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: bicycles, apparel, horticulture and electronics

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The governance of global value chains

Transactions of the Institute of British Geographers

This article outlines a framework for the analysis of economic integration and its relation to the asymmetries of economic and social development. Consciously breaking with state-centric forms of social science, it argues for a research agenda that is more adequate to the exigencies and consequences of globalization than has traditionally been the case in 'development studies'. Drawing on earlier attempts to analyse the cross-border activities of firms, their spatial configurations and developmental consequences, the article moves beyond these by proposing the framework of the 'global production network' (GPN). It explores the conceptual elements involved in this framework in some detail and then turns to sketch a stylized example of a GPN. The article concludes with a brief indication of the benefits that could be delivered by research informed by GPN analysis.

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Global production networks and the analysis of economic development

Experimental Neurology By Prof Paul Glees Pp xii + 532 (Oxford: Clarendon Press; London: Oxford University Press, 1961) 75s net

The Nervous System

Understanding and conceptualizing the complexities of the contemporary global economy is a challenging but vitally important task. In this article, we critically evaluate the potential of one interpretive framework—the global production networks (GPN) perspective—for analysing the global economy and its impacts on territorial development. After situating the approach in relation to other cognate chain/network approaches, the article proceeds to review and evaluate a number of underdeveloped areas that need to be understood and incorporated more fully if the framework is to deliver on its early potential. The article concludes with a consideration of the key research issues facing work in this area.

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Global production networks: realizing the potential

Individuals, consumer groups, nation states and supra-national bodies increasingly have interrogated the ethics of particular production and consumption relations such as GM foods. Flowing from and bound up with these political concerns is the growing interest in the mutual dependence of sites of (for example) production, distribution, retailing, design, advertising, marketing and final consumption. Commodity Chains draws together contributions concerned with the production, circulation and consumption of commodities. Not only do these case study examples seek to transcend older understandings of production and consumption, but they also explicitly tap into wider public debate about the meanings, origins and biographies of commodities. Taking a geographical approach to the analysis of links between producers and consumers, focusing upon the ways in which these ties increasingly are stretched across spaces and places. Critical engagements with the ways in which these spaces and places affect the economies, cultures and politics of the connections between producers and consumers are threaded through each section.

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Geographies of Commodity Chains

Retailers, knowledges and changing commodity networks: the case of the cut flower trade

This paper engages critically with current ethical trading practice in the global cut flower trade, focusing on the specific case of Kenyan export production for European markets. Notions of governmentality are adopted in the analysis, in order to understand the rationalities and materialities that underpin the organizational geographies of business responsibility in this context, and serve to re-regulate the trading network. Mentalities of stakeholding and practices of auditing are shown to play prominent roles in this process. However, it is argued that regulatory contradictions associated with the audit economy place organizational limits on the effective practice of ethical trade.

Global commodity networks, ethical trade and governmentality: organizing business responsibility in the Kenyan cut flower industry

The dominant political-economic approaches to global trade flows known as global value chains and global production networks offer powerful insights into the coordination and location of globally stretched supply chains, in particular from global South to North. By way of both conceptual and empirical challenge, this paper highlights flows of end-of-life goods from the global North towards the global South. This involves the disassembly and destruction of goods to recover secondary resources for further rounds of commodity production. Global recycling networks take things of rubbish value (often spent or ‘end-of-life’ goods) and turn them back into resources in other places and production networks. They operate not through adding value, but by connecting different regimes of value. The paper does not set out a new conceptual framework, but asks what challenges the rekindling of value in used goods creates for global commodity chain analysis and what insights those approaches bring to looking at ‘waste’ flows. The examples of used clothing and end-of-life merchant ships are mobilised to illustrate the dynamics of global recycling networks and to challenge prevailing commodity chain approaches in three key areas – supply logics and crosscutting networks, value and materiality, and inter-firm governance. We argue that resource recovery engenders highly complex and brokered forms of governance that relate to practices of valuing heterogeneous materials and which contrast markedly with the modes of co-ordination dominated by ‘big capital typical of global production networks for consumer goods.

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Rethinking governance and value in commodity chains through global recycling networks

This article presents a theoretically informed consideration of the role of ethical campaigning in shaping organizational practices of power and authority in global production networks (GPNs). It does so through a focus on responsibility, and the ways in which ethical consumption is challenging the organization of global networks of supply. The arguments draw upon and develop two geographical approaches to understanding transnational trade, namely the GPN framework and the study of commodity knowledge. First, understandings of ethical consumption and circuitous commodity knowledge are mobilized to capture the practices of knowledge translation through which ethics are woven into particular forms of supply network coordination. Second, through a comparative case study of UK and US corporate retailers’ ethical trading programmes, notions of embeddedness advanced by the GPN framework are used and further developed to illuminate how the mobilization of ethics into different forms of network coordination involves organizational processes influenced by spaces of retail and consumption. It is argued from this that the influences of retail and consumption should be more fully incorporated into analytical frameworks for understanding GPNs.

Alex Hughes

Papers

Geographies of Commodity Chains

Retailers, knowledges and changing commodity networks: the case of the cut flower trade

Global commodity networks, ethical trade and governmentality: organizing business responsibility in the Kenyan cut flower industry

Rethinking governance and value in commodity chains through global recycling networks

Global production networks, ethical campaigning, and the embeddedness of responsible governance