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Governance in Global Value Chains (2001)
| Venue: | IDS Bulletin Special Issue on The Value of Value Chains |
| Citations: | 426 - 26 self |
BibTeX
@INPROCEEDINGS{Gereffi01governancein,
author = {Gary Gereffi},
title = {Governance in Global Value Chains},
booktitle = {IDS Bulletin Special Issue on The Value of Value Chains},
year = {2001}
}
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Abstract
This article builds a theoretical framework to help explain governance patterns in global value chains. It draws on three streams of literature – transaction costs economics, production networks, and technological capability and firm-level learning – to identify three variables that play a large role in determining how global value chains are governed and change. These are: (1) the complexity of transactions, (2) the ability to codify transactions, and (3) the capabilities in the supply-base. The theory generates five types of global value chain governance – hierarchy, captive, relational, modular, and market – which range from high to low levels of explicit coordination and power asymmetry. The article highlights the dynamic and overlapping nature of global value chain governance through four brief industry case studies: apparel, bicycles, horticulture and electronics.
Keyphrases
global value chain explicit coordination global value chain governance theoretical framework global value chain governance hierarchy technological capability production network power asymmetry governance pattern large role overlapping nature low level literature transaction cost economics brief industry case study firm-level learning
