Value chain

About: Value chain is a research topic. Over the lifetime, 7206 publications have been published within this topic receiving 224183 citations.

Why the World Suddenly Cares About Global Supply Chains

Abstract: The global value chain (GVC) concept has gained popularity as a way to analyze the international expansion and geographical fragmentation of contemporary supply chains and value creation and capture therein. It has been used broadly in academic publications that examine a wide range of global industries, and by many of the international organizations concerned with economic development. This note highlights some of the main features of GVC analysis and discusses the relationship between the core concepts of governance and upgrading. The key dynamics of contemporary global supply chains and their implications for global production and trade are illustrated by: (1) the consolidation of global value chains and the new geography of value creation and capture, with an emphasis on China; (2) the key roles of global supermarkets and private standards in agri-food supply chains; and (3) how the recent economic crisis contributes to shifting end markets and the regionalization of value chains. It concludes with a discussion of the future direction of GVC analysis and a potential collaboration with supply chain researchers.

Organizing the Global Value Chain

Abstract: We develop a property-rights model of the firm in which production entails a continuum of uniquely sequenced stages. In each stage, a final-good producer contracts with a distinct supplier for the procurement of a customized stage-specific component. Our model yields a sharp characterization for the optimal allocation of ownership rights along the value chain. We show that the incentive to integrate suppliers varies systematically with the relative position (upstream versus downstream) at which the supplier enters the production line. Furthermore, the nature of the relationship between integration and "downstreamness" depends crucially on the elasticity of demand faced by the final-good producer. Our model readily accommodates various sources of asymmetry across final-good producers and across suppliers within a production line, and we show how it can be taken to the data with international trade statistics. Combining data from the U.S. Census Bureau's Related Party Trade database and estimates of U.S. import demand elasticities from Broda and Weinstein (2006), we find empirical evidence broadly supportive of our key predictions. In the process, we develop two novel measures of the average position of an industry in the value chain, which we construct using U.S. Input-Output Tables.

Relationship between supply chain performance and degree of linkage among supplier, internal integration, and customer

Abstract: Purpose – The purpose of this paper is to present the relationship between supply chain linkages and supply chain performance (cost‐containment and reliability of supply chain partners).Design/methodology/approach – Multivariate regression models are developed in order to identify the characteristics of determinants of linkages in the supply chain stakeholders (suppliers, internal stakeholders and customers). The survey was administered to individuals identified from a list of US executive officers, directors, presidents, or vice presidents. Among four hundred respondents, 122 were considered as valid from those who practice supply chain management for their business operations.Findings – Internal integration is the most important contributor to cost‐containment while integration with the supplier is the best strategy to achieve supply chain reliable performance. Availability of electronic ordering systems for customers is an important strategy in cost‐containment. Fast and easy ordering is the best strat...