature of the sourcing, manufacturing and distribution. These changes create both challenges and opportunities for the manufacturing industries in developing countries. The objective of this paper is to examine the level of inter-organizational and intra-organizational supply chain integration practices in developing country, Ethiopia. Design/methodology/approach: An industrial questionnaires survey was used to collect the current practices of the manufacturing industries in Ethiopia as an example of the developing countries. Descriptive statistics is primarily used for the analysis. Findings: Results show a low level of supply chain relationship both in intra and inter organizational supply chain integration level among members. Accordingly, such issues require much attention to facilitate a greater integration within the supply chains in the Ethiopian manufacturing industries. Research limitations/implications: The paper focuses on examining the practices of Ethiopian manufacturing industries empirical data. The interpretation of results should be taken with prudence. Originality/Value: The manufacturing industry in developing countries (MIDC) has been a part of the global supply chains for long time as a supplier of raw material and manufacturer of primary products. Currently, the MIDC is trying to access the different markets segment of the world even with new products starting from their local market to the complex and dynamic international market. Nevertheless, their supply chains are inefficient and hence, their competitiveness level far from the norm expected. The supply chain integration will bring positive impacts and benefits for manufacturers in developing countries if it adopted properly.Peer Reviewe

Agri-food business: Global challenges â Innovative solutions

The rise of a western-style middle class in many successful emerging economies like China currently is inducing deep structural changes on agricultural world markets and within the global agri-food business. As a result of both higher incomes and concerns over product safety and quality the global demand for high-quality and safe food products is increasing significantly. In order to meet the new required quality, globally minimum quality standards are rising and private standards emerging. All over the world these developments cause adjustments at the enterprise, chain and market levels. At the same time, the tremendously increasing demand for renewable energy has led to the emergence of a highly promising market for biomass production. This has far-reaching consequences for resource allocation in the agri-food business, for the environment, for the poor in developing countries and for agricultural policy reforms. The challenges increase with ongoing liberalisation, globalisation and standardisation, all of which change trade patterns for agricultural and food commodities, and influence production costs and commodity prices. The objective of the IAMO Forum is to show opportunities as well as risks for all participants of the food economy in the ongoing globalisation process: for small peasants in developing countries, farmers in Europe and globally active food enterprises and retailers. The success of enterprises depends on the ability to find innovative solutions with regard to the organisation of enterprises, chains, and markets, as well as future policy design. Concerning bio-energy strategies has to be identified to combat global warming most efficiently and concurrently attenuate the competition between "tank and table" on farmland. IAMO Forum 2008, as well as this book, would not have been possible without the engagement of many people and institutions. We thank the authors of the papers, as well as the referees. Furthermore we are highly indebted to MARLIES LOHR, NADINE GIEMSA and RONNY RECKE who in an outstanding way contributed to the organisation of the Forum. This is true as well for the IAMO administration, whose work we gratefully acknowledge. Many sponsors has funded the IAMO Forum 2008. We are very grateful to the German Research Foundation (DFG), The Federal Ministry of Food, Agriculture and Consumer Production in Germany, The Ministry of Cultural Affairs of the Federal State Saxony-Anhalt, Germany and last but not least the City of Halle. Further Conference sponsors are the BIONADE Corporation, Gaensefurther Mineral Water, The Wine Growers Association of the Region Saale-Unstrut, Germany, Obsthof am SüÃen See GmbH, Monsanto Company, KWS Saat AG, Sachsen-Anhalt-Tours, Baumkuchen Salzwedel and the Hallesches Brauhaus.Agribusiness, Agricultural and Food Policy, Agricultural Finance, Community/Rural/Urban Development, Industrial Organization, Institutional and Behavioral Economics, International Development, Marketing, Political Economy,

Managing from a distance in international purchasing and supply

International purchasing and supply management (PSM) teams have long faced the visibility and understandability challenges of managing geographically dispersed and culturally distant suppliers. Problems arising from inadequate monitoring and control over suppliers can be attributed to geographical and cultural distance, capability gaps, weak institutions, and supply market dynamism. With transaction costs theory as our lens, we examine how international geographically and culturally distant purchasing and supply management (PSM) teams control emerging economy suppliers with formal management controls. We use interview survey data on 339 international customer-Chinese supplier relationships using supplier perceptions of the extent to which performance measurement and monitoring practices are used by their primary customer in the purchase reorder decision and control. The results demonstrate that the cultural and, to a lesser extent, geographical distance between the customer and the supplier is associated with more extensive use of formal management controls. Also, we find the relationship between geographical or cultural distance and the importance of performance measurement is strengthened for suppliers of complex components