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1 – 10 of 45In developing countries like Tanzania, gems and jewellery industry mainly consists of disintegrated and unstable micro and small workshops which operate in a way that misalign…
Abstract
Purpose
In developing countries like Tanzania, gems and jewellery industry mainly consists of disintegrated and unstable micro and small workshops which operate in a way that misalign value addition processes. This study is aimed to bridge gap by focussing on exploitation of industrial clusters in social normalisation and economic resilience to developing countries. The world economic shocks has been not only individually experienced but also globally shared while disrupted lives across all countries and communities and negatively affected global socio-economic growth.
Design/methodology/approach
Furthermore, the explorative design was adopted in this study in order to explore needs of respondents, and with the aim to direct the study towards a descriptive design. The sample frame consists of participants in gems and jewellery activities in Tanzania whereby sample was drawn from Dar es Salaam and Arusha. Semi-structured interview was used to collect quantitative data to establish evidence of Tanzanians’ SSJs linked to global value chains (GVCs).
Findings
Results revealed the benefits of exploitation of artisanal industrial clusters to Tanzanians’ SSJs when linked to global value chains (GVCs). Findings of the study demonstrate the importance of artisanal industrial clusters in facilitating Tanzanians’ SSJs to access GVCs. Further, insufficient education, trust and social protection directly affects inclusive GVCs, inferring that the impact of artisanal industrial clusters on inclusive GVCs in social normalisation and economic resilience.
Research limitations/implications
Study findings reveals shortcomings in existing regulatory framework of linking Tanzanians’ SSJs to artisanal industrial clusters, for improvements to better support the inclusiveness in GVCs. Findings of this research invite interventions on institutional capabilities and entrepreneurial competencies to enhance the capabilities of small-scale jewellers (SSJs). Like other studies, this study involved cross-sectional data, limit targeted study population as representative of SSJs in industrial clusters and GVCs in economic crises at limited time.
Practical implications
The study findings makes important practical contributions to the Tanzania’s SSJs by examining mediating role of artisanal industrial clusters hence informing policymakers of mining sector how to improve accessibility on GVCs by focus on offering great institutional capabilities and entrepreneurial competencies. These findings will help SSJs and policy makers to get better understanding of the relationships in exploitation of artisanal industrial clusters when accessing GVCs. Therefore, they can make better decisions on implementing artisanal industrial clusters as well as management accessing GVCs, so that SSJs will attain the best possible performance.
Social implications
This emphasises the importance of community empowerment in the GVCs process through artisanal industrial clusters. Study findings indicate the influence of industrial relations to social dynamics which are previously inadequately addressed and scantly researched. In actual fact study propose initiatives that ensure local communities benefit socially from the integration of SSJs into GVCs through artisanal industrial clusters. Findings suggest local communities that take into account inter-sectionality of artisanal industrial clusters and inclusive GVCs, by considering how factors like education, trust and social protection status intersect to influence the social inclusiveness of SSJs.
Originality/value
There is limited evidence of linking Tanzanians’ SSJs to GVCs in social normalisation and economic resilience and few researchers have explored this topic. This article leverages exploitation of industrial clusters in normalisation and economic resilience to developing countries such as Tanzania as way of improving shared prosperity, sustainability, inclusive growth, cohesion, value chain upgrading and financial inclusion to SSJs.
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Rahul Sindhwani, Abhishek Behl, Vijay Pereira, Yama Temouri and Sushmit Bagchi
The COVID-19 pandemic has showcased the lack of resilience found in the global value chains (GVCs) of multinational enterprises (MNEs). Existing evidence shows that MNEs have only…
Abstract
Purpose
The COVID-19 pandemic has showcased the lack of resilience found in the global value chains (GVCs) of multinational enterprises (MNEs). Existing evidence shows that MNEs have only recently and slowly started recovering and attempting to rebuild the resilience of their GVCs. This paper analyzes the challenges/inhibitors faced by MNEs in building their resilience through their GVCs.
