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Open Access
Article
Publication date: 7 November 2023

Sarah Franz, Axele Giroud and Inge Ivarsson

This study aims to analyse how multinational corporations (MNCs) organise value chain activities to penetrate new market segments. It contributes by expanding traditional…

Abstract

Purpose

This study aims to analyse how multinational corporations (MNCs) organise value chain activities to penetrate new market segments. It contributes by expanding traditional decisions regarding the vertical fine-slicing of value chain activities (whether performed internally or externally) and the consideration of resource-sharing decisions (integration or separation) for each value chain function.

Design/methodology/approach

The authors draw on primary data collected from two case study firms operating in the large emerging Chinese market: Volvo Construction Equipment AB and Epiroc AB. In-depth cases illustrate how foreign MNCs expand into new market segments and simultaneously target both the lower-priced mid-market and the premium segments in the Chinese mining and construction industry.

Findings

The results reveal that product diversification creates challenges for managers who must oversee new (vertical) value chains, often simultaneously. Beyond geography and modes of governance, managers must decide whether to integrate or separate value chain activities for the new product lines. The study identifies four main strategic choices for firms to address this complexity, focusing on the decision to internalise or externalise (i.e. within or across organisational boundaries) and integrate or separate value chain activities between different product lines.

Originality/value

This study builds upon the internalisation theory and recent international business contributions that focus on value chain configurations to explain MNCs’ product diversification as a growth strategy in a host emerging market. It also sheds light on the choice of conducting new activities in-house or externally and elucidates firms’ managerial decisions to operationally integrate or separate individual value chain activities. The study provides insights into the drivers explaining managerial decisions to configure value chain activities across product lines and contributes to the growing body of literature on MNC activities in emerging economies by highlighting that product diversification impacts entry mode diversity and resource sharing across units.

Article
Publication date: 3 September 2018

Subarna Ferdous and Mitsuru Ikeda

The purpose of this paper is to analyze the value chain activities of shrimp firms in Bangladesh, and mapping the Porter’s (1985) value chain framework to see if it works or not…

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Abstract

Purpose

The purpose of this paper is to analyze the value chain activities of shrimp firms in Bangladesh, and mapping the Porter’s (1985) value chain framework to see if it works or not. The present study identifies the gap, synthesizes and analyzes those gaps which lead the firms to create more values from firms to consumers.

Design/methodology/approach

Interviews were conducted with the shrimp industry managers in the southern region of Bangladesh. Exploratory qualitative research method was used and the questionnaire was semi-structured. Data were gathered from 43 firm managers. After sending multiple phone calls and face to face meeting, the response rate was 35.83 percentages.

Findings

Poor transportation, communication gap between the stakeholders, shortage of raw shrimps and lack of quality standard were the areas where shrimp industries were suffering. It was found that some of the primary and secondary activities of shrimp industries did not map with Porter’s framework. Based on Porter’s framework, the study suggested that analyzing and synthesizing those gaps can lead the firm more value and competitive advantages.

Research limitations/implications

Limitations include a lack of knowledge on value chain and shortages of raw materials for the processing plants. Moreover, the sample size was small for this exploratory study.

Practical implications

Shrimp industries will learn standard value chain activities, and identify the gaps based on the mapping of Porter’s value chain.

Originality/value

Using Porter’s value chain this is the first empirical study in the shrimp firms in Bangladesh. The primary research contribution is the revised theoretical framework which can be used for further research on shrimp industries in Bangladesh.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 8 no. 3
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 28 August 2019

Bokolo Anthony Jnr

This paper aims to investigate the current value chain activities grounded on Porter’s value chain theory and to examine the drivers of strategic environmentalism that influence…

Abstract

Purpose

This paper aims to investigate the current value chain activities grounded on Porter’s value chain theory and to examine the drivers of strategic environmentalism that influence sustainable value chain adoption. This study further constructs a prescriptive model to reveal the extent to which information communication technology (ICT)-based industries are adopting sustainable value chain practices.

Design/methodology/approach

Data were collected using questionnaire from selected ISO 14000/14001-certified ICT-based firms in Malaysia and analyzed using partial least square-structural equation modeling.

Findings

Results reveal that the primary activities positively influence sustainable value chain. Moreover, results indicate that support activities significantly influence sustainable value chain adoption in ICT-based firms. Results further show that strategic environmentalism drivers have an impact on sustainable value chain adoption.

