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Article
Publication date: 3 July 2017

Amira Khattak, Nigel Haworth, Christina Stringer and Maureen Benson-Rea

This paper aims to examine the relationship between economic upgrading (implementing higher value-added activities) and social upgrading (improvements in workers’ rights and

1034

Abstract

Purpose

This paper aims to examine the relationship between economic upgrading (implementing higher value-added activities) and social upgrading (improvements in workers’ rights and employment) of supplier firms in global value chains (GVCs) governed by multinational enterprises (MNEs). This paper answers Buckley and Ghauri’s (2004) and Buckley and Strange (2015) calls to incorporate other theoretical approaches within the international business (IB) literature. Furthermore, the paper also responds to Lee and Gereffi (2015) argument, published in Critical perspectives on international business, of the need to incorporate the social impact of upgrading in the IB literature.

Design/methodology/approach

Semi-structured interviews were undertaken with representatives from five supplier firms each in Bangladesh and Sri Lanka, as well as with industry representatives.

Findings

Governance patterns within GVCs can create the conditions for economic upgrading leading to social upgrading achievements. Institutional factors also affect the conditions for social upgrading. Although moving to higher value-added activities is critical for supplier firms, this does not necessarily lead to social upgrading. This paper’s research findings suggest that the combination of economic and social upgrading is positively associated with suppliers manufacturing high value-added products and operating in relational networks. In contrast, economic upgrading, by itself, was limited to those firms manufacturing low value-added products, typically those in captive networks.

Originality value

This research is among an emerging body of literature seeking to integrate the GVC literature with the IB field. Importantly, it also contributes to the GVC literature by providing insight into an under-theorized aspect – the relationship between social and economic upgrading.

Article
Publication date: 1 April 2003

Georgios I. Zekos

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…

88430

Abstract

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

Details

Managerial Law, vol. 45 no. 1/2
Type: Research Article
ISSN: 0309-0558

Keywords

Article
Publication date: 14 July 2022

Bin Xi and Pengyue Zhai

The purpose of this study is to explore the impact of environmental pollution and industrial structure upgrading on environmental pollution in different stages based on the…

Abstract

Purpose

The purpose of this study is to explore the impact of environmental pollution and industrial structure upgrading on environmental pollution in different stages based on the temporal and spatial heterogeneity of economic development level and industrial structure upgrading level in eastern, central and western regions of China and discuss whether there is adjustment effect and threshold effect in the process of economic growth affecting environmental pollution, and finally realizes sustainable economic development.

Design/methodology/approach

Based on panel data from 30 provincial-level administrative regions of China (excluding Tibet and Hong Kong, Macao and Taiwan) from 2000 to 2019, this paper uses the environmental Kuznets curve, regulating effect model and panel threshold model to analyze the impact of economic growth and industrial structure upgrading on environmental pollution.

Findings

The results present that the uneven distribution of natural resources leads to different levels of economic development and industrial structure upgrading in eastern and western regions, and its impact on environmental pollution is also different. Economic growth and industrial structure upgrading have a positive effect on environmental pollution, and the relationship between economic growth and environmental pollution is inverted U-shaped. At present, the eastern, central and western regions of China are at the right end of the inverted U-shaped relationship. In general, industrial structure upgrading in eastern, central and western regions has a significant inhibitory effect on environmental pollution. Industrial structure upgrading has a negative moderating effect on the relationship between economic growth and environmental pollution, and the regulating effect is most significant in the central region, followed by the eastern region, and not significant in the western region. The results of panel threshold model show that the industrial structure upgrading can slow down the positive impact of economic growth on environmental pollution and strengthen the negative moderating effect of industrial structure upgrading on economic growth and environmental pollution.

Originality/value

The innovation of this study is to bring economic growth, industrial structure upgrading and environmental pollution into a unified analytical framework, analyze the impact of economic development and industrial structure upgrading levels in different periods on environmental pollution, and select industrial structure upgrading as the moderating variable and threshold variable. It provides a thought for the influence mechanism of different levels of industrial structure upgrading on economic growth and environmental pollution. Based on the panel data in China, this study emphasizes the concept of sustainable development, adheres to green development and proposes relevant policies to improve environmental pollution. And this paper proposes relevant policies to improve environmental pollution from the perspective of transforming economic growth mode and optimizing industrial structure in China, which also has reference significance for developing countries to realize sustainable economic development.

Article
Publication date: 6 July 2015

Joonkoo Lee and Gary Gereffi

The purpose of this paper is to introduce the global value chain (GVC) approach to understand the relationship between multinational enterprises (MNEs) and the changing patterns…

5312

Abstract

Purpose

The purpose of this paper is to introduce the global value chain (GVC) approach to understand the relationship between multinational enterprises (MNEs) and the changing patterns of global trade, investment and production, and its impact on economic and social upgrading. It aims to illuminate how GVCs can advance our understanding about MNEs and rising power (RP) firms and their impact on economic and social upgrading in fragmented and dispersed global production systems.

Design/methodology/approach

The paper reviews the GVC literature focusing on two conceptual elements of the GVC approach, governance and upgrading, and highlights three key recent developments in GVCs: concentration, regionalization and synergistic governance.

