Index

Breaking up the Global Value Chain

ISBN: 978-1-78743-072-3, eISBN: 978-1-78743-071-6

ISSN: 1571-5027

Publication date: 4 August 2017

This content is currently only available as a PDF

Citation

(2017), "Index", Breaking up the Global Value Chain (Advances in International Management, Vol. 30), Emerald Publishing Limited, Bingley, pp. 339-347. https://doi.org/10.1108/S1571-502720170000030015

Publisher

:

Emerald Publishing Limited

Copyright © 2017 Emerald Publishing Limited


INDEX

Abstention outsourcing
, 239n8

Additive manufacturing
, 287

Advanced Manufacturing Supply Chain Initiative
, 148

Airbnb
, 30, 39

Amazon
, 30, 39

Amoco
, 68

Anadarko Petroleum
, 64

ANCOVA
, 220

Apple
, 36, 145, 218, 275

ARCO
, 68

Arctic gas
, 59

Ariete
, 9, 24n2

Arm’s length contracting
, 65

Asian financial crisis
, 86

Asset specificity
, 62

Asymmetric power relationships
, 220

AT Kearney
, 210n15

Back-reshoring
, 252

Back-shoring
, 85, 141–152, 247, 252–254, 259, 271, 272, 276, 285

in-house
, 144

for insourcing
, 144

motivations
, 146–149

outsourced
, 144

for outsourcing
, 144

research methodology
, 149–150

scope of
, 144–145

towards research agenda
, 150–152

trends of
, 145–146

Backsourcing
, 85, 252

Bailey Hydropower
, 145

Bandwagon effect
, 276

Bettio, Monica
, 8

Bharti
, 203–204

Big Data
, 287

Blankenship, Charles
, 124

Bosch
, 9

Boston Consulting Group
, 145, 147, 287

Bounded rationality
, 32

BP
, 56, 68

Statistical Review of World Energy
, 69–70

Braun
, 9, 16, 18, 25n7, 25n8

Brekke, Sigve
, 41, 46–49, 53

Brent
, 65

Burlington Resources
, 59

Business models
, 29–50

innovation
, 32–34

Buyer-driven chains
, 82

Buyer-supplier contracts, termination of
, 158

Buyin
, 90

Cappellini, Stefano
, 8

Ceschin, Roberto
, 8

Chevron
, 56, 68, 74, 77

China

De’Longhi’s ownership and location decisions
, 10–14

China Mobile
, 209n5

Cobb–Douglas production function
, 310

Commodities
, 12

Competence building
, 250

Competitive positioning
, 128

weakening of
, 128

ConocoPhillips
, 55–78

decision to break up global value chain
, 57–61

history of
, 58

Contract enforcement
, 160–161, 163–165, 167, 179n2, 180n7, 184–185, 188

Contracting systems
, 168–176

Contract viability
, 160, 161, 163–165, 167, 180n4

Core competencies
, 219

Corporate social responsibility
, 128

Cost-estimation errors
, 250

Country-of-origin effect
, 276

Cove Energy
, 64, 68

Critical Theory
, 130

Crude oil
, 64, 65

Currency risks
, 128

Damiani, Marzio
, 8

De’Longhi

local for global approach
, 18, 24

ownership and location decisions
, 3–25

value chain configuration of
, 15–21

Debt-effect
, 86

Devon Energy
, 64

Diagonal assets
, 76

“Digital Awakening,”
, 44

Digital service provider (DSP)
, 29–50

Digital transformation
, 29–50

defined
, 38–39

Disaggregation
, 7

Diversification
, 74–77

within-industry
, 75

Divisional incentives, managing
, 61

Domestic-owned firms (DOM)
, 84, 86, 88

Domino effect
, 261, 262

Drilling
, 63

Dtac Hangar
, 46

EBITDA
, 204

Economic crisis
, 158, 164, 167

Economic geography
, 141–152

Efficiency
, 220

Efficiency-seeking strategy
, 82, 83, 270, 283, 286

Elf Aquitaine
, 68

Endogeneity
, 235

Engineering Employers’ Federation (EEF)
, 150

Equilibrium multi-country sourcing analysis
, 173–176

Ericsson
, 35, 202, 203, 208

Espana

cost model
, 128–129

European Manufacturing Survey
, 149

Exogenous demand shocks
, 172–173

Experiential knowledge
, 313, 314, 321, 324–328

Experiential learning theory
, 191

Experimentation
, 32

Explicit knowledge
, 250, 253

Exploration and production (E&P)
, 64

Exporting strategies, of Turkish subsidiaries’