Research limitations/implications

Data were collected from ICT-based industries in Malaysia only. Additionally, this research extends the body of knowledge and offers theoretical implications for ICT-based industries in Malaysia and other emerging economies in adopting sustainable value chain activities.

Practical implications

Practically, this study assists ICT-based industries to change their current paradigm from the traditional operations to a more holistic approach toward supporting practitioners to simultaneously achieve social responsibility, environmental and economic growth.

Social implications

This study offers social implications for ICT-based industries to implement cleaner operations by decreasing CO2 emission, lessening energy usage, diminishing cost incurred and minimizing usage of natural resources, thereby increasing product recovery and recycle-ability of IT hardware.

Originality/value

This study is one of the first to address the issue related to sustainable value chain in ICT-based industry by providing a roadmap on how practitioners can implement sustainable initiatives or more significantly, how to infuse these initiatives in their current chain, while concurrently enhancing competitiveness. Furthermore, this paper examines the current activities implemented by practitioners toward sustainable value chain adoption and explores the correlation of the drivers of strategic environmentalism with regard to sustainable value chain.

Book part
Publication date: 1 January 2008

Graham Hubbard, Angelina Zubac, Lester Johnson and Ron Sanchez

Drawing on concepts from the resource-based view, the dynamic capabilities school, and competence-base theory, this chapter develops a value chain framework for evaluating and…

Abstract

Drawing on concepts from the resource-based view, the dynamic capabilities school, and competence-base theory, this chapter develops a value chain framework for evaluating and managing resources and capabilities. In common with activity-based value chains, our framework is a method for representing and analyzing the firm, and identifying what may be its optimal configuration. However, as opposed to an activity-based value chain, our approach is specifically designed to help clarify interrelationships between a firm's various assets and capabilities. Thus, it may help researchers and managers alike to analyze to what extent a firm's successes may be attributed to a certain set of resources and capabilities and whether there is scope to further develop them to advance the firm's strategies. Our value chain framework can be used singly or in conjunction with an activity value chain framework, depending on the strategic problem being addressed. However, we suggest that our resource and capabilities value chain will be most useful when determining how a firm's business processes should be funded, what resources and capabilities should make them up, or how these decisions could affect the firm's present organizational structure.

Details

A Focused Issue on Fundamental Issues in Competence Theory Development
Type: Book
ISBN: 978-1-84855-210-4

Book part
Publication date: 11 August 2005

Eric Lamarque

There has been a constant evolution over the past two decades in the banking business portfolio, due to economic globalisation, deregulation, and the advent of new technologies…

Abstract

There has been a constant evolution over the past two decades in the banking business portfolio, due to economic globalisation, deregulation, and the advent of new technologies. This trend continues today and is even more marked by the emergence of production businesses which have traditionally been included in the value chain of banking services.

An examination of this phenomenon is made possible by value chain analysis. This concept has been adapted to banking. The notions of organisational competencies and value chain have been linked to detect value-adding activities in the various bank services and identify opportunities for new conditions for value production.

Details

Competence Perspective on Managing Internal Process
Type: Book
ISBN: 978-1-84950-320-4

Book part
Publication date: 13 August 2014

Valentina De Marchi, Eleonora Di Maria and Stefano Ponte

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…

Abstract

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.

Details

Orchestration of the Global Network Organization
Type: Book
ISBN: 978-1-78350-953-9

Keywords

Article
Publication date: 11 December 2019

Ioan-Iustin Vadana, Lasse Torkkeli, Olli Kuivalainen and Sami Saarenketo

Little research has been done on the emergence of companies that engage in increasingly digital entrepreneurship with digitalized value-chain activities. The purpose of this paper…

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Abstract

Purpose

Little research has been done on the emergence of companies that engage in increasingly digital entrepreneurship with digitalized value-chain activities. The purpose of this paper is provide a consistent picture of how value-chain digitalization affects companies’ internationalization and international marketing (IM), and give insights regarding the influence of the degree of value-chain digitalization on the level of internationalization.

Design/methodology/approach

This paper takes an explorative approach based on a literature review and uses a conceptual analysis and research framework to empirically classify digitalized/-ing companies.

Findings

This study finds ways to classify the internationalization of companies according to the degree of digitalization of their value-chain. The more these companies use internet hardware infrastructure and web and mobile software technologies, the better they can leverage their foreign assets, achieving a higher share of foreign sales with relatively limited foreign assets.

