The global clothing production system: commodity chains and business networks

The global organization of the clothing industry has been the prime example of buyer‐driven commodity chains. However, previous empirical studies to substantiate Gereffi's assertion have been highly Western centric and predominantly based on the empirical evidence of American retailers and brand name companies. In this article I demonstrate that any clothing commodity chain has various influential factors, such as the national and global regulatory framework, the societal context of the leading firm, the fashion context of the products, as well as the actual brand ownership. Thus, the organization of clothing firms in the global economy can develop diverse intra‐sectoral commodity chain coordinations. Using a hypothetical clothing commodity chain as an example, I attempt to identify the individual commodity chains within which Indonesian clothing firms are embedded. Furthermore, I outline the ways in which Indonesian clothing firms were affected by the economic crisis of the late 1990s.     

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.     

Global decisions versus local realities: Sustainability standards,priorities and upgrading dynamics in agricultural global production networks

Voluntary sustainability standards (VSSs) in global production networks (GPNs) have grown significantly in prominence. Existing research largely assumed that VSSs create linear upgrading outcomes for all GPN actors and has studied VSSs from the point of adoption in the GPNs, rather than a broader range of stages in their lifecycle. To address these limitations, and building on literature around power and agency in GPNs, we develop the constellation of priorities (CoP) model to unpack the diverse and often diverging boardroom (Northern lead firm) and local (Southern supplier) priorities involved in such standards. Through in-depth fieldwork on horticulture in Kenya and cocoa in Nicaragua across the VSS lifecycle, we find significant divergences in priorities between farmer groups in both countries and lead firms in the UK and Germany. We demonstrate analytically and empirically that diverging priorities coupled with power asymmetries produced contestations, leading to simultaneous economic and environmental downgrading, and social upgrading.     

COSTLY EXTERNAL FINANCE AND INVESTMENT EFFICIENCY IN A MARKET EQUILIBRIUM MODEL

The corporate finance literature suggests that a financially constrained firm invests less than an identical unconstrained firm. This does not imply that financial frictions cause firms to invest less than in a frictionless economy. When firms compete for investment funds, an increase in financial frictions can lead individual firms to increase their investment levels. A greater than the frictionless level of investment is likely in low-productivity firms, in cash-rich firms, and in firms with cheap external capital. Government programs that make capital cheaper for small firms may lead to lower levels of investment for all firms and decrease efficiency (JEL O16, E22, E44, G20)     

Strategic coupling,cross-scalar tension and local upgrading in the globalizing automotive industry in Guangzhou,China

This paper examines how latecomer firms manage to achieve industrial upgrading through strategic coupling with global lead firms in automotive production networks. Drawing upon the example of the Guangzhou Automotive Corporation in southern China, this paper theorizes ‘cross-scalar tension’ as a key factor to explain why the four cases of strategic coupling between lead firms, the same domestic firm and state ended in different results, from decoupling to a sustainable coupling with local upgrading. This paper contributes to the pertinent literature by demonstrating that cross-scalar tension is inherent to the nature of global production networks, and unreconciled tension concerning different corporate strategies on technological transfer, localization and product development could lead to decoupling. Importantly, good coordination and matching on corporate strategies between lead and domestic firms could relieve cross-scalar tensions, thus fostering local industrial upgrading and sustainable strategic coupling.     

Social upgrading and cooperative corporate social responsibility in global value chains: the case of Fairphone in China

In this article, we explore how a lead firm's strategy for corporate social responsibility influences the social upgrading of a supplier in a global value chain. Based on a single case study approach, we investigate the interaction between Dutch smartphone producer Fairphone and its Chinese supplier Guohong. On the one hand, the case illustrates how a cooperative approach to corporate social responsibility can lead to progress in suppliers' social upgrading. In particular, we highlight the role of a so‐called workers' welfare fund as a mechanism not only for improving measurable labour standards but also for enabling rights. On the other hand, the case demonstrates how the limited production and technological capabilities of the suppliers, a competitive market environment and lead firms' limited strategic access to the supply chain might constrain the extent of social upgrading through a cooperative approach towards corporate social responsibility in a global value chain.     

