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Value chain governance in the age of platforms

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  • Humphrey, John

Abstract

Global value chain (GVC) theory focuses globalisation in the late 20th century. While the theory claims to apply generally to interfirm relationships, much of GVC analysis has focused on the incorporation of developing country manufacturers into the supply chains of global lead firms. This literature has frequently expressed doubts about whether integration into such chains offers opportunities for innovation and upgrading. More recently, globalised production has seen the emergence of market and technology platforms and platform leaders. The distinctive feature of platforms is that they require innovation by other companies to turn platforms into products. Analysis of platform governance can contribute to the further development of GVC governance theory. Using secondary material on platform leaders such as Intel and Apple and primary research on Chinese-owned mobile phone companies, the paper shows how examination of governance in the context of platforms allows a recuperation of understudied and undertheorised elements of GVC governance theory.

Suggested Citation

  • Humphrey, John, 2018. "Value chain governance in the age of platforms," IDE Discussion Papers 714, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper714
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    References listed on IDEAS

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    1. 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.
    2. Kevin J. Boudreau & Andrei Hagiu, 2009. "Platform Rules: Multi-Sided Platforms as Regulators," Chapters, in: Annabelle Gawer (ed.), Platforms, Markets and Innovation, chapter 7, Edward Elgar Publishing.
    3. Williamson, Oliver E, 1971. "The Vertical Integration of Production: Market Failure Considerations," American Economic Review, American Economic Association, vol. 61(2), pages 112-123, May.
    4. Carliss Y. Baldwin, 2008. "Where do transactions come from? Modularity, transactions, and the boundaries of firms," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 17(1), pages 155-195, February.
    5. Carliss Y. Baldwin & C. Jason Woodard, 2009. "The Architecture of Platforms: A Unified View," Chapters, in: Annabelle Gawer (ed.), Platforms, Markets and Innovation, chapter 2, Edward Elgar Publishing.
    6. Timothy J. Sturgeon & Momoko Kawakami, 2011. "Global value chains in the electronics industry: characteristics, crisis, and upgrading opportunities for firms from developing countries," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 4(1/2/3), pages 120-147.
    7. Williamson, Oliver E, 1983. "Credible Commitments: Using Hostages to Support Exchange," American Economic Review, American Economic Association, vol. 73(4), pages 519-540, September.
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    Cited by:

    1. Butollo, Florian & Schneidemesser, Lea, 2022. "Who runs the show in digitalized manufacturing? Data, digital platforms and the restructuring of global value chains," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 22(4), pages 595-614.
    2. Lechowski, Grzegorz & Krzywdzinski, Martin, 2022. "Emerging positions of German firms in the industrial internet of things: A global technological ecosystem perspective," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 22(4), pages 666-683.

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    More about this item

    Keywords

    Global value chains; Governance; Platforms; Platform leadership; Standards; International economic relations; Industrial management;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • F2 - International Economics - - International Factor Movements and International Business
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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