global financial crisis, impact of
, 81–106, 109–119

multinational subsidiaries, exporting strategies of
, 93, 93–99

panel data estimator, choosing
, 92, 94–95, 118–119

revolving doors panel, limitations and challenges of
, 100, 102–104

top-down revolving doors unbalanced panel
, 91

Externalization
, 4, 7, 8, 15, 62, 201, 218, 220

ExxonMobil
, 56, 60, 64, 68, 74–77

Facebook
, 39, 49

Facebook Messenger
, 36

Face-Time
, 36

Factoryless goods producers
, 218

Firm performance
, 217–240

Firm-specific advantages (FSAs)
, 190, 193, 198

5G
, 35

Foreign direct investment (FDI)
, 218, 234, 271, 274, 275, 280, 283, 285

Foreign R&D investment
, 293–306

embeddedness of affiliates in host countries
, 297–298

entry mode of affiliates in host countries
, 298–299

mandate of affiliates
, 296–297

4G
, 35–38

Fourth industrial revolution
, 287

Fragmented knowledge
, 262

Gazprom
, 68, 74

General Electric (GE)
, 124–125, 127, 128, 131, 145

“Global Backend” project
, 44

“Global Coordination” network
, 206

Global factory
, 4, 6, 7, 24

Global financial crisis (GFC), impact of

insourcing strategies
, 86–87, 90–91, 99–100, 101–102, 105

offshoring strategies
, 85, 90, 93, 95–99, 105

outsourcing offshoring strategies
, 85–86, 90, 100, 105

Turkish subsidiaries’ exporting strategies
, 81–106, 109–119

Global integration versus value-creating local responsiveness (GI-LR)
, 193–194

Globalization
, 4

versus regionalization
, 152

Global shift-backs
, 251–255, 257–264

Global sourcing
, 246–254, 256, 260–264

Global System for Mobile Communications (GSM)
, 35

Global Transformation Program
, 41

Global value chains (GVCs)
, 5, 6, 21, 22, 24, 158, 218, 246, 312–314, 317–320, 322–324, 327, 328, 329n1, 329n3, 329n4

