Platforms and firm capabilities: a study of emerging global value chains
Ding Ke
No 432, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)
Abstract:
This paper discusses globalization’s impact on production and distribution systems in emerging economies. On one hand, globalization has resulted in an increasing number of multinational corporations to adopt a platform strategy for their customers in emerging markets. On the other hand, developing countries have witnessed the integration of an increasing number of traditional marketplaces into a powerful distribution system, characterized as a specialized market system. Consequently, an unique industrial organization has developed in emerging economies, regarded as emerging global value chains (EGVCs). They comprise a large number of small firms together with a small number of large platform providers and display the "market" type general governance patterns. Firms in EGVCs are more likely to realize functional upgrading and grow into strong lead firms.
Keywords: Developing countries; International economic relations; Globalization; Platform; Network effect; Emerging economies; Value chain governance (search for similar items in EconPapers)
JEL-codes: L63 O14 O17 (search for similar items in EconPapers)
Date: 2013-11-01
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 432. 2013-11-01
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