Understanding labour processes in global production networks: a case study of the football industry in Pakistan

ABSTRACT

Over the last few decades, the changing nature of global production and distribution processes has raised a number of critical questions regarding work and employment relations. Presenting a qualitative case study of the football industry in Pakistan as an example of the general mechanism of the social relations of re/production in a global system of industrial organization, this research highlights how and under what conditions informal workers are embedded in extended global production networks. By drawing on the integrated conceptual framework of the global production network (GPN) and labour process theory (LPT), this research sheds light on the working conditions and living realities of informal workers. A potential contribution of this paper is to extend the horizon of production network theory by analysing the work and employment conditions of informal workers, which are absent in existing discussions of these conceptual frameworks.     

VOTING IN FIRMS: THE ROLE OF AGENDA CONTROL, SIZE AND VOTER HOMOGENEITY

Voting is a common feature of most firms. Unrestricted voting, however, can lead to unstable decision making. We find that firms make tradeoffs among collective decision making, production scale, firm structure, and voter characteristics that are consistent with efforts to economize on the costs of voting. Firm responses include agenda control, restrictions to obtain a homogeneous voting population, and limits on firm size. We consider three long-surviving producer cooperatives, representing extreme cases of collective decision making, and find that their organization is sensitive to the costs of voting and to the employment of mechanisms to constrain those costs.     

Reconsidering the role of the digital in global production networks

Global production networks (GPNs) have become a key framework in conceptualizing linkages, power and structure in globalized production. However, this framework has been less successful in integrating the influence of digital information and ICTs in production, and this problematic in a world where relationships and power are increasingly mediated by digital information flows and resources. We thus look to adapt the GPN framework to allow more substantive analysis of ‘the digital’. Primarily, this is done through a theoretical analysis of the three core categories of the GPN framework – embeddedness, value and networks – to highlight how these categories can better integrate a more dynamic and contested conceptualization of the digital. Illustrations from research on the digitalization of tea sector GPNs in East Africa highlight how these theoretical advances provide new insights on the digital and its expanding role in economic production.     

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.     

The duality of world cities and firms: comparing networks,hierarchies, and inequalities in the global economy

Much of the research on globalization conceives of the global economy as structured by networks among places, while separately organizational research has examined the role of networks among firms in structuring competition, collaboration, and cooperation. In both cases, position and centrality within the network confers certain advantages and disadvantages, the distribution of which defines a hierarchy. In this article, I explore the idea of dual networks of world cities and firms, then use Breiger's approach to define two such networks: one among 313 world cities, another among 100 advanced producer service firms. Comparison of the degree of inequality in the hierarchies implied by these networks suggest that world city hierarchies are steeper than firm hierarchies (that is there is greater inequality among cities). Thus, even under conditions of footloose global capitalism, place still matters: where a producer is located has more impact than who provides support services.     

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.     

Demografischer Wandel,Alterung und Arbeitsmarkt in Deutschland

Debates about the consequences of demographic change for the labor market relate to two distinct levels; both will be addressed in this chapter. First, demographic ageing changes the composition of the workforce. Theories about how labor markets work lead to the conclusion that demographic changes do not affect immediately supply and demand of labor and the structure of the workforce. Rather, consequences of demographic changes are moderated by labor market institutions.Second, demographic ageing has consequences for the organization of work. Permanent topics of sociological research are consequences of ageing workforces in the firm for productivity and innovation, consequences of ageing workforces for human resource policies of firms, extent of and coping with the problem of limited durations to perform strenuous work tasks, and consequences of ageing workforces for industrial relations. One central finding is that firms meet various challenges in their external and internal environments, among them being ageing workforces only one. Moreover, as strategic actors, different firms can choose different strategies even in similar environments. Consequences of demographic changes for work organization on enterprise level are, therefore, far from deterministic.     

Global cities in Global Commodity Chains: exploring the role of Mexico City in the geography of global economic governance

In this article I assert that global cities are critical nodes in Global Commodity Chains because it is from them that producer services are provided. I explore forward linkages of producer service firms in Mexico City, showing that there are important service flows to companies responsible for the globalization of the 'Mexican' economy. Based on this finding I also indicate reasons why Mexico City is 'on the map' of global cities and of Global Commodity Chains. I argue that both access to local knowledge and close contact to clients are key factors. A third issue dealt with is the position of Mexico City in the geography of governance of commodity chains. The analysis suggests that it is useful to break up global city functions into the management of the world economy and into its command and control, because Mexico City is certainly a place for the former, while the scope of influence exercised from the city is rather limited.     

