Firm innovation and global value chain participation

Reddy, Ketan; Chundakkadan, Radeef; Sasidharan, Subash

doi:10.1007/s11187-020-00391-3

Cited by 46 publications

(36 citation statements)

References 83 publications

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“…Li et al (2020) argued that through independent innovation, it would be possible for local enterprises to raise their role in the global value chain system. Reddy et al (2020) also have similar beliefs that independent innovation is the root driving force for companies to participate in global value chains.…”

Section: Literature Reviewmentioning

confidence: 90%

Designing benefit distribution driven innovation strategy for local enterprises under the global value chain system

2021

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The threat from multinational enterprises to local enterprises in developing countries is increasing with the in‐depth development of global value chain cooperation. To increase the profit distribution of local enterprises in global value chain, it is necessary to analyze the cooperation strategy between local enterprises and multinational enterprises. In this paper, cooperative game theory is applied to form a better understanding of cooperation between local enterprises and multinational enterprises. The Shapley values under different cooperative models are analyzed. Based on the analysis, the paper provides some suggestions for local enterprises to enhance the profit distribution of cooperation with multinational enterprises.

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Section: Literature Reviewmentioning

confidence: 90%

Designing benefit distribution driven innovation strategy for local enterprises under the global value chain system

2021

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“…On the one hand, the sophistication of value chains has created higher entry barriers for smaller firms, especially for those lacking previous international experience (e.g. Majocchi et al 2005; Schweizer 2012); on the other hand, the global fragmentation of value chains has opened up new opportunities for smaller firms, supporting their international expansion into new sectors and markets and enhancing their innovation potential by linking them to new sources of knowledge (Reddy et al 2020; Ryan et al 2020). Agostino et al (2020) argue that MSE participation in GVCs leads to greater efficiency, although this gain is especially noteworthy for suppliers in the so-called “relational” GVCs, where tacit information is exchanged between buyers and suppliers with unique capabilities in a trust and reputation-based relationship.…”

Section: Literature Reviewmentioning

confidence: 99%

Microfoundations of global value chain research: Big decisions by small firms

2022

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In this study, we introduce a unique longitudinal dataset from the Italian Ministry of Economy and Finance Annual Survey (IMEFAS) to assess how micro and small enterprises (MSEs) partake in the global economy by tapping into global value chains (GVCs). The results of the empirical analysis show that the great majority of micro and small enterprises are unable to establish direct links with GVCs. However, two sub-categories of subcontractors and branded producers were able to accomplish upgrading and partake in GVCs after the 2008 economic crisis. For both groups of firms, strategies implemented in domestic value chains contributed to their future participation in GVCs. By identifying small firms’ value chain decisions associated with their ability to access GVCs directly, this study sheds light on the microfoundations of GVCs. It paves the way for the future intersection of small business economics and GVCs, two areas of research that have seldom talked to each other.

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“…There is a well-established and growing body of literature which combines analysis of GVCs with a focus on innovation in firms, sectors and countries (de Marchi et al, 2018;Reddy et al, 2020;Tajoli & Felice, 2018). A large part of this literature assumes that GVC participation has a positive impact on innovation.…”

Section: The Literaturementioning

confidence: 99%

Deepening or delinking? Innovative capacity and global value chain participation in the IT industry

Lema

Pietrobelli

Rabellotti

et al. 2021

Industrial and Corporate Change

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Innovation trajectories in global value chains (GVCs) can take differentiated pathways. In this article, we address the question: do stylized trajectories emerge from the analysis of countries’ relative innovative capacity (IC) and GVC participation? We draw explorative insights from a cluster analysis of 45 countries on the two subsectors of the information technology industry: hardware and software. Our analysis uncovers remarkable differences between hardware and software and across countries. We identify different trajectories and discuss the sectoral specificities that contribute explaining their existence. The association between the strengthening of IC and a deeper insertion in GVCs applies only to a handful of countries and only in the software subsector. The specificity of this association raises questions for future research on innovation trajectories in GVCs.

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Firm innovation and global value chain participation

Cited by 46 publications

References 83 publications

Designing benefit distribution driven innovation strategy for local enterprises under the global value chain system

Designing benefit distribution driven innovation strategy for local enterprises under the global value chain system

Microfoundations of global value chain research: Big decisions by small firms

Deepening or delinking? Innovative capacity and global value chain participation in the IT industry

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