Design/methodology/approach
A four-stage hybrid model was used to identify the interrelationship among the identified inhibitors and to distinguish the most critical ones by ranking them. In the first stage, we employed a modified total interpretive structural modeling (m-TISM) approach to determine the inter-relationship among the inhibitors. Additionally, we identified the inhibitors' driving power and dependency by performing a matrix multiplication applied to classification (MICMAC) analysis. In the second stage, we employed the Pythagorean fuzzy analytic hierarchy process (PF-AHP) method to determine the weight of the criteria. The next stage followed, in which we used the Pythagorean fuzzy combined compromise solution (PF-CoCoSo) method to rank the inhibitors. Finally, we performed a sensitivity analysis to determine the robustness of the framework we had built based on the criteria and inhibitors.
Findings
We find business sustainability to have the highest importance and managerial governance as the most critical inhibitor hindering the path to resilience. Based on these insights, we derive four research propositions aimed at strengthening the resilience of such GVCs, followed by their implications for theory and practice.
Originality/value
Our findings contribute to the extant literature by uncovering key inhibitors that act as barriers to MNEs. We link out our findings with a number of propositions that we derive, which may be considered for implementation by MNEs and could help them endow their GVCs with resilience.
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Paweł Pasierbiak and Sebastian Bobowski
The last three decades have witnessed strong development of global value chains (GVCs). Also, the Polish economy developed international production links along with the systemic…
Abstract
Research Background
The last three decades have witnessed strong development of global value chains (GVCs). Also, the Polish economy developed international production links along with the systemic transformation from the beginning of the 1990s. This led to changes in Poland's participation in GVCs.
The Purpose of the Chapter: The study's primary purpose is to characterise the evolution of Poland's participation in GVCs since the mid-1990s, including its key determinants.
Methodology
Several research methods were used to achieve the study's goal, including critical literature analysis, statistical data analysis and descriptive methods. To determine Poland's share in the GVCs, the method of estimating domestic and foreign added value was used, which allowed for measuring the scale of production fragmentation and related trade in value-added.
Findings
The analysis allowed us to conclude that Poland has increased its share in GVCs, mainly inside the EU. Also, the industrial structure underwent positive changes. The increasing Poland's participation in the GVCs was primarily due to the inflow of FDI-related technology, the transformation of the economic structure, institutional and geographical factors. The improvement in the conditions for the functioning of the Polish economy has been reflected in international competitiveness rankings, where such attributes as geographical location, macroeconomic performance, human capital, market size, technical infrastructure and innovativeness are indicated. On the other hand, however, the tightness of the law, the efficiency of the government and public administration remains a challenge.
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Amrita Saha, Filippo Bontadini and Alistair Cowan
The purpose of this paper is to provide an early assessment of India’s South-South cooperation for trade and technology (SSTT) with East Africa, focusing on Ethiopia, Rwanda…
Abstract
Purpose
The purpose of this paper is to provide an early assessment of India’s South-South cooperation for trade and technology (SSTT) with East Africa, focusing on Ethiopia, Rwanda, Kenya, Uganda and Tanzania. It aims to analyse the role of SSTT in providing support to targeted sectors.
Design/methodology/approach
The paper examines SSTT, focusing on India and East Africa over a specific period (2000–2016) of its emergence, and extends the public sponsorship literature in international business (IB) to better understand the relationship between SSTT and value addition – applying to a particular case study of SSTT interventions in spices.
Findings
The paper highlights SSTT as a pathway to support value addition in global value chains (GVCs). Trade between India and East African countries has grown, with three developments over the period of analysis in particular: shifting trade patterns, growing share of intermediate goods trade and differences in GVC insertion. However, East African exports are largely of lower value. Capacity building to support processing capability and thriving markets can encourage greater value addition. Preliminary findings suggest early gains at the margins, as SSTT interventions have been focusing on capacity boosting with buffering and bridging mechanisms for increased volume of trade. Moving up the value chain however requires that specific value-enhancing activities continue to be targeted, building on regional capacities. Our high-level case study for spices suggests that activities are starting to have a positive effect; however, more focus is needed to specifically target value creation before export and in particular higher levels of processing.
