COVID‐19’s impacts on global value chains, as seen in the apparel industry

Navarrete, Jennifer Castañeda; Hauge, Jostein; López‐Gómez, Carlos

doi:10.1111/dpr.12539

Cited by 51 publications

(29 citation statements)

References 27 publications

(28 reference statements)

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“…The US, South Korea, Japan, and Germany are the most affected countries, while the most affected sectors include electronic and optical equipment, textiles, machinery, manufacturing, and wholesale trade. Castañeda‐Navarrete et al (2020) undertake detailed research on the global apparel value chain, showing the direct impact of the pandemic through the sickness of workers and reduced production, which they also connect with the situation of reduced demand in high‐income countries. The main sufferers are the low‐ and middle‐income countries that are the major producers and exporters of clothing.…”

Section: Impact Of the Pandemic On Global Value Chains (Gvcs)mentioning

confidence: 99%

The COVID‐19 pandemic and the internationalization of production: A review of the literature

Kersan-Škabić

2021

Development Policy Review

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Summary Motivation The COVID‐19 pandemic has substantially altered the context for cross‐border business. This is reflected in trade flows but also affects the conditions for conducting dispersed production functions across countries. This “new normal” period presents the need to examine the main problems/challenges in international trade and business. Purpose The article aims to establish the scope, aspects and implications of the COVID‐19 pandemic on international trade and on international production by reviewing recent articles which deal with international trade and global value chain (GVC) issues, changes that were already taking place and the challenges that began in 2020. Methods and approach The findings of recent articles on trade flows and changes in GVCs (mainly the period 2019–2021) are described in theoretical terms, compared and systematically reviewed. Special focus is given to the impact of the pandemic on GVCs, re‐nationalization and GVCs and the impact of the pandemic on GVC governance, and GVCs in the production of vaccines for the COVID‐19 virus. Findings Trade recorded a drop in 2020, accompanied with the introduction of protective trade policy measures. Reduced GVC activities had a negative impact on welfare and the “re‐nationalization” of GVC‐related activities is not a real solution. For the development of GVCs it is important to find a trade‐off between efficiency and resilience, starting with re‐organization (re‐engineering) of GVCs, and probably focusing on regional frameworks. Liberal trade policies are essential to ensure the involvement of GVCs in producing the COVID‐19 vaccines since the various inputs are produced in different countries. Policy implications The possible directions for the future development of GVCs are elaborated: re‐shoring, resilience in supply chains, adjustments in governance, diversification and development of risk‐management strategies. The process of internationalization is not in question, but presents challenges which create the need for adjustments in its future development. Current problems with vaccine production arise in part from imposed trade barriers and rising nationalism. There is a need for greater cross‐country co‐operation to avoid placing national short‐term interests before long‐term and broader objectives.

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Section: Impact Of the Pandemic On Global Value Chains (Gvcs)mentioning

confidence: 99%

The COVID‐19 pandemic and the internationalization of production: A review of the literature

Kersan-Škabić

2021

Development Policy Review

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“…Maital and Barzani (2020) highlighted that the factory closures in China and around the globe have led to a contraction in the macroeconomic supply of goods and services affecting the global economy. This was also echoed in the work of Castañeda-Navarrete et al (2021), who highlighted that the reduction of the output of materials in the world's manufacturing led to direct supply disruption during the pandemic (Haren and Simchi-Levi, 2020). A survey by Norwood and Peel (2021) in the US market shows that nearly 38 per cent of respondents agreed about their everyday struggles with out-of-stock food products, whereas 44 per cent of individuals admitted sometimes having faced these issues.…”

Section: Economic Challengesmentioning

confidence: 96%

Investigating the impact of COVID-19 on sustainable food supply chains

Kumar

Ekren

Wang

et al. 2022

JM2

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Purpose The ongoing pandemic has gravely affected different facets of society and economic trades worldwide. During the outbreak, most manufacturing and service sectors were closed across the globe except for essential commodities such as food and medicines. Consequently, recent literature has focused on studying supply chain resilience and sustainability in different pandemic contexts. This study aims to add to the existing literature by exploring the economic, environmental and societal aspects affecting the food supply chain and assessing the impact of COVID-19 on food sustainability. Design/methodology/approach A survey method has been adopted with a questionnaire instrument investigating the role of technology, government policies, geopolitics and intermediaries on sustainable organisational management. A five-point Likert scale (i.e. 1 = strongly disagree; 5 = strongly agree) is used to evaluate the responses. The findings are based on 131 responses from entry-level workers and senior executives of different food supply chains across Asia and Europe. The data has been analysed to derive insights into the impacts of this pandemic. Findings The survey concludes with the significant impact of COVID-19 on the three pillars of sustainability, i.e. economic, social and environmental dimensions. The empirical analysis shows digitalisation and its applications help mitigate the negative effect of COVID-19 on sustainability. In addition, the supportive government policies and intermediatory interventions were helpful in improving sustainability at each level. Research limitations/implications The findings have implications for businesses and policymakers. Companies can learn from the advantages of digitalisation to counter the challenges imposed by the pandemic or similar situations in the future in maintaining the sustainability of their supply chains. Managers can also learn the importance of effective organisational management in driving sustainability. Finally, policymakers can devise policies to support businesses in adopting sustainable practices in their supply chains. Originality/value This study adds to the limited literature exploring the impact of COVID-19 on food supply chain sustainability through the triple bottom line lens. To the best of the authors’ knowledge, this is also one of the first empirical studies to examine the effect of technology, government and organisational management practices on the sustainability of food supply chains.

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“…), a shortage of raw materials (e.g., electronics parts such as memory chips, building materials) (Pujawan and Bah, 2022). These supply chain disruptions are unevenly distributed among countries, industries and communities and highlight the instability within global markets (Bassett et al, 2021;Castañeda-Navarrete et al, 2021). Countries are seeking to reduce their reliability on global markets by building and strengthening resilient regional and domestic markets.…”

Section: The E Ect Of Covid-on Plastic Pollution and Supply Chainsmentioning

confidence: 99%

An imperative to focus the plastic pollution problem on place-based solutions

2022

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There is an increased focus on plastic pollution and the resultant harms in our oceans and on our shores at local, regional, and global scales. New technologies are being developed and trialed, multilateral agreements are coming into play, and the role of a circular economy is increasingly touted as the key to help solve the plastic pollution crisis. Simultaneously, we are witnessing the disruption of global supply chains from the COVID-19 pandemic, increased fuel prices and increased scope and scale of natural disasters. Individual countries are setting national targets and are developing national plans of action to combat plastic pollution. In this paper, we focus on Australia's National Plastics Plan as a case study of a national approach to addressing this transboundary issue. We discuss the Plan in relation to supply chains, the role of standards and best practices, and principles for a successful circular plastic economy. We explicitly consider the role of reverse logistics and regional approaches that could be developed and implemented within island nations. Overall, we argue for culturally appropriate, economically and environmentally place-based solutions as a necessary approach to help reduce plastic losses to the environment, acknowledging that plastics leakage to the environment is a social equity issue.

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COVID‐19’s impacts on global value chains, as seen in the apparel industry

Abstract: This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.

Cited by 51 publications

References 27 publications

The COVID‐19 pandemic and the internationalization of production: A review of the literature

The COVID‐19 pandemic and the internationalization of production: A review of the literature

Investigating the impact of COVID-19 on sustainable food supply chains

An imperative to focus the plastic pollution problem on place-based solutions

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