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

Choksy, U. S., Sinkovics, N. and Sinkovics, R. R. (2017) Exploring the relationship between upgrading and capturing profits from GVC participation for disadvantaged suppliers in developing countries. Canadian Journal of Administrative Sciences, 34(4), pp. 356-386. (doi: 10.1002/cjas.1455)

Abstract

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.

• Item Type: Articles
• Additional Information: Financial support from the Economic and Social Research Council (ESRC), UK, who funded part of Rudolf Sinkovics’ time [grant number ES/J013234/1], is gratefully acknowledged.
• Keywords: upgrading functional upgrading position global value chains profit margins modernisation modernisation fonctionnelle chaînes de valeur mondiales marges de profit
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Sinkovics, Professor Rudolf and Sinkovics, Dr Noemi
• Authors: Choksy, U. S., Sinkovics, N., and Sinkovics, R. R.
• College/School: College of Social Sciences > Adam Smith Business School > Management
• Journal Name: Canadian Journal of Administrative Sciences
• Publisher: Wiley
• ISSN: 0825-0383
• ISSN (Online): 1936-4490
• Published Online: 02 November 2017
• Copyright Holders: Copyright © 2017 The Authors
• First Published: First published in Canadian Journal of Administrative Sciences 34(4): 356-386
• Publisher Policy: Reproduced under a Creative Commons licence