Governance and power in global value chains
Timothy J. Sturgeon and
Mark P. Dallas
Chapter 6 in Handbook on Global Value Chains, 2019, pp 120-137 from Edward Elgar Publishing
Global value chain (GVC) analysis draws on international political economy, development studies, economic geography and economic sociology to provide insight into the transnational organization of economic activities and how these interact with local actors and institutions to shape development processes. GVCs in specific industries tend to be â€˜governedâ€™, more or less explicitly, by identifiable sets of â€˜lead firmsâ€™ that select suppliers, place orders, set requirements, and sometimes tightly coordinate the activities of suppliers and affiliated companies. This approach to GVC governance has provided rich insights into the emergence of spatially dispersed yet centrally coordinated production and distribution networks. As important as firm-level actors and their inter-relationships are, it is evident that actors, institutions, and norms external to the value chain also shape GVCs governance, for example through regulation, lobbying, civil society campaigns, and third-party standard setting. Institutional actors, including states and multilateral institutions shape GVCs by providing a mechanism for signatories to enforce, or not enforce, regulations and a platform for negotiating the terms of international trade agreements. Workers can also influence governance, especially when they are represented by labour unions with the ability to negotiate the terms of employment or call work stoppages at the level of the enterprise, industry, or broader economy. To provide an expanded analytical toolkit for this expanding field of inquiry, we offer a typology of power in GVCs along two dimensions: the arena of actors (dyads and collectives) and the precision of power (direct and diffuse). This yields four main forms of power: bargaining (dyadic and direct), demonstrative (dyadic and diffuse), institutional (collective and direct) and constitutive (collective and diffuse). This typology can help isolate various forms of power, and how they layer, evolve, consolidate and diffuse through distinct mechanisms and trajectories in view of better understanding how are GVCs governed, and with what distributional effects.
Keywords: Business and Management; Development Studies; Economics and Finance; Geography (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (13) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:18029_6
Ordering information: This item can be ordered from
Access Statistics for this chapter
More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().