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Inter-firm relationships in global value chains: trends in chain governance and their policy implications

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  • John Humphrey
  • Hubert Schmitz
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    Abstract

    Much of international trade is coordinated by the lead firms of Global Value Chains (GVCs) and regulated through global standards. The way in which this global governance is exercised has a significant impact on the organisation of Small and Medium-sized Enterprises (SME) clusters and their upgrading opportunities. This paper is particularly concerned with the global governance structures themselves – i.e. with GVCs, global standards and their interaction. The objective of the paper is to understand this public–private institutional context for international trade. To this end, the paper looks at the following questions: What is chain governance? When does it arise? How do chain governance and global standards interact? What are the likely trends in the global governance of value chains? What is the policy relevance of these governance structures? The paper sums up the literature on local industrial development and emphasises that understanding the changes at a local level requires an understanding of the changes in global governance.

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    Bibliographic Info

    Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Technological Learning, Innovation and Development.

    Volume (Year): 1 (2008)
    Issue (Month): 3 ()
    Pages: 258-282

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    Handle: RePEc:ids:ijtlid:v:1:y:2008:i:3:p:258-282

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    Web page: http://www.inderscience.com/browse/index.php?journalID=240

    Related research

    Keywords: global governance; global value chains; GVC governance; standards; SME clusters; local industrial development; SMEs; small and medium-sized enterprises.;

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    Cited by:
    1. Tattara, Giuseppe, 2012. "From competitive advantage to dynamic capabilities: small and medium-sized multinationals in Asia," MPRA Paper 39364, University Library of Munich, Germany.
    2. Terheggen, Anne, 2010. "The new kid in the forest: the impact of China's resource demand on Gabon's tropical timber value chain," MPRA Paper 37982, University Library of Munich, Germany.
    3. Fujita, Mai, 2013. "The Japanese and Chinese models of industrial organisation : fighting for supremacy in the Vietnamese motorcycle industry," IDE Discussion Papers 420, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    4. Bettina Riedel, 2009. "A value chain and cluster perspective on competitiveness of European fresh vegetable production – Case studies from Germany, Italy, and Spain," DEIAgra Working Papers 9001, Alma Mater Studiorum University of Bologna, Department of Agricultural Economics and Engineering, revised Oct 2009.
    5. Tattara, Giuseppe, 2010. "Offshoring to China and India: Case Studies of Italian Small-Medium-sized Firms," MPRA Paper 29175, University Library of Munich, Germany, revised 2010.
    6. Martin Borowiecki & Bernhard Dachs & Doris Hanzl-Weiss & Steffen Kinkel & Johannes Pöschl & Magdolna Sass & Thomas Christian Schmall & Robert Stehrer & Andrea Szalavetz, 2012. "Global Value Chains and the EU Industry," wiiw Research Reports 383, The Vienna Institute for International Economic Studies, wiiw.

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