When do value chains go global? A theory of the spatialization of global value chains

In this article, I synthesize and extend the theoretical literature on global commodity chain (GCC) and global value chain (GVC) governance to generate a theory of the ‘globalness’ of value chains and the spatialization of value chain linkages. Drawing from the original GCC dichotomy of buyer/producer‐driven commodity chains, I emphasize the height of entry barriers to manufacturing and supplier capability differentials across the North–South divide as determinants of the amount and geographic extent of global offshoring behaviour. Using a novel empirical approach to the measurement of global offshoring behaviour at the global industry level, the article shows that the original GCC governance scheme successfully predicts the levels, rates and timing of global production fragmentation across three networked industries. Combining the original GCC governance scheme with the more recent GVC governance types, the theory leads to predictions about the specific types of GVC linkages that might occur given the drivenness of a chain and the geographical location of lead firms and their suppliers. I conclude by drawing out the theory's implications for our understanding of the link between value chain formation and economic development in the global South and suggesting areas for future research.     

Global networks and the reorganization of production in the clothing industry of post‐socialist Ukraine

In this article we examine how processes of globalization and the nature of emerging inter‐firm relationships influence the organization of production in a post‐socialist region, using the case of the clothing industry in Transcarpathia, Western Ukraine. We combine insights from two perspectives, the global commodity chain approach and the new regionalism. The focus on both institutional setting and interfirm relationships is essential in regions undergoing rapid change. In the article we also use Burt's concept of structural holes and the idea of a competence‐difficulty gap to examine the nature of relationships within networks of firms, arguing that global integration can be viewed as a bridging process. The evidence comes from surveys and fieldwork conducted between 1997 and 2004, providing a longitudinal analysis of the same firms. Among other findings, we show that the difficulty of doing business locally may make relationships more stable. With respect to industrial structure, international subcontracting and joint‐venture arrangements enable technological modernization in assembly and parts of preassembly, but also result in the demise of high‐value added competences.     

Botswana’s beef global commodity chain: Explaining the resistance to change

In an era of increasing global agricultural trade, many firms and farms seek to upgrade their agricultural commodity chains to become better integrated into global markets. Utilizing a global commodity chain (GCC) approach, this analysis unravels the challenges to and the potential consequences of upgrading Botswana’s beef commodity chain. Specifically, the argument is made that political, economic, and cultural influences in the GCC contribute to distinctive driving factors that have prevented upgrading or niche marketing of Botswana’s beef. In comparison to two other countries in the region (South Africa and Namibia) that have upgraded their beef GCCs, Botswana’s producer driven GCC has not upgraded due in large part to the existence of three disparate producer groups: commercial feedlot, commercial extensive grazing, and communal producers. The diverse expectations, norms, daily practices and identities of the various actors in Botswana’s beef GCC contribute to contradictory policies and practices. This study reveals that cultural differences in a GCC can affect the capacity of the actors to upgrade the chain. Although culture does not drive or determine the action of actors in a commodity chain, it does shape the meanings associated with particular commodities and influences the ways in which actors think and behave. Moreover, if upgrading strategies are culturally alien or alienating to a significant segment of actors within the chain, upgrading efforts will be resisted by those alienated actors.     

Bread in the Economy of Qualities: The Creative Reconstitution of the Canada‐UK Commodity Chain for Wheat

This article traces the creative reconstitution of the Canada‐UK wheat‐bread commodity chain since the 1990s. In the mid‐1990s, the Canadian Wheat Board (CWB) and a British bakery, Warburtons, pioneered an innovative identity‐preserved sourcing relationship that ties contracted prairie wheat growers to consumers of premium bread in the United Kingdom. The CWB‐Warburtons contract is emblematic of the increasing importance of quality claims, traceability, and private standards in the reorganization of agrifood supply chains. Yet the case is unique in two important ways. First, in the context of supermarket leadership in the coordination of quality chains, the program was established by two unlikely actors—a state marketing agency and a branded food manufacturer. Second, the quality chain centers on a semifresh, manufactured food staple (bread), whereas most quality chains are organized around fresh produce, meat, and dairy products. The CWB‐Warburtons story thus provides evidence of diversity and complexity in the shift toward the supermarket‐driven “economy of qualities.” I interpret these changes by locating them in broader processes of historical change. Led by the CWB and Warburtons, the shift toward quality in commodity chains for wheat bread is reconfiguring relations among key social actors in the prairie wheat economy as well as the UK bread market.     