breaking up, in oil and gas industry
, 67–69

construction of
, 125–126

shift in policy and limitations
, 319–320

weak participation and productivity for SMEs
, 314–318

Google
, 39, 49

Grameen Bank
, 209n11

Grameenphone Accelerator
, 46

Grameen Telecom Corporation

Village Phone Program of Grameenphone
, 209n11

Gross domestic product (GDP)
, 167

Group Executive Management (GEM)
, 41

Group Industrial Development (GID)
, 206, 207

Haier
, 131

Harmonized Tariff Schedule (HTS) code
, 165

Heritage Foundation

Property Rights index
, 161

High-Tech Strategy
, 2020, 148

Home-shoring
, 144

Huawei
, 202, 203

Hutchison Essar Limited
, 201

IBM
, 203

Import-substitution strategies
, 83

Indian Oil
, 74

Industrial districts (ID)
, 269–288

as manufacturing systems, internationalization of
, 272–274

Industry 4.0
, 147, 148

Information and communication technologies (ICTs)
, 6, 249

Information technology
, 4

Innovation
, 201, 205, 250, 251, 259, 262, 263, 272, 274–277, 283, 285, 287

business model
, 32–34

capacity
, 246, 248, 249, 274

competencies
, 246

lag
, 128

Inshoring
, 144

Insourcing
, 86–87, 90, 99–100, 101–102, 105, 275

Institutions
, 313, 314, 320, 321, 323–328

Integrated oil companies (IOCs)
, 56, 64, 65, 68, 70, 72–78

Integration strategies
, 81–106, 109–119

Intellectual property protection
, 128

Intellectual property rights
, 180n9

Interactive learning
, 250

Internalization
, 4, 7, 8, 15, 22, 62, 66, 218, 219

International business
, 141–152

International Country Risk Guide (ICRG)
, 160, 161, 167

Internationalization process
, 269–288

industrial districts, as manufacturing systems
, 272–274

value of manufacturing
, 274–277

Internet of Things
, 287

Inverse Mills ratio
, 234

Istanbul Chamber of Commerce (ISO)
, 87

Joint ventures (JV)
, 88

Kenwood
, 9, 16, 18, 20, 22

Kinder Morgan
, 64

Knowledge
, 245–264

explicit
, 250, 253

external
, 248, 249

fragmented
, 262

loss
, 251, 252, 263

production
, 263

sharing
, 249, 250, 258

spillovers
, 250

tacit
, 250, 253–254, 276

transfer
, 260, 312, 319, 321, 322, 326, 327

transfer, reverse
, 293–306

Kuwait Oil Corporation
, 68

Kuwait Petroleum Corporation
, 56

Labor costs, rising
, 135

Labor force deterioration
, 128

Lead firm
, 239n3

Learning-by-failing
, 197

LG
, 124

Liquefied natural gas (LNG)
, 59, 65

Location decisions
, 3–25

in multinational enterprises
, 5–8

LUKOIL
, 59

“Made in America” strategy
, 246

M&A
, 68

Magnabosco, Massimo
, 8

Managers

bounded rationality
, 32

Manufacturers’ Organisation (United Kingdom)
, 150

Manufacturing and product design, linking
, 135–136

Manufacturing outsourcing, performance consequences of
, 217–240

control variables
, 236–237

dimensions of performance
, 221

empirical evidence of
, 220

estimation methodology
, 233–235

measurement of outsourcing
, 232–233

measurement of performance
, 233

moderating effects
, 237

motives for outsourcing
, 231–232

outsourcing–performance relationship, functional form of
, 235–236

time lags
, 236

unit of analysis
, 231

See also Outsourcing

Manufacturing systems
, 269–288

industrial districts as, internationalization of
, 272–274

value of
, 274–277

Marathon
, 57

Marginal Expansion Benefits (MEB)
, 195

Marginal Expansion Costs (MEC)
, 195

Market imperfections
, 78n3

Market liberalization
, 5

Market power
, 78n3

Market-seeking strategy
, 83

Mckinsey
, 287

mHorizon
, 205

Microsoft
, 36

Milan Stock Exchange
, 9, 10

Mobile virtual network operators (MVNOs)
, 203

Multinational companies (MNCs)
, 190, 198, 207, 294–296, 298–302, 305, 306

Multinational enterprises (MNEs)
, 142, 143, 145, 146, 159, 177–179, 270, 271, 273, 274, 276, 286

