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This paper aims at enriching the literature on international business (IB) studies to include insights from Global Value Chain (GVC) analysis to better explain how MNCs can orchestrate a global network organization. A first important contribution of the GVC literature is that it shifts the focus from single firms to their value chains, providing instruments to study how activities are split and organized among different firms at the industry level, and how MNCs can implement different governing mechanisms within a network-based setting. The GVC literature also highlights that retailers (as global buyers) often act as ‘lead firms’ in shaping the trajectories of global industries, while IB studies have so far focused predominantly on manufacturing firms. A fine-grained analysis of alternative forms of governance characterizing value chains can offer additional elements in explaining how MNCs can manage their network relationships in a global scenario. Finally, through their focus on upgrading, GVC studies suggest that knowledge flows and innovation dynamics taking place within value chains are as important as those taking place within the MNC’s organizational border. We conclude by arguing that these insights can help the IB literature to examine the challenges and opportunities MNCs face in engaging with suppliers and to explain the dynamic evolution of orchestrating global activities at the global level.

Under the global value chain (GVC) approach, this paper aims to analyze how domestic suppliers on the periphery of the automotive industry are affected by their relationship with foreign multinationals.

A case study with primary data collected from foreign multinationals operating in the Mexican automotive industry was used to analyze their relationship with domestic suppliers.

The evolution of the suppliers has been characterized by improved quality and added value in their products and more asset-intensive, efficient processes. This evolution has been driven by improvement in production capabilities and investment in new equipment by domestic suppliers and facilitated by knowledge transfer from foreign multinationals. However, it has not involved the acquisition of innovation capabilities or the internationalization of production activities. This has limited their position on the first levels of the value chain and their global presence, which are essential aspects when climbing the industry value chain to lead some activities at a global level. At the same time, most of these suppliers have become strategic and have a greater dependence on foreign multinationals. This poses a dilemma for domestic firms, as the relationship with these multinationals becomes more intense and dependent and at the same time reduces the possibility of leading activities in the value chain.

The paper analyzes the impact on domestic suppliers of their relationships with foreign multinationals, integrating traditional product, process and functional upgrading and new elements, in particular, participation in the GVC and dependence on multinationals.

Integrating smallholders into high‐value global markets represents a unique opportunity to effect large‐scale poverty reduction in the countryside. The purpose of the paper is to add empirical evidence to the discussion of how to best incorporate smallholders into the formal economy sustainably and responsibly.

The paper first builds a theoretical framework around global value chain theory and literature on smallholder inclusion and Kenya's growing horticultural sector. It then moves to explore a Kenyan smallholder‐based business model that incorporates 4,000 flower producers through an efficient and transparent intermediary. The analysis focuses on the importance of governance, upgrading and strong intermediaries for including smallholders in horticultural value chains.

In conclusion, this paper finds that although smallholder inclusion is both favorable and feasible based on theory, literature and case study analysis, it remains limited. It proposes embracing innovative smallholder‐based business models as a viable path out of poverty in countries with low labor costs, suitable climatic conditions and basic infrastructural capacities.

Limitations include a reliance on largely qualitative research methods due to gaps in available data.

Policy implications include the necessity of promoting agricultural development through investments in extension services, the creation of research and development centers and improvements in the rule of law.

This paper is unique in its focus on business models and global value chains as mechanisms through which to include smallholders into the global economy.

This paper aims to analyze how emerging market firms upgrade their capabilities by focusing on “uncommoditizing strategies” that enable them to achieve levels of international competitiveness beyond the comparative advantages of their home countries and serve markets with premium pricing, quality and reputation of products.

In this paper, the authors studied 18 Latin American companies across six countries. Latin America represents an ideal setting because many of these countries have traditionally developed using natural resource endowments, and their firms have tended to rely on these in their internationalization. To facilitate the analysis of each case and the comparisons across cases, the authors used the same analytical framework for the companies, identifying the sources of differentiation and cost efficiency strategies that enabled these firms to upgrade their capabilities and compete on the basis of premium pricing, quality and reputation.

The analysis identified a general framework that represents an abstraction of the actions taken by these companies over time. The proposed model consists of three main elements used to pursue uncommoditizing strategies: tropicalized innovation, global efficiency and coordinated control.

Recent research on emerging market firms has shown interest in how these firms upgrade their capabilities. This paper contributes to this stream of research by providing an overarching framework that not only bridged previous narrower studies but also explained how firms can develop uncommoditizing strategies to upgrade their capabilities. Further, this paper helps managers by providing a comprehensive yet succinct overview of the main strategies that they can use to help their firms to achieve international competitiveness.