INNOVATION: ITS PUBLIC AND PRIVATE ASPECTS AND SOME OF THEIR EMPIRICAL IMPLICATIONS FOR MERGERS

Innovators may have incentives to incur the expense of the search for new knowledge even if others can use the results without contributing to the costs of the search for them. Why? Assume firms choose their actions independently. Assume new knowledge is a free public good: a firm can make the product at lower cost even if it spends nothing on research, if another does the research. The most plausible noncooperative equilibrium in this situation is stochastic: firms will decide what to do on the basis of a random device. The theory determines the probability that the firm spends nothing, or something, on research. In consequence, no firm can be certain that a rival will do the research; no firm can be certain of becoming a free rider. In consequence, there will be no relation on average between returns on research-outlays and size of outlays; but the yield on research always will be positive. Innovation can lead to differences among firms, but these differences should not persist, as firms can gain by eliminating them. In a non-cooperative equilibrium, where firms have different cost conditions, the allocation of output among them is inefficient. Such inefficiency can be eliminated if information about methods of production is sold, say by way of licensing. But royalty receipts are a very small fraction of total revenues, even in research and development intensive industries such as chemicals and scientific instruments. Merger is another avenue of cooperation. The theory which assumes research results are private predicts a positive relation between merger activity and technical change. Empirical evidence for the 1879–1930 inverval supports this prediction.     

Organisation et institution: vers une socioéconomie de la firme?

The paper aims at showing that beyond its economic nature the firm is an organized social institution. The theory of the firm does not succeed in unifying in a single analytical framework both its institutional and organizational dimensions. In contrast, organization theory – notably organizational sociology – deals with the intertwining of these two existential elements of firms. The cross-fertilization which occurs between these two social sciences can be used to propose a real socio-economic theory of the firm.     

The Re-Emerging Role of the State in Contemporary Russia

I examine ownership structure of Russian firms during the 1998?C2006 period, where a greater emphasis is placed on motivations behind increased government ownership in the latter years, when oligarchs?? opportunistic influence on the firm diminished as state ownership correspondingly increased. As this phenomenon is also correlated with improved corporate growth during the period, I argue that state participation in corporate governance acted as an effective substitute mechanism to constrain wealth-tunnelling behaviour of corporate insiders and local bureaucrats in a country defined by a weak property rights system.     

The link between economic and social upgrading in global supply chains: Experiences from the Southern Cone

This article uses nine case studies of global supply chains (GSCs) in Southern Cone countries to explore the extent to which economic and social upgrading are linked and spread from lead firms to their supply chain. While economic and social upgrading are found in lead firm segments throughout the case studies, the impacts on suppliers are varied. Pattern groupings enable the authors to develop a three‐part typology of development in GSCs, in the light of which they consider the roles of public policies, company behaviour and social actors in addressing developmental outcomes for GSC lead firms and suppliers.     

MULTIREGIONAL FIRMS AND REGION SWITCHING IN THE U.S. MANUFACTURING SECTOR

I use data on U.S. manufacturing establishments to study the spatial reallocation of resources that takes place within surviving firms as they open and close establishments in different regions. To motivate the empirical analysis, I extend existing models of industry dynamics to include production‐location decisions within firms. Consistent with the theory, the empirical results show that only a fraction of firms make the same product in multiple regions, that multiregional firms are larger and more productive on average compared to single‐region firms, and that “region switching” is pervasive among multiregional firms and correlated with changes in firm and firm‐region characteristics. (JEL L2, F12, F23)     

Making connections between global production networks for used goods and the realm of production: a case study on e‐waste governance

Recent scholarship on waste within economic geography and global production network (GPN) studies has identified several unique characteristics of networks for used goods vis‐à‐vis ‘traditional’ GPN studies focused on production, exchange and consumption. However, in un‐bracketing GPNs to include analysis of post‐consumption activity, identifying how the distinct moments of production, exchange, consumption and disposal/recycling are related becomes a crucial task. Towards this end, I present a case study on the governance of e‐waste networks that draws upon discussions of performativity and Hudson's cultural political economy approach to GPNs. In my analysis, I demonstrate how multiple factors, such as ideological differences over how to handle e‐waste, the non‐standardized nature of used goods, as well as production factors such as design choices and planned obsolescence, all shape and disrupt efforts to standardize and coordinate resource recovery and hazard mitigation in the post‐consumption phase of electronic goods. Such analysis moves past the novelty of GPNs for used goods toward a more integrated understanding of GPNs as a whole.