The role of transnational first-tier suppliers in GVC governance

Raj‐Reichert, Gale

doi:10.4337/9781788113779.00031

Cited by 19 publications

(23 citation statements)

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“…Discernible trends were observed among suppliers of different tiers for indicators such as personnel costs (especially as regards domestic companies, the share of personnel costs increases neatly with higher tier), whereas lead firms report sharply lower shares (even lower than third‐tier suppliers). Lead firms also report lower R&D expenditures than first‐tier suppliers, which is in accordance with the trend of transferring R&D expenditures to key lead firm suppliers (Raj‐Reichert, 2019). In contrast, suppliers as well as lead firms report similar values of depreciations.…”

Section: Empirical Analysis Resultssupporting

confidence: 77%

Value capture by companies of different ownership, tier, size, and distance to market: A cross‐sectoral analysis

Blažek

Holická

2022

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This paper investigates a widespread assumption in the upgrading literature that lead firms and higher‐tier suppliers perform better and capture a larger value than lower‐tier suppliers. In contrast to other studies, this analysis is based on a detailed examination of a cross‐sectoral sample of 251 companies (including companies outside production networks) nested in a small economy (Czechia). Our results indicate that the economic performance of companies varies profoundly according to a number of characteristics. Generally, domestic firms tend to capture larger value, that is, they spend more on capital investments, research and development (R&D), and personnel costs. Surprisingly, lead firms tend to spend significantly less on personnel costs, taxes and R&D than first‐tier suppliers. The highest value capture is by firms operating outside production networks. The results warn against overgeneralisations and indicate the need for a careful context‐sensitive analysis before the design of supportive policies.

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Section: Empirical Analysis Resultssupporting

confidence: 77%

Value capture by companies of different ownership, tier, size, and distance to market: A cross‐sectoral analysis

Blažek

Holická

2022

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“…A shift away from efficiency would have significant consequences for who gets to participate in GVCs. If the focus on efficiency leads to a consolidation of production within large transnational first-tier suppliers, 43 we would expect lead firms to start diversifying their suppliers to better manage supply-chain risks. This diversification could create space for smaller suppliers in developing countries.…”

Section: Upgrading In Gvcsmentioning

confidence: 99%

The Future of Global Supply Chains in a Post-COVID-19 World

Panwar

Pinkse

Marchi

2022

California Management Review

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Supply-chain disruptions caused by the COVID-19 pandemic are of unparalleled magnitude because of a confluence of circumstances: a sudden rise in demand for some products, unforeseen shifts in demand points, supply shortages, a logistical crisis, and an unprecedentedly quick recovery in major economies. This article maps the changes that will occur in supply-chain planning and management in a post-COVID-19 world. It also reflects on the articles included in this special issue and draws key conclusions about how configurations of global supply chains might change. Automation and digitalization are likely to play a key role in these transitions.

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“…And how do they strategically find room for manoeuvre under the constraints set by buyers? (Sinkovics, Hoque and Sinkovics 2018;Raj-Reichert 2019). These questions carry significant implications for labour in apparel GVCs.…”

Section: First-tier Suppliers and Labour In Apparel Global Value Chainsmentioning

confidence: 99%

South Korean first‐tier suppliers in apparel global value chains: Upgrading and labour implications in the Asian context

Kwon

Chung

Lee

2021

International Labour Review

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This article traces the historical development of apparel suppliers in the Republic of Korea, particularly the rise of first-tier suppliers (FTSs). Using the cases of two leading FTSs, the authors examine how they expanded their international presence, especially in Asia, to become large multinationals. Particular attention is paid to the development of these FTSs during the period following the global financial crisis of the late 2000s. This article investigates whether, having rapidly grown to become partners handling a complex business environment, they now occupy a strategic position in the reconfigured apparel global value chains. It also examines their responses to labour issues, considering what their upgrading implies for workers.

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The role of transnational first-tier suppliers in GVC governance

Cited by 19 publications

References 0 publications

Value capture by companies of different ownership, tier, size, and distance to market: A cross‐sectoral analysis

Value capture by companies of different ownership, tier, size, and distance to market: A cross‐sectoral analysis

The Future of Global Supply Chains in a Post-COVID-19 World

South Korean first‐tier suppliers in apparel global value chains: Upgrading and labour implications in the Asian context

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