The Politics of Global Value Chains

Cox, Ronald W.; Wartenbe, Michael

doi:10.1007/978-3-319-51466-6_2

Cited by 3 publications

(4 citation statements)

References 21 publications

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“…Over the years, the company pursued an aggressive strategy focused on increasing its international presence, acquiring manufacturing assets in developed as well as developing nations, creating a truly global manufacturing network, with operations in 53 locations around the world, employing more than 200,000 people. Despite the razor-thin profit margins in contract manufacturing, Flextronics has thus been able to generate billions of dollars in profits by leveraging its country-specific advantages in home country and host countries, and its firm-specific advantages that included technology and assets, partnerships, extensive design and engineering capabilities (Cox and Wartenbe, 2018).…”

Section: Analyses Of Value Creation Routines Of Select Multinationalsmentioning

confidence: 99%

Global manufacturing value networks: assessing the critical roles of platform ecosystems and Industry 4.0

Das

Dey

2021

JMTM

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PurposeThe purpose of this paper is to synthesize a manufacturing value network for digital multinationals that combines the global reach of multinationals, the power of platform business models and digitalization. Toward this, the authors assess the critical roles platform ecosystems, and Industry 4.0 play in resolving the key challenges associated with asset specificity, location specificity and information asymmetry, inherent in the conventional business models of manufacturing multinationals.Design/methodology/approachThe authors take an exploratory approach in reviewing industry literature and analyzing implementations of digital technologies in manufacturing and supply chain processes at four large manufacturing multinationals from diverse industry sectors, from electronics to packaged food production. The authors also identify how value-creation activities are relocated, and how players collaborate to create and capture value. Consequently, the authors abstract a framework for global value network of manufacturing multinationals.FindingsWith changing definitions of industry, competition and organizations, the authors’ framework for manufacturing value network establishes the ways digitalization can be integrated in the global businesses of manufacturing multinationals, realizing the combinatorial effect of Industry 4.0 and platform ecosystems. The transformation redefines the ways multinationals have been leveraging their ownership-location-internalization (OLI) advantages. The authors recognize that the multinational orchestrator plays a critical role in creating shared goals for platform participants and governing the dynamics. In addition, the participants' propensity to trust the platform and the perceived trustworthiness of the orchestrator shape the scope and boundaries of the platform.Originality/valueThe authors raise critical questions about the role of multinational orchestrator and trust dimensions. In addition, the OLI-platform paradigm that incorporates the combinatorial effect of platform ecosystem and Industry 4.0 explains how multinationals create and capture value in new ways.

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Section: Analyses Of Value Creation Routines Of Select Multinationalsmentioning

confidence: 99%

Global manufacturing value networks: assessing the critical roles of platform ecosystems and Industry 4.0

Das

Dey

2021

JMTM

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“…For value chain governance, GVC scholars and business analysts have highlighted on the one hand how the increased importance of mutual data exchange and digital integration of operations forces lead firms to establish closer and longer‐term relationships with suppliers (Berg et al., 2017, p. 18; Brun et al., 2019, p. 51; Frederick et al., 2018, p. 8). On the other hand, more critical scholars have warned about premature conclusions that the trend toward closer lead firms supplier relations will also lead to more balanced power relations and value distribution within established GVCs (Cox & Wartenbe, 2018; Szalavetz, 2019). These scholars have argued that particularly within buyer‐driven value chains, in which smaller suppliers are traditionally dependent on larger buyers (c.f.…”

Section: Gvc Restructuring Under Digital Capitalism: Implications For...mentioning

confidence: 99%

“…These scholars have argued that particularly within buyer‐driven value chains, in which smaller suppliers are traditionally dependent on larger buyers (c.f. Gereffi, 1994), lead firm dominance is likely to continue: Given their power to determine production parameters and terms of exchange, lead firms will likely force suppliers to ‘take on the cost of technological upgrading, with much of the cost benefit being filtered to the lead firm’ (Cox & Wartenbe, 2018, p. 34).…”

Section: Gvc Restructuring Under Digital Capitalism: Implications For...mentioning

confidence: 99%

Digital value chain restructuring and labour process transformations in the fast‐fashion sector: Evidence from the value chains of Zara & H&M

et al. 2021

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In this article, we combine a workplace‐centred Labour Process Theory approach with a multi‐level Global Value Chain perspective to link digital labour process transformations in the fast‐fashion value chain to broader dynamics of digital value chain restructuring. Drawing on a case study of H&M and Zara, we show how these retailers’ digital supply chain management strategies are linked to the de‐skilling, standardization and rationalization of tasks and to the emergence of new digital forms of labour control in production, logistics and retail. At the same time, we find that the effects of these transformations on working conditions are mediated by workers’ position in the value chain as well as by gender and capital‐labour power relations. The article contributes to debates on value chains and digitalization by revealing how, under digital capitalism, the ability to control and digitally integrate labour processes in complex store, logistics and manufacturing networks represents a key source of power in buyer‐driven value chains.

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“…The transnational interest bloc concept has appeared in earlier work (e.g., Cox 2008Cox , 2012Cox and Wartenbe 2018). It begins with recognition of the central role of transnational corporations, including their political mobilization (8), such as the establishment of the US Business Roundtable in 1972 and, a year later, the Trilateral Commission.…”

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confidence: 99%

Book Review: Corporate Power, Class Conflict, and the Crisis of the New Globalization

Keaney¹

2022

Review of Radical Political Economics

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The Politics of Global Value Chains

Cited by 3 publications

References 21 publications

Global manufacturing value networks: assessing the critical roles of platform ecosystems and Industry 4.0

Global manufacturing value networks: assessing the critical roles of platform ecosystems and Industry 4.0

Digital value chain restructuring and labour process transformations in the fast‐fashion sector: Evidence from the value chains of Zara & H&M

Book Review: Corporate Power, Class Conflict, and the Crisis of the New Globalization

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