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From servant to master: Power repositioning of emerging-market companies in global value chains

Pavida Pananond ()
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Pavida Pananond: Department of International Business, Logistics and Transport, Thammasat Business School, Thammasat University

Asian Business & Management, 2016, vol. 15, issue 4, 292-316

Abstract: Abstract In this article, I analyze how emerging-market firms upgrade their capabilities. Complementing the upgrading-through-technological capabilities view, I propose a power-repositioning argument, whereby local firms improve their power position through taking more control of the chain as part of the upgrading process. In particular, I argue that international expansion toward downstream activities enhances the power position of emerging-market supplier firms in globally integrated buyer-driven industries. This process enables local firms to break away from low-value-added positions within the value chain and exert more power within the governance structure of global value chains.

Keywords: global value chains; capability upgrading; internationalization process; emerging markets; supplier power (search for similar items in EconPapers)
Date: 2016
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