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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

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.

Suggested Citation

  • John Humphrey & Hubert Schmitz, 2008. "Inter-firm relationships in global value chains: trends in chain governance and their policy implications," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(3), pages 258-282.
    • Handle: RePEc:ids:ijtlid:v:1:y:2008:i:3:p:258-282
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    Citations

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    Cited by:

    1. 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.
    2. Zhanna A. Ermakova & Tatyana V. Andreeva & Raisa S. Vidischeva, 2019. "Methods for managing the food value chain," Upravlenets, Ural State University of Economics, vol. 10(5), pages 63-74, October.
    3. Chan, Jin Hooi & Reiner, David, 2019. "Evolution in inter-firm governance along the transport biofuel value chain in Maritime Silk Road countries," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 268-282.
    4. 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.
    5. 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.
    6. Adolf Akwei Acquaye & Fred Amofa Yamoah & Taofeeq Ibn-Mohammed & Enoch Quaye & David Eshun Yawson, 2023. "Equitable Global Value Chain and Production Network as a Driver for Enhanced Sustainability in Developing Economies," Sustainability, MDPI, vol. 15(19), pages 1-23, October.
    7. F. Cafaggi, 2012. "Transnational Governance by Contract – Private Regulation and Contractual Networks in Food Safety," Chapters, in: Axel Marx & Miet Maertens & Johan Swinnen & Jan Wouters (ed.), Private Standards and Global Governance, chapter 8, Edward Elgar Publishing.
    8. Fujita, Mai, 2013. "Exploring the sources of China's challenge to Japan : models of industrial organisation in the motorcycle industry," IDE Discussion Papers 419, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    9. Riedel, Bettina, 2009. "A value chain and cluster perspective on competitiveness of European fresh vegetable production – Case studies from Germany, Italy, and Spain," DEIAgra Working Papers 54094, Alma Mater Studiorum - University of Bologna, Department of Agricultural Economics and Agricultural Engineering.
    10. Giuseppe Tattara, 2012. "Flexible Strategy for Small and Medium-sized Multinationals in Asia," Working Papers 2012_06, Department of Economics, University of Venice "Ca' Foscari", revised 2012.
    11. Tattara, Giuseppe, 2012. "From competitive advantage to dynamic capabilities: small and medium-sized multinationals in Asia," MPRA Paper 39364, University Library of Munich, Germany.
    12. 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).
    13. Inge Ivarsson & Claes Göran Alvstam, 2010. "Upstream Control and Downstream Liberty of Action?," Review of Market Integration, India Development Foundation, vol. 2(1), pages 43-60, April.
    14. Yoruk, Deniz E., 2019. "Dynamics of firm-level upgrading and the role of learning in networks in emerging markets," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 341-369.
    15. Mark P. Sallos & Esin Yoruk & Alexeis García-Pérez, 2017. "A business process improvement framework for knowledge-intensive entrepreneurial ventures," The Journal of Technology Transfer, Springer, vol. 42(2), pages 354-373, April.
    16. F. Cafaggi & P. Iamiceli, 2014. "Supply chains, contractual governance and certification regimes," European Journal of Law and Economics, Springer, vol. 37(1), pages 131-173, February.
    17. Humphrey, John, 2018. "Value chain governance in the age of platforms," IDE Discussion Papers 714, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    18. 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.

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