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Rethinking business performance in global value chains

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  • Mouzas, Stefanos
  • Bauer, Florian

Abstract

This paper develops a theoretical foundation for rethinking business performance in global value chains amid the Covid-19 fallout. Specifically, we synthesize business performance into three potentially reinforcing but also conflicting performance systems: 1) operational efficiency, 2) market effectiveness and 3) financial resilience to examine their effect on a) profitability, b) growth and c) solvency. While some specific measures of business performance will suffice in times of stability and growth, they could make firms operating in global value chains vulnerable in times of adversity. Our comprehensive theoretical framework contributes to our understanding of the dynamic interplay of conflicting performance systems. We discuss implications for assessing business performance and provide directions for further research.

Suggested Citation

  • Mouzas, Stefanos & Bauer, Florian, 2022. "Rethinking business performance in global value chains," Journal of Business Research, Elsevier, vol. 144(C), pages 679-689.
    • Handle: RePEc:eee:jbrese:v:144:y:2022:i:c:p:679-689
    DOI: 10.1016/j.jbusres.2022.02.012
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