ownership and location decisions in
, 5–8

supplier
, 161–162

Multinationality–performance (M-P) relationships
, 190–193, 207–208

Multinationality research
, 189–210

Multinationality theory
, 190

Multinational mobile network operators (MNOs)
, 189–210

choice of companies
, 192–194

Multinational subsidiaries, exporting strategies of
, 93, 95–99

Multi-path theory of diversified international expansion
, 194–198

improved global replication capabilities
, 204–206

improved local adaptation strategies
, 201–204

over-diversified expansion
, 199–201

Mulva, Jim
, 60

MVNO Directory
, 209–210n14

Myopic learning
, 197, 199–200

Nash Bargaining
, 173

National Oil Companies (NOCs)
, 56, 65, 67, 68, 73, 74, 77

National Tooling Fund
, 148

Nearshoring
, 252, 271

Nespresso
, 9, 14, 16, 18

Nestlè
, 9, 14, 18

Networks
, 313, 314, 319, 320, 321, 323, 324, 326–328

New York Mercantile Exchange
, 66, 67

Nike
, 218

Nokia
, 14, 25n4, 35, 203, 209n13, 275

Nokia Solutions and Networks (NSN)
, 203

North American Free Trade Agreement (NAFTA)
, 92, 151, 313

Obama, Barack

“Made in America” strategy
, 246

Obsolescing bargaining model
, 83

Offshoring
, 4–6, 8, 85, 124, 247, 275, 276

decision, impact of
, 127

disadvantages
, 128

hidden costs of
, 147

ideological influences
, 126–127

of manufacturing system
, 271, 272, 274

outsourcing
, 82–83, 85–86, 90, 100, 105

reverse
, 144

unintended consequences of
, 147

unintended costs of
, 127–129

Oil and gas industry
, 55–78

breaking up global value chain
, 67–69

counter profit cycles
, 71–73

cyclicality
, 71–73

diversification
, 74–77

value chain
, 63–69

vertical integration in
, 66–67, 69–71

Onshoring
, 144, 275

OPEC (Organization of Petroleum Exporting Countries)
, 65, 67

Ophir Energy
, 64, 68

Ordinary least square (OLS) regression
, 234

Organisation for Economic Co-operation and Development (OECD)
, 125, 148

Organizational adaptability
, 246

Outsourcing
, 4–6, 62, 85, 90, 92, 95, 100, 105, 275, 277

abstention
, 239n8

back-shoring for
, 144

intensity
, 232

manufacturing outsourcing, performance consequences of
, 217–240

motives for
, 219–220

offshore
, 82–83, 85–86, 90, 105

propensity
, 232

strategic
, 219

substitution
, 239n8

Over-diversified expansion, of mobile network operators
, 199–201

Overshoring
, 129–133

decision architecture
, 132

defined
, 129

Ownership
, 3–25

in multinational enterprises
, 5–8

P&G
, 9

Payment scheme

with penalty for reneging
, 184

with proportional penalty
, 185–186

with shocks
, 186–188

Peri-central reverse offshoring
, 144

PetroChina
, 68, 74

Petrofina
, 68

Petroleum Action Plan (New Zealand)
, 246

Philips
, 9

Phillips
, 66, 59, 60

Political bargaining model
, 83

Portfolio approach
, 24

Positioning manufacturing
, 132, 135

Pre-shipment inspection quality control systems
, 11

Price
, 161

PriceWaterhouseCoopers (PWC)
, 145, 146

Process digitization
, 6, 23

Product design and manufacturing, linking
, 135–136

Production knowledge
, 263

Productivity performance
, 294, 295, 298, 301

Product life cycle (PLC)
, 152

Product-market decisions
, 32

Product modularization
, 6, 23

Profits
, 32

Property Rights
, 164, 168, 180n4

Proportional penalty, alternative payment scheme with
, 185–186

Public–private partnerships
, 88

Quiktrip
, 68

Racetrac
, 68

Raha, Subir
, 56

Regional Trading Blocks
, 151

Reintegration
, 7

Relational contracting
, 157–181, 184–188

alternative payment scheme with proportional penalty
, 185–186

alternative payment scheme with shocks
, 186–188

contract enforcement
, 160–161, 163–165, 179n2, 180n7, 184–185, 188

equilibrium multi-country sourcing analysis
, 173–176

exogenous demand shocks
, 172–173

MNE supplier
, 161–162

partnership countries
, 162, 165

price
, 161

relationship duration
, 161, 165

reneging, alternative payment scheme with penalty for
, 184

Relationship duration
, 161, 165

Relocation
, 7

Reneging, alternative payment scheme with penalty for
, 184

Research agenda
, 150–152

Research and development (R&D)
, 125, 130, 133, 135, 145, 147, 246, 248, 249, 274, 276

