Local Entrepreneurship within Global Value Chains: A Case Study in the Mexican Automotive Industry

Contreras, Óscar F.; Carrillo, Jorge; Alonso, Jorge

doi:10.1016/j.worlddev.2011.11.012

Cited by 57 publications

(49 citation statements)

References 19 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The first strategy targets increased legitimacy for suppliers within the position they already occupy. This strategy is likely to occur under highly asymmetric power conditions (Choksy, ; Contreras, Carrillo, & Alonso, ; Darby, ; Murphy, ). The second strategy involves suppliers' attempts to diversify into new positions to reduce their dependency on single GVC actors and thus bring more balance into existing asymmetric relationships (Fujita, ; Navas‐Alemán, ; Sato, ).…”

Section: Resultsmentioning

confidence: 99%

Exploring the relationship between upgrading and capturing profits from GVC participation for disadvantaged suppliers in developing countries

Choksy

Sinkovics

2017

Can J Adm Sci

View full text Add to dashboard Cite

The existing literature on global value chains (GVCs) suggests that functional upgrading is a key determinant of whether suppliers are able to capture higher profits in GVCs. However, it is unclear whether the same argument holds for disadvantaged suppliers who face high barriers to achieving functional upgrading. Through a review of existing empirical studies, the present paper aims to explore how disadvantaged suppliers in developing countries increase their profits in the face of barriers to functional upgrading. The findings from the literature analysis suggest that the ability of disadvantaged suppliers to benefit from GVC participation depends on the extent of their managerial agency and their ability to leverage multiple upgrading/downgrading trajectories (whether product, process, or functional) and transform them into profitable outcomes. Copyright © 2017 ASAC. Published by John Wiley & Sons, Ltd.Keywords: upgrading, functional upgrading, position, global value chains, profit margins Résumé Pour les auteurs des travaux existants sur les chaînes de valeur mondiales (GVC), c'est la modernisation fonctionnelle qui détermine si les fournisseurs sont en mesure de réaliser des profits importants dans le cadre des GVC. Mais ces auteurs n'indiquent pas si ce postulat s'applique également aux fournisseurs défavorisés qui, pour réaliser leur modernisation fonctionnelle, doivent faire face à des obstacles majeurs. Dans le présent article, nous explorons, grâce à une revue des travaux empiriques existants, la manière dont les fournisseurs défavorisés des pays en voie de développement augmentent leurs profits en dépit des obstacles qui entravent leur modernisation fonctionnelle. Nos résultats révèlent que la capacité des fournisseurs défavorisés à tirer profit de leur participation aux GVC dépend de la taille de leur organisme managérial et de leur aptitude à transformer les multiples mouvements de modernisation/dégradation (des produits, des processus ou des fonctions) en revenus.

show abstract

Section: Resultsmentioning

confidence: 99%

Exploring the relationship between upgrading and capturing profits from GVC participation for disadvantaged suppliers in developing countries

Choksy

Sinkovics

2017

Can J Adm Sci

View full text Add to dashboard Cite

show abstract

“…Linking lead firms in GVCs with small and medium suppliers in diverse local contexts is a major business challenge in different types of industries, whether characterized by producer-driven chains like automobiles, electronics or shipbuilding for whom finding and nurturing technically capable local suppliers is a requisite of global supply chain management for manufacturers who play a leading role in determining what and how to produce (Contreras et al 2012;Sturgeon 2003;Sturgeon et al 2008), or in buyer-driven chains like apparel and footwear, where low cost is a major driver and retail buyers govern how the chains work (Bair and Gereffi 2001;Schmitz 2004Schmitz , 2006, or fresh produce and food products, where safety and quality standards are of utmost concern for supermarkets and their customers (Humphrey and Memedovic 2006).…”

Section: Introductionmentioning

confidence: 99%

Economic and Social Upgrading in Global Value Chains and Industrial Clusters: Why Governance Matters

2014

View full text Add to dashboard Cite

show abstract

“…This is of course linked to the comparative advantage of Brazil in natural resources, and may offer opportunities for local firms' learning and upgrading related to the investments in science and technology development related to mining and natural resources. On the opposite side is Mexico, which is located more at the end of GVCs and acts as a final producer, using inputs provided by upstream countries in the form of maquila (factory) processing operations (Contreras et al, 2012;De La Cruz et al, 2011;Dussel Peters, 2003). 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 more upstream in the value chain in all the services sectors, while Mexico, in line with the result at the aggregate level is, on average, the most downstream, with the exception of financial intermediates.…”

Section: Insert Figure 2 Here -Gvc Indicators: International Comparisonmentioning

confidence: 99%

Opening and linking up: firms, GVCs, and productivity in Latin America

2017

View full text Add to dashboard Cite

This work explores the relationship between exports, global value chains (GVCs)’ participation and position, and firms’ productivity. To this aim, we combine the most recent World Bank Enterprise Survey in Latin American and Caribbean (LAC) countries with the Organisation for Economic Co-operation and Development and World Trade Organization trade in value-added data. To explore the above relationship, we adopt an extended version of the standard Cobb-Douglas output function including indicators of export performance and GVCs. We control for heterogeneity among firms (by country, region, and industry), sample selection, firms’ characteristics, and reverse causality.\ud Our empirical outcomes confirm the presence of a positive relationship between participation in international activities and firm performance. They also show that both participation in GVCs and position within GVCs matter. These findings have strong policy implications and may help policymakers in choosing the best policy options to enhance the link between GVCs’ integration and firms’ productivity

show abstract

Local Entrepreneurship within Global Value Chains: A Case Study in the Mexican Automotive Industry

Cited by 57 publications

References 19 publications

Exploring the relationship between upgrading and capturing profits from GVC participation for disadvantaged suppliers in developing countries

Exploring the relationship between upgrading and capturing profits from GVC participation for disadvantaged suppliers in developing countries

Economic and Social Upgrading in Global Value Chains and Industrial Clusters: Why Governance Matters

Opening and linking up: firms, GVCs, and productivity in Latin America

Contact Info

Product

Resources

About