Global value chain governance: Intersections with international business

What does the COVID-19 pandemic teach us about global value chains? The case of medical supplies

“…The GVC approach has spawned a proliferation of review articles that highlight the complementarity of scholarship on GVCs, global strategy, and international business, including the evolving capabilities of MNE lead firms and domestic suppliers (Hernandez & Pedersen, 2017 ; Kano, Tsang, & Yeung, 2020 ; McWilliam, Kim, Mudambi, & Nielsen, 2020 ; De Marchi, Di Maria, Golini, & Perri, 2020 ). In effect, GVCs link the macro-level of international trade, investment, and finance with the meso-level of national and regional economies, and the micro-level of local suppliers, communities, and workers.…”

Uma abordagem teórica neoinstitucional relevante e abrangente teria sido indevidamente ignorada pelo campo de negócios internacionais?

“…The boundary rule suggests that local managers care about their heritage and public image in the region, which leads them to act more responsibly with respect to common goods, of which the environment is a particularly important one. Yet another implication of the study's results can be derived with respect to the integration of developing country clusters into global value chains (McWilliam et al, 2019). Although the dominant trend in this theoretical perspective holds that the integration of clusters promotes several types of positive results (product, value and functional upgrading, for example) (Gereffi & Lee, 2016), others point out that this integration promotes the "race to the bottom", a deterioration of social and economic conditions of workers ( Kaplinsky, 2000).…”

Multinational enterprises and the governance of sustainability practices in emerging market supply chains: An agile governance perspective

“…In recent years, supply chains have increasingly become globalized and dispersed ( Kano, Tsang, & Yeung, 2020 ; McWilliam et al, 2020 ). Traditionally, to address the governance challenges imposed by emerging market supply chains, AMNEs have used contractual mechanisms ( Bird & Soundararajan, 2020 ) that govern relationships through formal agreements that determine modes of interactions and remedies, for breaches and unexpected events ( Poppo & Zenger, 2002 ).…”

“…Despite rapidly growing interest in understanding the antecedents and consequences of strategic agility, the extant literature provides a relatively limited discussion of the development of agile supply chain governance mechanisms ( Ivory & Brooks, 2018 ). This oversight is surprising, as the effective governance of supply chains, which is directly related to AMNE performance ( Eccles, Ioannou, & Serafeim, 2014 ; Kano, 2018 ), can provide important means and guidelines suited to facilitate relationships with supply chain partners, mitigate ambiguity and conflicts, achieve common goals, and gain superior performance ( Gereffi, 2019 ; Liu, Luo, & Liu, 2009 ; McWilliam et al, 2020 ).…”

“…Second, the rather rigid sustainability benchmarks imposed by AMNEs are often at odds with the inherently complex, unpredictable, and resource-constrained nature of emerging market supply chains. Third, the AMNEs’ existing governance mechanisms disregard the local institutional factors—including culture and socio-economic conditions—that shape the sustainability practices of emerging market suppliers ( McWilliam, Kim, Mudambi, & Nielsen, 2020 ; Narula, 2019 ; Wilhelm, Blome, Bhakoo, & Paulraj, 2016 ). As a result, top-down governance mechanisms carry little legitimacy among emerging market suppliers ( Schouten et al, 2012 ), as they limit their ability to bring about positive change in global supply chains ( Fung, 2003 ).…”