Upgrading in Global Value Chains: Analytical Framework

Seishi Kimura

Chapter 4 in The Challenges of Late Industrialization, 2007, pp 79-110 from Palgrave Macmillan

Abstract: Abstract This chapter develops the analytical framework for understanding how and why a latecomer firm in a global industry – particularly, the commercial aircraft industry – could upgrade its status as a dependent firm in a GVC. In the preceding chapter, we tried to show that the recent global business transformations have opened the ‘window of opportunity’ for the upgrading firm-based late industrialization (FLI) strategy. More specifically, by taking advantage of the globalization of the intermediate goods market, a latecomer firm might be able to incrementally enlarge the scale and scope of its supplier activities. In so doing, the latecomer firm could in turn generate and capture a higher value-added role and consequentially stronger bargaining power within the GVC, and ultimately to contribute to the overall industrial development at national level – that is, achieving FLI.

Keywords: Institutional Setting; Opportunistic Behaviour; Lead Firm; Industrial Network; Global Value Chain (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-62763-5_4

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DOI: 10.1057/9780230627635_4

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