Networks,firms and upgrading within the blue‐jeans industry: evidence from Turkey

Abstract Since the late 1980s, industry characteristics, country‐specific contingencies and international conditions have come together and turned Turkey into a major exporter of jeans. It now has a 6.5 per cent share of the world's market. In this article, I explore this transformation and point out that it has created, especially in the 1990s, significant upgrading opportunities for Turkish firms. A large number of Turkish manufacturing firms are now full‐package contractors for a diversified list of brand‐name jeans. Some of these manufacturers are also experimenting with functional upgrading by developing their own brands and selling them abroad. Local firms, despite their subordinate position in the value chain, can go beyond low value‐added manufacturing and encroach on the core competencies of lead firms.     

Oligopolistic suppliers,symbiotic value chains and workers' bargaining power: labour contestation in South China at an ascendant global footwear firm

In this article, I analyse changes in the power relationship between lead firms, manufacturers and workers by examining a strike that took place in South China in 2014 among workers at the Taiwanese footwear giant, Yue Yuen. In the process, I demonstrate that there is a link between increased labour costs, capital consolidation and greater value capture at the bottom of the global supply chain. I argue that footwear value chains are seeing a falling level of monopsony power and the emergence of enormous oligopolistic suppliers, which are transforming the power imbalances of global supply chains towards a more mutually dependent ‘buyer–producer symbiosis’. The Yue Yuen strike shows a maturing industrial working class, facing pressures on social reproduction in China, adapting its bargaining strategies vis‐à‐vis the developmental state. Influxes of profit raise the ceiling for what can be demanded of employers, stimulating those same employers to pursue more aggressive means of holding onto their profits. The example of the Yue Yuen strike is an indicator of what are fundamental changes in the production process, dynamics within the value chain, and power and agency of workers in labour‐intensive production. The strike demonstrates that consolidation is playing a decisive role in shaping the power relationship between domestic manufacturers and transnational brands, which, in turn, is directly affecting the bargaining power of workers.     

Renegotiating a Timber Commodity Chain: Lessons from Indonesia on the Political Construction of Global Commodity Chains

This paper shows how political strategies and negotiations influence the construction of the market linkages that form global commodity chains. It provides an account of how an oligopoly of timber-producing firms in the peripheral nation of Indonesia came to dominate the production and export of processed tropical plywood from 1985 to 1998. The oligopoly forged alliances with the state to gain domestic control over producers of the raw material and negotiated an external alliance with Japanese importers to penetrate that core market. Exposing processes of political influence can enrich global commodity chain analysis of market processes in the global political economy.     

Integrating world cities into production networks: the case of port cities

In this article we analyse the location patterns of firms that provide specialized advanced producer services (APS) to international commodity chains that move through seaports. Such activities can take place in world cities or in port cities. The analysis of APS location patterns in port cities provides a good opportunity to integrate the study of world cities into the framework of Global Production Networks. Based upon our empirical findings, we conclude that while port-related APS activities predominantly follow the world city hierarchy, a number of port cities stand out because they act as nodes in global commodity flows and as centres of advanced services related to shipping and port activities. Based on these empirical findings we address future avenues of research.     

Rethinking the informal and criminal economy from a global commodity chain perspective: China–Paraguay–Brazil

The criminalization of Chinese counterfeit goods in the global market calls for a fresh approach to understanding well‐established binary distinctions such as legal/illegal, licit/illicit, and formal/informal. Based on a multi‐sited ethnography in China, Paraguay and Brazil, I examine five commodity chains of two products – toys and watches – and their regulatory frameworks in terms of merchandise status, business formality, and international transaction legality. Certain merchandise produced in the formal economy has no legal definition a priori, but legal variability starts when goods leave the factory. A great interchangeability of a product's legal status existed along its chain according to governance structures, legal cultures, geographical domains, and power relations. These findings suggest that the illicit is a relational category and the so‐called criminal economy is not a segmented market, but part of a global process integrated with formality and marked by great legal variability within and between nations.     

Global value chains in international knowledge work: networks,stratifications and labour markets

In this article, I aim to cast light on the arguably indeterminate phenomenon of the global labour market (GLM) by placing the focus on an industry that has sometimes been perceived as epitomizing homogeneity and ‘world flatness’ in its deployment of geographically dispersed knowledge workers, that of international software development. Engaging in a sanguine analysis of this industry with reference to an empirical study of outsourcing to Ukraine it is revealed that labour markets servicing ICT (Information and communication technology) are subject to deep, if fluctuating, social stratifications. With reference to the notion of the global value chain (GVC), 1 1 ¹GVC analysis focuses on the governance patterns and relational dynamics between lead and supplier firms at the sectoral level. The GVC and its predecessor, the global commodity chain (GCC) focus on the inter‐firm linkages and especially power relations between different actors (Feuerstein 2013). The similar concept of global production network (GPN) concerns the broader set of relations of power, positionality and value capture between all relevant firm and extra firm actors within a network (Thompson 2013). For this study on sourcing in the global software industry, the term GVC will be utilized throughout.
the significance of factors such as knowledge, language, citizenship and age as labour market differentiators for knowledge work is brought to the fore.     