Practical implications
While findings are preliminary, policy implications emerge to guide SSTT interventions. There is capacity for building higher value-added supply chains as is evident among East African countries that trade with each other – future SSTT programmes could tap into this and help build capacity in these higher-value value chains. Future SSTT programmes can take a comprehensive approach by aiming at interventions at key points of the value chain, and especially at points that facilitate higher value addition than initial processing. An example is that Ethiopia and Rwanda are likely to benefit from an expanded spice industry, but the next phase should be towards building processing for value-addition components of the value chain, such as through trade policies, incentivising exporters to add value to items before export. From a development perspective, more analysis needs to be done on the value chain itself – for instance, trade facilitation measures to help processers engage in value chains and to access investments for increasing value add activities. (iv), Future research should examine more closely the development impacts of SSTT, namely, the connection between increased trade, local job creation and sustained innovation, as it is these tangible benefits that will help countries in the Global South realise the benefits of increased trade.
Originality/value
The paper underlines how the SSTT approach can contribute to the critical IB and GVCs literature using a theoretical grounded approach from public sponsorship theory, and with a unique lens of development cooperation between countries in the global south and its emerging impact on development outcomes in these countries.
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Jonathan Mukiza Kansheba, Clavis Nwehfor Fubah and Mutaju Isaack Marobhe
Despite the popularity of the entrepreneurial ecosystem (EE) concept, research on its value-adding activities receives less attention. Thus, in this article, the authors…
Abstract
Purpose
Despite the popularity of the entrepreneurial ecosystem (EE) concept, research on its value-adding activities receives less attention. Thus, in this article, the authors investigate the role of EEs in supporting global value chain (GVC) activities.
Design/methodology/approach
The authors employ the fuzzy-set qualitative comparative analysis (fsQCA) technique to identify practical configurations of EE’s framework and systemic conditions spurring GVC activities in 80 countries.
Findings
The findings suggest different configurations of EE`s framework and systemic conditions necessary for various GVC activities regarding input-output structure, geographical scope, upgrading, and forward and backward participation.
Originality/value
This study contributes to the extant literature by pioneering the EE approach to explaining GVC development. Moreover, the findings provide novel insights for understanding the EE – GVC interplay. As a result, the study offers a more nuanced understanding of how the EE supports GVC activities.
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Pedro Mota Veiga, Sandra Marnoto, Marta Guerra-Mota and Gadaf Rexhepi
The research aims to explore the relationships between the digital capabilities of micro, small and medium enterprises (MSMEs), their participation in global value chains and…
Abstract
Purpose
The research aims to explore the relationships between the digital capabilities of micro, small and medium enterprises (MSMEs), their participation in global value chains and their adoption of innovative business models. Additionally, the study investigates how the prior experiences of entrepreneurial failure may influence or moderate these relationships.
Design/methodology/approach
To address these research objectives, the study draws upon data obtained from the Flash Eurobarometer 486 survey, a comprehensive dataset that explores the challenges faced by 13,197 European MSMEs as they navigate the complexities of growth, the integration of sustainable business models and the incorporation of digital technologies. To test the proposed hypotheses, the research employs multivariate logistic regression analysis.
Findings
Digital capabilities are found to be positively associated with business model innovation, while integration into global value chains is linked to a higher likelihood of implementing new business models. Interestingly, entrepreneurial failure did not significantly influence the relationship between digital capabilities and the adoption of new business models. In contrast, entrepreneurial failure significantly moderated the impact of global value chain inclusion on business model innovation, particularly in MSMEs with a history of failure.