Research limitations/implications

The results enrich the literature on internationalization and IM and entrepreneurship to explain companies that are distinctly digitalized across their value-chain activities.

Practical implications

This research provides evidence for companies regarding digitalization of the value-chain to facilitate entrepreneurial opportunities and offer rapid, efficient and affordable internationalization.

Originality/value

This research tackles a novel phenomenon by analyzing companies’ value-chain digitalization in relation to their degree of internationalization and IM.

Details

International Marketing Review, vol. 37 no. 3
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 9 January 2009

Maaja Vadi and Kulno Türk

The aim of this paper is to evaluate how Estonian enterprises understand their position in the value chain, and to explore what kind of behaviour patterns correspond to the…

Abstract

Purpose

The aim of this paper is to evaluate how Estonian enterprises understand their position in the value chain, and to explore what kind of behaviour patterns correspond to the different positions. It also aims to focus on the question of whether and how Estonian enterprises see the need to improve their position in the value chain.

Design/methodology/approach

The approach is based on an empirical study in the course of which original interviews were conducted on the basis of a common plan (primary sources), and expert opinions were gathered on the basis of earlier studies. Two kinds of sources were analyzed to obtain an overview of the situation in Estonian companies in respect to strategy, and more specifically how companies evaluate their position in the value chain and what their aspirations for future are. First, the figureheads from the enterprises were interviewed in 14 enterprises. Second, expert assessments were drawn up about 25 enterprises. Those compiling the expert opinions possessed prior direct contacts with the enterprises under focus.

Findings

First, it was discovered that Estonian enterprises presented three types of behaviour patterns along with their interest in and/or potential for changing their position in the value chain. Second, several behavioural patterns were indicated by what the figureheads had to say about the current economic situation. Third, the main problems in Estonian enterprises were identified.

Research limitations/implications

The study has limitations due to the number of companies that were investigated, and therefore the authors also admit a certain degree of subjectivity in the defining of the behaviour patterns. Nevertheless, this study highlights various issues that Estonian enterprises consider in respect to strategy.

Originality/value

The main value of the paper is its contribution to our understanding of which factors impact the development of Estonian enterprises. This knowledge allows us to analyze how organizations from former Soviet bloc countries can better manage their position in the value chain.

Details

Baltic Journal of Management, vol. 4 no. 1
Type: Research Article
ISSN: 1746-5265

Keywords

Article
Publication date: 1 February 1989

Bernard C. Reimann

We continue to be intrigued by the number of managers we meet who haven't read Michael Porter's book Competitive Advantage. For them and practitioners on the corporate…

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Abstract

We continue to be intrigued by the number of managers we meet who haven't read Michael Porter's book Competitive Advantage. For them and practitioners on the corporate battlefront, we offer this synopsis of Porter's ideas from Professor Reimann's Managing for Value.

Details

Planning Review, vol. 17 no. 2
Type: Research Article
ISSN: 0094-064X

Book part
Publication date: 11 July 2018

Stelios Varvaressos

The scope of this chapter is to present in a simple and synoptic way the main components of tourism as a consumer-driven business field. The main purpose of this chapter is to…

Abstract

Purpose

The scope of this chapter is to present in a simple and synoptic way the main components of tourism as a consumer-driven business field. The main purpose of this chapter is to discuss the tourism system and tourism value chain as the analytical frameworks for tourism businesses.

Methodology/approach

A literature review was conducted on conceptual issues and managerial aspects of tourism system and value chain.

Findings

This chapter highlights the fact that tourism is not a science or a scientific discipline; it is just a body of knowledge. It presents, in a synoptic and clear way, the building blocks of the tourism, that is, the approaches of tourism system and tourism value chain, as well as the concept of tourism experience.

Research limitations/implications

This chapter is explorative in nature, because the discussion is mostly based on a literature review.

Practical implications

Tourism is a multifaceted activity, which touches upon many different economic activities that are connected as a system. Thus, tourism must be understood as a system that includes interrelated elements working together. The model of a value chain can be applied in tourism, both at business and destination levels. Tourists are the focal point of the global value chain in international tourism.

Originality/value

This chapter analyses analytical frameworks, models and concepts in an integrated way. This analysis is very useful in creating a better understanding of the tourism industries and the business ventures in this field.

Details

The Emerald Handbook of Entrepreneurship in Tourism, Travel and Hospitality
Type: Book
ISBN: 978-1-78743-529-2

Keywords

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