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

The present historical moment may seem a particularly inopportune time to review Bowling Alone, Robert Putnam's latest exploration of civic decline in America. After all, the outpouring of volunteerism, solidarity, patriotism, and self-sacrifice displayed by Americans in the wake of the September 11 terrorist attacks appears to fly in the face of Putnam's central argument: that \"social capital\" -defined as \"social networks and the norms of reciprocity and trustworthiness that arise from them\" (p. 19)'has declined to dangerously low levels in America over the last three decades. However, Putnam is not fazed in the least by the recent effusion of solidarity. Quite the contrary, he sees in it the potential to \"reverse what has been a 30to 40-year steady decline in most measures of connectedness or community.\"' As an example of how the current \"war on terrorism\" could generate a durable civic renewal, Putnam points to the burst in civic practices that occurred during and after World War II, which he says \"permanently marked\" the generation that lived through it and had a \"terrific effect on American public life over the last half-century.\" 3 If Americans can follow this example and channel their current civic

Bowling alone: The collapse and revival of American community

The Rise of the Creative Class

Transactions of the Institute of British Geographers

This paper sets out to explore contexts for entrepreneurship, illustrating how a contextualized view of entrepreneurship contributes to our understanding of the phenomenon. There is growing recognition in entrepreneurship research that economic behavior can be better understood within its historical, temporal, institutional, spatial, and social contexts, as these contexts provide individuals with opportunities and set boundaries for their actions. Context can be an asset and a liability for the nature and extent of entrepreneurship, but entrepreneurship can also impact contexts. The paper argues that context is important for understanding when, how, and why entrepreneurship happens and who becomes involved. Exploring the multiplicity of contexts and their impact on entrepreneurship, it identifies challenges researchers face in contextualizing entrepreneurship theory and offers possible ways forward.

https://papers.ssrn.com/sol3/Delivery.cfm/j_1540-6520_2010_00427_x_wml.pdf?abstractid=1784106&mirid=2

Contextualizing Entrepreneurship—Conceptual Challenges and Ways Forward:

The authors investigate the contemporary restructuring of the mobile-telecommunications industry with the use of a global production networks (GPNs) perspective. After a brief conceptual discussion of GPN, standard setting and embeddedness, their analysis proceeds in four further stages. First, they consider how technological change has driven the development of complex mobile telecommunications GPNs in a sector previously characterised by relatively linear and simple value chains. Second, they show how processes of deregulation and privatisation over the past two decades have enabled the internationalisation of mobile telecommunications provision. Third, they explore the delicate power balance between embedded state and corporate actors in telecommunications GPNs through a consideration of the changing bases of standard setting in the industry. Despite ongoing processes of globalisation, the continuing importance of national policies and strategies is clear. Fourth, they demonstrate the continuing import...

Making connections: global production networks, standards and embeddedness in the mobile telecommunications industry

Mucolipidosis type IV (MLIV) is an autosomal recessive lysosomal storage disorder often characterized by severe neurodevelopmental abnormalities and neuro-retinal degeneration. Mutations in the TRPML1 gene are causative for MLIV. We used lead optimization strategies to identify--and MLIV patient fibroblasts to test--small-molecule activators for their potential to restore TRPML1 mutant channel function. Using the whole-lysosome planar patch-clamp technique, we found that activation of MLIV mutant isoforms by the endogenous ligand PI(3,5)P2 is strongly reduced, while activity can be increased using synthetic ligands. We also found that the F465L mutation renders TRPML1 pH insensitive, while F408Δ impacts synthetic ligand binding. Trafficking defects and accumulation of zinc in lysosomes of MLIV mutant fibroblasts can be rescued by the small molecule treatment. Collectively, our data demonstrate that small molecules can be used to restore channel function and rescue disease associated abnormalities in patient cells expressing specific MLIV point mutations.

/pdf/a-small-molecule-restores-function-to-trpml1-mutant-isoforms-11grpo1y4g.pdf

A small molecule restores function to TRPML1 mutant isoforms responsible for mucolipidosis type IV

‘Not another book about networks!’ With these words Grahame Thompson (2003, p. 1) begins his book about the logic and limits of network forms of organization, before moving on to explain his ironic...

Governance, value chains and networks: an afterword

This article offers a sympathetic critique of recent attempts to forge a dialogue between Global Commodity Chain (GCC) and World City Network (WCN) approaches to global economic change. While broadly supportive of the endeavour, we make three observations about this ongoing project. First, we question the utility of emphasizing the common roots of these approaches in World Systems Theory given that both have subsequently moved into new epistemological terrain and, additionally, that the language of core and periphery seems ever less pertinent to global economic realities. Second, we seek to highlight the potential dangers of essentializing the global system as one that is primarily shaped by certain kinds of connections – namely the intra-firm relationships of advanced producer service firms – between certain kinds of cities – namely the leading tiers of global cities. Third, we point to the need to expand the interpretations of relationality within global networks to include a wider variety of actors, particularly beyond the corporate realm, and to explore the dynamic power relations between those actors. We also discuss the methodological challenges of expanding the purview of research in this way. This commentary has been stimulated by the articles in the special issue of Global Networks on ‘World City Networks and Global Commodity Chains’.

Making connections: Global production networks and world city networks

Recent literature concerning regional development has placed significant emphasis on local institutional structures and their capacity to ‘hold down’ the global. Conversely, work on inter-firm networks – such as the global commodity chain approach – has highlighted the significance of the organizational structures of global firms’ production systems and their relation to industrial upgrading. In this paper, drawing upon a global production networks perspective, we conceptualize the connections between ‘globalizing’ processes, as embodied in the production networks of transnational corporations, and regional development in specific territorial formations. We delimit the ‘strategic coupling’ of the global production networks of firms and regional economies which ultimately drives regional development through the processes of value creation, enhancement and capture. In doing so, we stress the multi-scalarity of the forces and processes underlying regional development, and thus do not privilege one particular geographical scale. By way of illustration, we introduce an example drawn from recent research into global production networks in East Asia and Europe. The example profiles the investments of car manufacturer BMW in Eastern Bavaria, Germany and Rayong, Thailand, and considers their implications for regional development.

Martin Hess

Papers

Making connections: global production networks, standards and embeddedness in the mobile telecommunications industry

A small molecule restores function to TRPML1 mutant isoforms responsible for mucolipidosis type IV

Governance, value chains and networks: an afterword

Making connections: Global production networks and world city networks

Globalizing regional development: a global production networks perspective