Originality/value
This article provides practical guidance to entrepreneurs and companies interested in enhancing their digital strategies and engagement in global value chains, considering the entrepreneurs' business histories.
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Lipeng Pan, Yongqing Li, Xiao Fu and Chyi Lin Lee
This paper aims to explore the pathways of carbon transfer in 200 US corporations along with the motivations that drive such transfers. The particular focus is on each firm’s…
Abstract
Purpose
This paper aims to explore the pathways of carbon transfer in 200 US corporations along with the motivations that drive such transfers. The particular focus is on each firm’s embeddedness in the global value chain (GVC) and the influence of environmental law, operational costs and corporate social responsibility (CSR). The insights gleaned bridge a gap in the literature surrounding GVCs and corporate carbon transfer.
Design/methodology/approach
The methodology comprised a two-step research approach. First, the authors used a two-sided fixed regression to analyse the relationship between each firm’s embeddedness in the GVC and its carbon transfers. The sample consisted of 217 US firms. Next, the authors examined the influence of environmental law, operational costs and CSR on carbon transfers using a quantitative comparison analysis. These results were interpreted through the theoretical frameworks of the GVC and legitimacy theory.
Findings
The empirical results indicate positive relationships between carbon transfers and GVC embeddedness in terms of both a firm’s position and its degree. From the quantitative comparison, the authors find that the pressure of environmental law and operational costs motivate these transfers through the value chain. Furthermore, CSR does not help to mitigate transfers.
Practical implications
The findings offer insights for policymakers, industry and academia to understand that, with globalised production and greater value creation, transferring carbon to different parts of the GVC – largely to developing countries – will only become more common. The underdeveloped nature of environmental technology in these countries means that global emissions will likely rise instead of fall, further exacerbating global warming. Transferring carbon is not conducive to a sustainable global economy. Hence, firms should be closely regulated and given economic incentives to reduce emissions, not simply shunt them off to the developing world.
Social implications
Carbon transfer is a major obstacle to effectively reducing carbon emissions. The responsibilities of carbon transfer via GVCs are difficult to define despite firms being a major consideration in such transfers. Understanding how and why corporations engage in carbon transfers can facilitate global cooperation among communities. This knowledge could pave the way to establishing a global carbon transfer monitoring network aimed at preventing corporate carbon transfer and, instead, encouraging emissions reduction.
Originality/value
This study extends the literature by investigating carbon transfers and the GVC at the firm level. The authors used two-step research approach including panel data and quantitative comparison analysis to address this important question. The authors are the primary study to explore the motivation and pathways by which firms transfer carbon through the GVC.
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In this paper, we evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This…
Abstract
Purpose
In this paper, we evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This is a meaningful attempt to use the GTAP-VA model to analyze the electronics industry in China.
Design/methodology/approach
We employ a Dynamic GTAP-VA Model to quantitatively evaluate the economic repercussions of the “Chip Act” on the Chinese electronic industries' GVC participation from 2023 to 2040.
Findings
The findings depict a discernible contraction in China’s electronic sector by 2040, marked by a −2.95% change in output, a −3.50% alteration in exports and a 0.45% increment in imports. Concurrently, the U.S., EU and certain Asian economies exhibit expansions within the electronic sector, indicating a GVC realignment. The “Chip Act” implementation precipitates a significant divergence in GVC participation across different countries and industries, notably impacting the electronics sector.
Research limitations/implications
Through a meticulous temporal analysis, this manuscript unveils the nuanced economic shifts within the GVC, substantially bridging the empirical void in existing literature. This narrative accentuates the profound implications of policy regulations on global trade dynamics, contributing to the discourse on international economic policy and industry evolution.
Practical implications
We evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This is a meaningful attempt to use the GTAP-VA model to analyze the electronics industry in China.
Social implications
The interaction between policy regulations and global value chain (GVC) dynamics is pivotal in understanding the contemporary global trade framework, especially within technology-driven sectors. The US “Chips Act” represents a significant regulatory milestone with potential ramifications on the Chinese electronic industries' engagement in the GVC.