Upgrading,uneven development,and jobs in the North American apparel industry

In this article we examine the developmental consequences of globalization at multiple scales, using a commodity chains framework to investigate the case of the North American apparel industry. In the first section we outline the apparel commodity chain and offer a brief typology of its lead firms. In the second section we discuss the concept of industrial upgrading and describe several main export roles in the global apparel industry. In the third section we focus on the regional dynamics resulting from the North American Free Trade Agreement (NAFTA). We contrast the Mexican experience with that of countries in the Caribbean Basin to show the impact of distinct trade policies on export‐oriented development. We argue that NAFTA is creating upgrading opportunities for some Mexican firms to move from the low value‐added export‐oriented assembly (or maquila) model to full‐package production. In the fourth section we explore the unevenness of upgrading dynamics through a comparison of two blue jeans manufacturing clusters in the United States and Mexico: El Paso and Torreon. Our conclusions about upgrading and uneven development in the North American apparel industry emphasize the importance of local, national and regional institutional contexts in shaping inter‐firm networks and their development impact.     

Expanding our sociolinguistic horizons? Geographical thinking and the articulatory potential of commodity chain analysis

Conceptual linearity and analytic parochialism (aka focus) can make it more difficult for sociolinguists or discourse analysts to apprehend the far‐reaching, exploitative ways inequality is nowadays produced. A suitably material‐cum‐materialist class critique certainly entails empirical and phenomenological worlds flagged by, for example, multi‐sited ethnographies but otherwise side‐lined as merely “extra‐situational” in much talk/text‐directed scholarship. I propose we think more geographically by properly engaging spatiality à la Harvey (1990) and especially the radical politics of simultaneity (Massey, 2005)—the literal, “right‐now” connectedness of places and people. To this end, and allied with deepening interest in political economy, I combine the principles of articulation theory with the procedures of commodity chain analysis for picking apart an epitomic, contemporary manifestation of extreme privilege: the business‐class meal. The proposed discourse‐centred commodity chain analysis offers an ecumenical but systematic framework for tracking how commodity fetishism is actually and discursively accomplished (or not) across dispersed voices, stories, and social meanings.     

Semiosis,interaction and ethnicity in urban Java1

This paper teases out the interdiscursive relations between local and perduring signs of personhood and their recontextualization in situated talk. In doing so, I aim to provide further evidence of the utility of incorporating ethnography, linguistic anthropological work on semiotics and work on face‐to‐face interaction. My empirical focus is on two consecutive men's meetings that occurred in an urban Indonesian milieu. In particular, I draw upon work on semiotic register formation and processes of social identification to flesh out how signs from different temporal‐spatial scales figure in the social identification of a non‐present neighbor as deviant and Chinese. By taking an interactional view I also attempt to fill a gap in the scholarship on such inter‐ethnic relations in Indonesia, which has hitherto primarily been historical in nature.     

Tsotsitaal,global culture and local style: identity and recontextualisation in twenty‐first century South African townships

Tsotsitaal is a linguistic phenomenon which is inseparable from a style adopted by many youth living in urban townships in South Africa. The style is signalled by the unique and innovative lexicon of Tsotsitaal, and additionally indicated by clothing and other identity markers. Features of the style are ‘urban‐ness’, consumerism (in terms of brand names) and cultural iconography, such as music and sports. While many of these items are influenced by, or even drawn from, global cultures (particularly in the diaspora), they are transformed into uniquely South African cultural currency by a process of recontextualisation in township spaces and between individuals. There has been a dialogue between the Tsotsitaal style and the global since at least the 1940s, which should put to rest fears that increased global influence since the end of apartheid will diminish the integrity of local South African cultures.     

Social upgrading in globalized production: The case of the textile and clothing industry

Vertical specialization generated by the international fragmentation of production within global networks is driven not only by comparative advantage, but also by the locational decisions of lead firms which determine the role and bargaining power of local producers in their value chain. This study examines the consequences of such specialization in textiles and clothing for 26 labour‐abundant countries from 1990 to 2007. Fixed effects regressions based on panel data reveal that the industry does not always reap the benefits of the resulting international trade integration. Rather, the authors observe a negative relationship between vertical specialization and relative real wages in the textile and clothing industry.     

Catching‐up or Leapfrogging in the Indian IT Service Sector: Windows of Opportunity,Path‐creating,and Moving up the Value Chain

Indian IT service firms are successfully competing with world leaders and research on the industry is emerging. Providing analysis at firm rather than industry level, this article identifies the windows of opportunity open to Indian firms, with the following findings: (i) the catching‐up process by Indian IT firms can be classified as a three‐stage ‘body shopping–offshoring–global delivery model’, comparable with the three steps in original equipment, own‐design and own‐brand manufacturing; (ii) the window of opportunity for Indian firms was primarily the techno‐economic paradigm shift, and secondarily the government's regulation and support of the industry; and (iii) Indian firms initially partially re‐invented their own path by offshoring and created their own global delivery model, gradually moving to higher value‐added services.     