foreign investment
, 293–306

Reshoring
, 133–135, 142–144, 148, 252, 271

Re-shoring Initiative
, 148, 150

Re-shoring Institute
, 150

Resource allocation
, 61

Resource-based view (RBV)
, 62, 69, 71, 73, 75, 88, 248

Resource Dependency Theory
, 134

Reverse knowledge transfer (RKT)
, 294, 295, 300

Reverse offshoring
, 144

peri-central
, 144

Risk taking
, 32

Robotics
, 287

Rockefeller, John D.
, 56, 69

Roland Berger
, 287

Romania

De’Longhi’s ownership and location decisions
, 14–15

Rosneft
, 68, 74

Royal Dutch Shell
, 56, 64, 74

Samsung
, 124

S&P
, 500, 60

Sasol
, 74

Saudi Aramco
, 56, 68, 74

SEB Group
, 9

Seismic mapping
, 63

Selloff
, 90

Sellout
, 90

Sense of discovery
, 32

Serafin, Nicola
, 8

Shocks, alternative payment scheme with
, 186–188

Siemens
, 9, 145

SIM cards
, 203

Skype
, 36

Small and medium enterprises (SMEs)
, 145, 150, 271–273, 311–329

Small domestic appliances (SDAs)
, 5, 9, 10, 24, 25n6

Smile framework
, 274

Softbank
, 200

Spillovers
, 293–306

Standard Oil
, 66, 69

StartupLab
, 46

State-centered strategies
, 83

Stock-keeping unit (SKU)
, 18, 20, 21

Strategic business units (SBUs)
, 61

Strategic outsourcing
, 219

Structural equation modelling
, 220, 232

Substitution outsourcing
, 239n8

Supermajors
, 56, 68

Supplier-driven chains
, 82

Supply chain
, 125, 135, 136

Supply strategies
, 123

Tacit knowledge
, 250, 253–254, 276

Takeover
, 90

Tapad
, 48

Technology-based logistics transformation
, 126

Telenor
, 191, 192, 204, 209n6, 209n8

business model, initial building blocks of
, 45–46

current business model
, 36–38

digital transformation
, 29–50

future value capture
, 43

future value creation
, 43–44

future value proposition
, 42–43

“Global Coordination” network
, 206

Group Industrial Development
, 206, 207

improved global replication capabilities
, 205–206

informants
, 53

organization to support future business model, developing
, 47–48

overview of
, 34–35

Village Phone Program of Grameenphone
, 209n11

ways to support future business model, developing
, 44, 46–47

Terminated contracts
, 166, 168

Texaco
, 68

3D imaging
, 63

3D printing
, 287

3G
, 35–38, 203

Three-stage theory of international expansion
, 191

Tillerson, Rex
, 72

Tosco
, 68

Total
, 56

Transactional misalignment
, 232

Transaction Cost Economics (TCE)
, 178, 181n18

Transaction costs
, 62, 128, 248–249

Transaction cost theory
, 4, 5, 247–248

of multinational firms
, 191, 209n4

TransCanada
, 64

Transfer pricing
, 61

“Transformational partnership” model
, 204

Transnational theory of the firm
, 191

Transneft
, 64

Transportation
, 6, 64

Trump, Donald
, 151

Tullow Energy
, 64

Tullow Oil
, 68

Turkish subsidiaries’ exporting strategies

global financial crisis, impact of
, 81–106, 109–119

multinational subsidiaries, exporting strategies of
, 93, 95, 99

panel data estimator, choosing
, 92–93, 118–119

revolving doors panel, limitations and challenges of
, 100, 102–104

top-down revolving doors unbalanced panel
, 91

2G
, 35–38

Uber
, 30, 39

Uninor
, 210n16

“transformational partnership” model
, 204

Unintended costs of offshoring
, 127–129

Valero
, 68

Value capture
, 32, 33, 37, 43, 45

Value chain
, 30, 55–78, 192–194, 198, 200–203, 207, 208

configuration, of De’Longhi
, 15–21

defined
, 239n1

disaggregation of
, 4

global
, 5, 6, 21, 22, 24, 67–69, 125–126, 158, 218, 246, 312, 319, 322–324, 327, 328, 329n1, 329n3, 329n4

between local and global, manufacturing
, 269–288

oil and gas industry
, 63–69

Value creation
, 7–8, 32, 33, 36–38, 43–46, 219, 246, 271

Value proposition
, 32, 37, 42–43, 45

Vertical architecture
, 61

Vertical integration
, 55–57, 60–63, 219, 232, 235, 237, 239

in oil and gas industry
, 66–67, 69–71

parenting perspective of
, 74

Village Phone Program of Grameenphone
, 209n11

Vodafone
, 191, 192, 200–201, 203, 209n5

“One Vodafone” initiative
, 209n9

Vodafone Partner Agreement
, 202

Walmart

“Made in the USA” campaign
, 128, 148

Western Refining
, 68

West Texas Intermediate (WTI)
, 65

Wholly foreign owned subsidiaries
, 88, 117

Wipro
, 202, 204, 208

Within-industry diversification
, 75

X-Ships
, 255–261

Yunus, Muhammad
, 209n11