Originality/value
The significance of this paper is that it quantifies for the first time the impact of the US Chip Act on the GVC participation index of East Asian countries in the context of US-China decoupling. With careful consideration of strategic aspects, this paper substantially fills the empirical gap in the existing literature by presenting subtle economic changes within GVCs, highlighting the profound implications of policy regulation on global trade dynamics.
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Miguel Dindial and Hinrich Voss
This paper engages with the important work of Raškovic (2023). The authors agree with Raškovic’s (2023) argument that international business (IB) policy is well positioned to…
Abstract
Purpose
This paper engages with the important work of Raškovic (2023). The authors agree with Raškovic’s (2023) argument that international business (IB) policy is well positioned to inform and address many of society’s wicked problems, including modern slavery. Beyond supporting this position, the purpose of this paper is to highlight IB’s internal and ongoing debate regarding multinational ownership and control, and how this unresolved theoretical issue can hinder the contribution of IB policy in addressing wicked problems.
Design/methodology/approach
By leveraging prior literature, this paper synthesises opposing views on the extent of control that multinational enterprises (MNEs) exert across global value chains (GVCs). The authors then demonstrate why these conflicting perspectives should be resolved to fully realise the task that Raškovic (2023) has laid out for IB policy.
Findings
This study argues that IB is steeped in a tradition where ownership has been a proxy for meaningful control. Rising GVCs have complicated this relationship, and while IB recognises this, the field remains short of explicating a set of robust conditions that can detect control in the absence of ownership. Given that responsibility is often based on an assumption of who has control, this ongoing and unresolved debate limits IB’s utility in advancing appropriate policy interventions to tame wicked problems.
Originality/value
This paper makes a contribution by bringing together diverse perspectives on the ongoing debate regarding MNE control in GVC. It demonstrates how this seemingly abstract debate can have significant implications for IB’s role in addressing society’s grand challenges. The authors further suggest that embracing interdisciplinarity and novel analytical tools can assist in demystifying the opaqueness of GVCs and resolving the control “fuzziness” that confuses responsibility boundaries across the GVC.
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This study aims to investigate two issues: (1) a nexus between climate-related financial policies (CRFP) and global value chains (GVC) and (2) the government’s policies to help…
Abstract
Purpose
This study aims to investigate two issues: (1) a nexus between climate-related financial policies (CRFP) and global value chains (GVC) and (2) the government’s policies to help countries enhance the efficient use of CRFP in improving a country’s likelihood to participate in GVC.
Design/methodology/approach
To investigate the connection between GVC and CRFP, the authors incorporate that backward participation is measured using foreign value-added, while domestic value-added is used to measure forward participation, quantified as proportions of gross exports. The study analyses yield significant insights across a span of 20 developing countries and 26 developed countries over the period from 2010 to 2020.
Findings
Regarding the first issue, the authors affirm the presence of a linear link between GVC and CRFP, implying that involvement in CRFP is advantageous for both backward and forward participation. Furthermore, the authors identify long-term GVC and CRFP cointegration and confirm its long-term effects. Notably, the expression of a linear relationship between GVC and CRFP appears to be stronger in developing countries.
Research limitations/implications
The study findings, together with previous research, highlight the importance of financial policies relating to climate change (CRFP) in the context of economic growth. Climate change’s consequences for financial stability and GVC highlight the importance of expanded policymakers and industry participation in tackling environmental concerns.
Practical implications
Regarding the second issue, the study findings suggest critical policy implications for authorities by highlighting the importance of financial stability and expanded policymakers in promoting countries' participation in GVC.
Originality/value
This paper investigates the link between GVC performance and CRFP, offering three significant advances to previous research. Moreover, as a rigorous analytical method, this study adopts a typical error model with panel correction that accounts for cross-sectional dependency and stationarity.
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