The role of subsidiaries in Global Value Chains (GVCs): An institutional voids perspective on LVC upgrading and integration

Salma Soliman, Marina Papanastassiou and Ayse Saka-Helmhout

Journal of International Management, 2023, vol. 29, issue 2

Abstract: We explore the process through which MNE subsidiaries engage and retain a critical mass of small suppliers in Global Value Chains (GVCs) while addressing institutional voids in emerging markets. Using evidence from an interpretive inductive longitudinal case study in agribusiness, we draw on the GVC and institutional voids literatures to: (1) extend the GVC literature by offering a subsidiary-focused view of GVCs; and (2) demonstrate the dynamic process of void engagement through complementary institutional bridging activities. Our temporal sequencing of subsidiary institutional agency in response to different modalities of voids demonstrates a constellation of bridging activities that results from a dynamic interplay between voids and practices.

Keywords: Global Value Chain; Institutional voids; MNE subsidiaries; Small suppliers; Emerging markets; Institutional bridging (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1016/j.intman.2022.101003

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