Findings

The paper underscores the complicated role of GVCs in shaping economic and social upgrading for emerging economies, RP firms and developing country firms in general. Rising geographic and organizational concentration in GVCs leads to the uneven distribution of upgrading opportunities in favor of RP firms, and yet economic upgrading may be elusive even for the most established suppliers because of power asymmetry with global buyers. Shifting end markets and the regionalization of value chains can benefit RP firms by presenting alternative markets for upgrading. Yet, without further upgrading, such benefits may be achieved at the expense of social downgrading. Finally, the ineffectiveness of private standards to achieve social upgrading has led to calls for synergistic governance through the cooperation of private, public and social actors, both global and local.

Originality/value

The paper illuminates how the GVC approach and its key concepts can contribute to the critical international business and RP firms literature by examining the latest dynamics in GVCs and their impacts on economic and social development in developing countries.

Details

critical perspectives on international business, vol. 11 no. 3/4
Type: Research Article
ISSN: 1742-2043

Keywords

Open Access
Article
Publication date: 19 March 2024

Hamisi Kileo Sama

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…

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.

Details

Modern Supply Chain Research and Applications, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2631-3871

Keywords

Article
Publication date: 1 May 1983

In the last four years, since Volume I of this Bibliography first appeared, there has been an explosion of literature in all the main functional areas of business. This wealth of…

16284

Abstract

In the last four years, since Volume I of this Bibliography first appeared, there has been an explosion of literature in all the main functional areas of business. This wealth of material poses problems for the researcher in management studies — and, of course, for the librarian: uncovering what has been written in any one area is not an easy task. This volume aims to help the librarian and the researcher overcome some of the immediate problems of identification of material. It is an annotated bibliography of management, drawing on the wide variety of literature produced by MCB University Press. Over the last four years, MCB University Press has produced an extensive range of books and serial publications covering most of the established and many of the developing areas of management. This volume, in conjunction with Volume I, provides a guide to all the material published so far.

Details

Management Decision, vol. 21 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

Content available
Book part
Publication date: 30 July 2018

Abstract

Details

Marketing Management in Turkey
Type: Book
ISBN: 978-1-78714-558-0

Article
Publication date: 12 December 2018

Mohammad Tarikul Islam and Christina Stringer

Despite substantial economic upgrading, Bangladesh’s apparel industry remains confronted by claims of precarious working conditions. This paper aims to understand the challenges…

Abstract

Purpose

Despite substantial economic upgrading, Bangladesh’s apparel industry remains confronted by claims of precarious working conditions. This paper aims to understand the challenges of achieving social upgrading and whether benefits of economic upgrading can transfer to workers and their dependents through social upgrading.

Design/methodology/approach

Semi-structured interviews were undertaken with 90 participants from six apparel firms in Bangladesh. The interviews were conducted following the Rana Plaza disaster.

Findings

The results suggest that social upgrading has not occurred to the same extent as economic upgrading. Social upgrading has been compromised in part, by the tiered factory system operating and a lack of governance within the lower tier firms.

Research limitations/implications

Single country and one industry constitute the main limitations of this research. Future research could include multiple countries and industries to allow for greater generalization of findings.

Originality/value

The paper provides new insights on how social upgrading might be compromised within the global value chains context and its impact on developing country supplier firms, workers and their families.

Details

Society and Business Review, vol. 15 no. 2
Type: Research Article
ISSN: 1746-5680

Keywords

Article
Publication date: 7 October 2021

Dung Phuong Hoang, Ngoc Thang Doan and Thi Cam Thuy Nguyen

Upgrading in global value chains (GVCs) has become a crucial strategy for enhancing competitive advantage and attaining higher profitability, especially among firms in developing…

Abstract

Purpose

Upgrading in global value chains (GVCs) has become a crucial strategy for enhancing competitive advantage and attaining higher profitability, especially among firms in developing countries. Drawn from the sociological approach, this study treats GVC upgrading as an entrepreneurial act and examines factors affecting firms' intention to move up in their chains based on the theory of planned behavior. The authors also further test the moderating effects of firms' knowledge about rule of origin and governmental supports on the intention-behavior gap.

Design/methodology/approach

In-depth interviews with eight Vietnamese business managers were implemented to support the development of hypotheses and measurement scales. Afterwards, the authors conducted a survey on decision-makers of 402 Vietnamese firms which currently have export-import activities to collect quantitative data for testing the hypothesized relationships.

Findings

The empirical results indicate that both attitudes, behavioral control and social norms have significant positive impacts on the intention to upgrade in GVCs. In turn, such intention could further activate actual behaviors to move up in their chains. However, those who have better knowledge about rule of origin and receive governmental supports either in terms of finance, credit or technology have a higher probability of demonstrating actual behavior to upgrade in GVCs once their intentions are formed than those who do not.

Practical implications

This research provides valuable implications for policymakers in accelerating firms' actions to upgrade within their chains, hence, actively enhancing not only organizational performance but also significantly contributes to the national economic development.

Originality/value

While most of the previous studies examine the preconditions for firms to participate and upgrade in their GVCs, there is limited attention on determinants of firms' own intention and actual behavior to upgrade in their chains once they have participated in the GVC. Specifically, this research not only contributes to the existing knowledge regarding factors affecting firms' intention to upgrade in their chains but also closes the gap between the intention and the actual GVC upgrading behavior.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 34 no. 7
Type: Research Article
ISSN: 1355-5855

Keywords

Book part
Publication date: 28 September 2015

Md Shah Azam

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and

Abstract

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

Details

E-Services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-325-9

Keywords

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