Handbook on Global Value Chains
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Handbook on Global Value Chains

Edited by Stefano Ponte, Gary Gereffi and Gale Raj-Reichert

Global value chains (GVCs) are a key feature of the global economy in the 21st century. They show how international investment and trade create cross-border production networks that link countries, firms and workers around the globe. This Handbook describes how GVCs arise and vary across industries and countries, and how they have evolved over time in response to economic and political forces. With chapters written by leading interdisciplinary scholars, the Handbook unpacks the key concepts of GVC governance and upgrading, and explores policy implications for advanced and developing economies alike.
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Chapter 27: Supply chain management and global value chains

Ruggero Golini and Matteo Kalchschmidt


Global value chain (GVC) analysis and supply chain management (SCM) research have been following parallel paths of development. However, they share the same premises: the fragmented and global nature of production chains and the importance of interaction across actors for innovation and competitiveness. While GVC analysis follows a more holistic and global approach, SCM provides a more nuanced view on company strategies and the processes that ultimately shape governance and upgrading in GVCs. Consequently, this chapter first establishes the common ground between the two disciplines and then presents how selected concepts from these different branches of literature can be combined, with a special focus on how to better understand the concept of upgrading. The chapter ends with a discussion of potential areas of joint investigation for SCM and GVC scholars, including the impact of new technologies and platforms, the dynamics of reshoring and relocation, and the evaluation of risks in complex and multi-country supply chains.

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