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Asian firms and the restructuring of global value chains

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  • Azmeh, Shamel
  • Nadvi, Khalid

Abstract

Asian trans-national garment manufacturers are transforming the structure of global value chains in the apparel industry. Recent studies show such first tier suppliers undertaking a greater range of functional activities. In many cases, these firms originate from the so-called ‘Rising Power’ economies, particularly ‘Greater China’ and South Asia. We argue that such, transnational, Asian firms can play a pivotal and strategic role in shaping the geography and organisational restructuring of the global value chain. Drawing on secondary sources and primary research we illustrate how such firms manage complex international production linkages, and ensure the incorporation of Jordan into the global garment industry. The paper contributes to the understanding of the role of these firms and how their behaviour is driven by complex dynamics linked to their own business strategies, their linkages with buyers, and their ability to exploit production and trade opportunities while maintaining high levels of global locational flexibility.

Suggested Citation

  • Azmeh, Shamel & Nadvi, Khalid, 2014. "Asian firms and the restructuring of global value chains," International Business Review, Elsevier, vol. 23(4), pages 708-717.
  • Handle: RePEc:eee:iburev:v:23:y:2014:i:4:p:708-717
    DOI: 10.1016/j.ibusrev.2014.03.007
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    References listed on IDEAS

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    1. Dieter Ernst, 2002. "Global production networks and the changing geography of innovation systems. Implications for developing countries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(6), pages 497-523.
    2. Rotunno, Lorenzo & Vézina, Pierre-Louis & Wang, Zheng, 2013. "The rise and fall of (Chinese) African apparel exports," Journal of Development Economics, Elsevier, vol. 105(C), pages 152-163.
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    Cited by:

    1. Azmeh, Shamel, 2015. "Transient global value chains and preferential trade agreements: rules of origin in US trade agreements with Jordan and Egypt," LSE Research Online Documents on Economics 64601, London School of Economics and Political Science, LSE Library.
    2. Schmid, Stefan & Grosche, Philipp & Mayrhofer, Ulrike, 2016. "Configuration and coordination of international marketing activities," International Business Review, Elsevier, vol. 25(2), pages 535-547.
    3. repec:spr:intemj:v:13:y:2017:i:3:d:10.1007_s11365-016-0423-6 is not listed on IDEAS
    4. Giorgos Galanis & Ashok Kumar, 2018. "A dynamic spatial model of global governance structures," Working Papers PKWP1804, Post Keynesian Economics Society (PKES).
    5. Staritz, Cornelia & Frederick, Stacey, 2016. "Harnessing foreign direct investment for local development? Spillovers in apparel global value chains in sub-Saharan Africa," Working Papers 59, Österreichische Forschungsstiftung für Internationale Entwicklung (ÖFSE) / Austrian Foundation for Development Research.
    6. Igor Laine & Tamara Galkina, 0. "The interplay of effectuation and causation in decision making: Russian SMEs under institutional uncertainty," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-37.

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