This chapter presents the concluding arguments. It explores the implications of the analyses for understanding open spaces in informal settlements in the context of spatial justice by looking at their material configuration and design, the process that led to their establishment, the ways they are used and the rules and regulations affecting their use. This work has found evidence for the continued and structural denigration of informal settlements and their inhabitants, which influence the upgrading initiative. At the same time it has established the ways in which the new open spaces and the processes surrounding their establishment have improved the quality of life for comuna residents. It thus confirms the importance of combing equity, empowerment and recognition as equal goals into understandings of spatial justice, and claims that the different aspects of justice are not interchangeable or hierarchical. This chapter draws on the empirical data presented in the preceding chapters to explore the potentials and limitations of the new generation of upgrading programmes in an abstract way, which makes the results of this study transferable and applicable to other cities.

IBM owners who upgraded to PC‐DOS 4.0 may rightly whimper when confronted with software upgrades—and this time, thanks to System 7, Macintosh owners don't get to nod smugly either. Whether at the system level or in applications, software upgrades can reduce the most expert techie to tears of frustration. At least with hardware, the manufacturers don't send you notices that it's time to change to a new version for a modest additional fee. Software involves more frequent upgrades than hardware, but the choices are no less difficult. The author recounts some personal experiences and offers some guidelines that may or may not do you any good. The author also provides notes from July‐September 1991 PC literature. Other than the drum‐beating for DOS 5.0 (not cited here), it's been a mixed period: some interesting material with few breakthroughs.

The purpose of this paper is to discuss the recently developed multi-physics computational model for the conventional Gas Metal Arc Welding (GMAW) joining process that has been upgraded with respect to its predictive capabilities regarding the spatial distribution of the mechanical properties controlling the ballistic limit (i.e. penetration resistance) of the weld.

The original model consists of five modules, each dedicated to handling a specific aspect of the GMAW process, i.e.: electro-dynamics of the welding-gun; radiation-/convection-controlled heat transfer from the electric arc to the workpiece and mass transfer from the filler-metal consumable electrode to the weld; prediction of the temporal evolution and the spatial distribution of thermal and mechanical fields within the weld region during the GMAW joining process; the resulting temporal evolution and spatial distribution of the material microstructure throughout the weld region; and spatial distribution of the as-welded material mechanical properties. The model is upgraded through the introduction of the sixth module in the present work in recognition of the fact that in thick steel GMAW weldments, the overall ballistic performance of the armor may become controlled by the (often inferior) ballistic limits of its weld (fusion and heat-affected) zones.

The upgraded GMAW process model is next applied to the case of butt-welding of MIL A46100 (a prototypical high-hardness armor-grade martensitic steel) workpieces using filler-metal electrodes made of the same material. The predictions of the upgraded GMAW process model pertaining to the spatial distribution of the material microstructure and ballistic-limit-controlling mechanical properties within the MIL A46100 butt-weld are found to be consistent with general expectations and prior observations.

To the authors’ knowledge, the present work is the first reported attempt to establish, using computational modeling, functional relationships between the GMAW process parameters and the mechanical properties controlling the ballistic limit of the resulting weld.

This paper aims to trace the performance consequences of within-lead firm reconfigurations of global value chains with respect to business performance and upgrading.

The study is based on two detailed company case studies which are analysed in an organizational design approach.

Lead firms systematically separate and internalize high value-added activities in otherwise low value-added processes leading to constant reconfigurations and reorganizations of the production processes in global value chains. The study finds that similar reconfigurations may trigger different changes and changes and performance consequences may differ considerably according to the level of analysis. The two cases help to understand the specific roles of the outsourcing and offshoring decisions in shaping actual global value chain structures.

The consequences of within-lead firm reconfigurations are rarely analysed in the literature.

Reports on the computer‐aided design (CAD) upgrade implementation process at PBR Automotive Pty Ltd, Melbourne, Australia. Views the implementation as successful since many of the desired outcomes have been achieved or surpassed. The key success factors were detailed planning, user involvement and vendor support. These combined to create an atmosphere of excitement in the project and success. Reports on the future plans that include the development of an integrated information system at PBR which will involve customers and suppliers in addition to internal personnel. The CAD system upgrade serves as a launching board for the development of such a system.

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.

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.

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.

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.