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Global Value Chain Governance and Power Asymmetry between Lead Firms and Suppliers: Case of Apple’s Global Value Chain and the State of Its Governance

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Listed:
  • Shoji Akino
  • Nobuhiko Yamanaka
  • Yawen Huang
  • Wataru Kikuchi

Abstract

The purpose of this paper is to elucidate modern production systems in which coordination and control among companies have become widespread globally. In particular, the authors aim to test the Global Value Chain (GVC) governance theory empirically with a focus on the state of Apple’s GVC governance. More specifically, the authors attempt to determine whether the relationships theoretically explained in Gereffi, Humphrey and Sturgeon (2005) can be observed in Apple’s GVC and contribute toward understanding Apple’s state of coordination. This study shows the state of coordination in Apple’s GVC does not necessarily correspond to the theoretical types. Simply put, the three determinants do not reflect the state of coordination in Apple’s GVC. This paper adopts augmenting and complementary explanations from the resource-dependence perspective to elucidate Apple’s GVC governance by empirically illustrating how Apple’s GVC governance are achieved through the accompanying asymmetric power relationships between the company and its suppliers.

Suggested Citation

  • Shoji Akino & Nobuhiko Yamanaka & Yawen Huang & Wataru Kikuchi, 2023. "Global Value Chain Governance and Power Asymmetry between Lead Firms and Suppliers: Case of Apple’s Global Value Chain and the State of Its Governance," International Journal of Business and Management, Canadian Center of Science and Education, vol. 16(9), pages 1-58, February.
    • Handle: RePEc:ibn:ijbmjn:v:16:y:2023:i:9:p:58
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    References listed on IDEAS

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    1. Yuqing Xing & Neal Detert, 2011. "How the iPhone Widens the United States Trade Deficit with the People's Republic of China:," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 66(03), pages 339-350, September.
    2. Mark P. Dallas & Stefano Ponte & Timothy J. Sturgeon, 2019. "Power in global value chains," Review of International Political Economy, Taylor & Francis Journals, vol. 26(4), pages 666-694, July.
    3. Yuqing Xing & Neal Detert, 2010. "How the iPhone Widens the United States Trade Deficit with the People’s Republic of China," Trade Working Papers 23280, East Asian Bureau of Economic Research.
    4. Yuqing Xing & Neal Detert, 2010. "How the iPhone Widens the United States Trade Deficit with the People’s Republic of China," Trade Working Papers 23128, East Asian Bureau of Economic Research.
    5. Stefano Ponte & Timothy Sturgeon, 2014. "Explaining governance in global value chains: A modular theory-building effort," Review of International Political Economy, Taylor & Francis Journals, vol. 21(1), pages 195-223, February.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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