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Strategic upgrading of subordinate firms in global value chains: Example of French Ardennes livestock breeders investing in biogas units
[Les « upgradings stratégiques » des firmes subordonnées dans les CGV : le cas des éleveurs investissant dans des unités de méthanisation]

Author

Listed:
  • Alexandre Berthe

    (LIED (UMR_8236) - Laboratoire Interdisciplinaire des Energies de Demain - UPD7 - Université Paris Diderot - Paris 7 - CNRS - Centre National de la Recherche Scientifique, LIRIS - Laboratoire interdisciplinaire de recherche en innovations sociétales - UR2 - Université de Rennes 2 - UNIV-RENNES - Université de Rennes)

  • Pascal Grouiez

    () (LADYSS - Laboratoire Dynamiques Sociales et Recomposition des Espaces - UP1 - Université Panthéon-Sorbonne - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - UPD7 - Université Paris Diderot - Paris 7 - CNRS - Centre National de la Recherche Scientifique, UPD7 - Université Paris Diderot - Paris 7)

  • Louis Dupuy

    () (Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales - Université Montesquieu - Bordeaux 4)

Abstract

"This article considers the analysis of upgrading strategies, focusing at the level of subordinate firms themselves, with a more classical study at the GVC level. This approach develops the concept of "strategic upgrading," studies the institutional environment of subordinate firms, and draws on concepts from industrial economics, such as differentiation, diversification, and specialization, in order to understand these firms' strategies. It thus reexamines the category of inter-chain upgrading, i.e., the improvement of the position of actors of a GVC by integrating a new GVC. We confront this proposal with a territorialized case study on the development of biogas production by farmers in the Ardennes. We observe that these farmers are part of the emerging GVC of biomass energy based on their experience as "captive" actors in the agro-industrial GVC. In particular, they have sized their biogas production units to be autonomous regarding agro-industry. This new activity also has feedback effects on their positioning in the agro-industrial GVC.JEL classification: L22, L23, Q13, Q16, Q42.

Suggested Citation

  • Alexandre Berthe & Pascal Grouiez & Louis Dupuy, 2018. "Strategic upgrading of subordinate firms in global value chains: Example of French Ardennes livestock breeders investing in biogas units [Les « upgradings stratégiques » des firmes subordonnées dan," Post-Print halshs-02272927, HAL.
  • Handle: RePEc:hal:journl:halshs-02272927
    DOI: 10.4000/rei.7414
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-02272927
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    Keywords

    strategic upgrading; global value chain (GVC); agriculture; biogas production; biomass; agro-industrial firms; joint products; subordinate firms’ strategies; interchain upgrading; firmes agro-industrielles; produits-joints; biomasse-énergie; méthanisation; METHA’REVENUS; stratégies de firmes subordonnées; upgrading inter-chaîne; chaîne globale de valeur (CGV); upgrading stratégique;

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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