IDEAS home Printed from
   My bibliography  Save this article

Governance, value chain positioning and firms' heterogeneous performance: The case of Tuscany


  • Giovannetti, Giorgia
  • Marvasi, Enrico


The recent trade literature has shown how incomplete contracts can shape firms' boundary and the decision of whether to outsource or integrate vertically. Related evidence and conceptualizations from the business literature show that buyer-supplier relations in global value chains can take several governance structures, depending on the degree of vertical coordination and power relations between firms. Building upon these two non-competing strands of the literature, we construct a taxonomy of firms that considers their positioning (upstream or downstream), their belonging to domestic or global value chains and the type of relations they entertain with other firms. We apply our taxonomy to the 2011 census of firms operating in Tuscany. We first describe regional characteristics and then study how positioning and governance affect firms' decisions and performance. Our results show that firms in hierarchical value chains are more productive than those in market chains; that firms involved in global value chains outperform the one outside or in domestic value chains, and, finally, that firms which are both suppliers and buyers in a value chain have the highest productivity premium.

Suggested Citation

  • Giovannetti, Giorgia & Marvasi, Enrico, 2018. "Governance, value chain positioning and firms' heterogeneous performance: The case of Tuscany," International Economics, Elsevier, vol. 154(C), pages 86-107.
  • Handle: RePEc:eee:inteco:v:154:y:2018:i:c:p:86-107
    DOI: 10.1016/j.inteco.2017.11.001

    Download full text from publisher

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Yilmaz Kili├žaslan & Ugur Aytun & Oytun Me├žik, 2019. "Global Value Chain Integration and Productivity: The Case of Turkish Manufacturing Firms," Working Papers 1283, Economic Research Forum, revised 2019.

    More about this item


    Global value chains; Buyer-supplier relations; Heterogeneous firms; International trade; Firms' performance; F14; F23;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:inteco:v:154:y:2018:i:c:p:86-107. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Haili He). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.