‘Writing’ aesth‐ethics on the child's body: Developing maternal subjectivities through clothing our children

What could we learn from the ‘aesth‐ethic’ practices of clothing children? The dual focus of this article is to analyse the everyday clothing of children as well as the development of maternal subjectivities as relevant to discussions of aesthetic labour in the field of organization studies. Drawing upon the literatures on aesthetic labour and maternal subjectivities in the field of organization studies, we develop a fine‐grained understanding of the relatively intense and effortful maternal labours that clothing our children encapsulates. Methodologically, we use autoethnographic diary notes combined with feminist ‘memory work’ to analyse clothing as an affectual form of storytelling or ‘writing’ on the child's body that (re)produces certain sociocultural understandings about mothering, sustainability and childhood(s) in a Nordic context embraced by western consumerism. By considering the limitations of the approach taken to drawing wider conclusions about motherhoods, identity construction and clothing, this article advances our understanding of the development of particular middle‐class maternal subjectivities seeking to problematize mass consumerism through childrenswear, and how idea(l)s concerning gender and childhood(s) are being (re)produced in and through clothing.     

Fair Trade: Social regulation in global food markets

This article analyzes the theoretical and empirical parameters of social regulation in contemporary global food markets, focusing on the rapidly expanding Fair Trade initiative. Fair Trade seeks to transform North/South relations by fostering ethical consumption, producer empowerment, and certified commodity sales. This initiative joins an array of labor and environmental standard and certification systems which are often conceptualized as “private regulations” since they depend on the voluntary participation of firms. I argue that these new institutional arrangements are better understood as “social regulations” since they operate beyond the traditional bounds of private and public (corporate and state) domains and are animated by individual and collective actors. In the case of Fair Trade, I illuminate how relational and civic values are embedded in economic practices and institutions and how new quality assessments are promoted as much by social movement groups and loosely aligned consumers and producers as they are by market forces. This initiative's recent commercial success has deepened price competition and buyer control and eroded its traditional peasant base, yet it has simultaneously created new openings for progressive politics. The study reveals the complex and contested nature of social regulation in the global food market as movement efforts move beyond critique to institution building.     

How manufacturing industries connect cities across the world: extending research on ‘multiple globalizations’

In this article, I concentrate on a macro‐level analysis of inter‐urban linkages in a ‘world city network’. Empirical research on the formation of a world city network has mostly concentrated on global service providers. Yet, globally operating manufacturing firms also choose distinct urban regions throughout the world as locational anchoring points. In this article, using social network analysis, I present the first global‐scale analysis of how manufacturing firms connected cities across the world (in 2010). To detect the differing ‘sectoral profiles’ and nodal centralities of cities functioning as geographical hubs of transnational production networks, it is necessary to analyse the network structure of distinct industrial subsectors within the global urban system. The data collected for analysis cover 120 top global firms from three manufacturing subsectors, of which two are analysed in more detail than the third. I then compare the nodal centralities of cities included in these subsectors' global networks with the GaWC research on the producer services sector that has been at the centre of previous analyses of the world city network. The comparison reveals the cities' differing positioning within ‘multiple globalizations’. The aim of the article is to extend research on world city networks.     

Embedding Local Places in Global Spaces: Geographical Indications as a Territorial Development Strategy

Geographical indications (GIs) are place‐based names that convey the geographical origin, as well as the cultural and historical identity, of agricultural products. GIs are unique, in that they provide a means of ensuring that control over production and sales of a product stays within a local area, but at the same time they make use of extralocal markets. Although control over GIs largely rests with local actors, GIs are nested in wider regional, national, and international networks; and the passage from local to extralocal markets introduces new costs and benefits and new relations of power into the supply chain. The degree to which GI protection spurs development and protects local environmental and cultural resources depends on the structure of the GI legislation and on the territorial context in which protection is embedded. Using a commodity‐chains approach, I compare two GI production systems, tequila in Mexico and Comté cheese in France, in order to develop a theory of the factors that contribute to more sustainable, equitable GI production systems. I argue that three key differences in the design of the GI schemes help to explain the varying effects of the two cases: (1) the manner in which supply‐chain actors define quality, (2) the way that the GI valorizes the terroir of the region, and (3) the strength and cohesion that the collective organizing body exhibits. Moreover, the institutional and political context in which GI supply chains “touch down” plays a critical role. Contrary to a conceptualization of GIs as compatible with a purely market‐oriented model, my comparison of these two cases indicates that some level of state involvement, in order to level the playing field and empower small farmers, is a necessary, although not sufficient, precondition for successful and sustainable GIs.