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Lead firm’s reconfiguration decision and performance of the value chain

Lead firm’s reconfiguration decision and performance of the value chain This paper aims to trace the performance consequences of within-lead firm reconfigurations of global value chains with respect to business performance and upgrading.Design/methodology/approachThe study is based on two detailed company case studies which are analysed in an organizational design approach.FindingsLead firms systematically separate and internalize high value-added activities in otherwise low value-added processes leading to constant reconfigurations and reorganizations of the production processes in global value chains. The study finds that similar reconfigurations may trigger different changes and changes and performance consequences may differ considerably according to the level of analysis. The two cases help to understand the specific roles of the outsourcing and offshoring decisions in shaping actual global value chain structures.Originality/valueThe consequences of within-lead firm reconfigurations are rarely analysed in the literature. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Competitiveness Review Emerald Publishing

Lead firm’s reconfiguration decision and performance of the value chain

Competitiveness Review , Volume 31 (2): 16 – Feb 4, 2021

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References (39)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1059-5422
DOI
10.1108/cr-08-2020-0099
Publisher site
See Article on Publisher Site

Abstract

This paper aims to trace the performance consequences of within-lead firm reconfigurations of global value chains with respect to business performance and upgrading.Design/methodology/approachThe study is based on two detailed company case studies which are analysed in an organizational design approach.FindingsLead firms systematically separate and internalize high value-added activities in otherwise low value-added processes leading to constant reconfigurations and reorganizations of the production processes in global value chains. The study finds that similar reconfigurations may trigger different changes and changes and performance consequences may differ considerably according to the level of analysis. The two cases help to understand the specific roles of the outsourcing and offshoring decisions in shaping actual global value chain structures.Originality/valueThe consequences of within-lead firm reconfigurations are rarely analysed in the literature.

Journal

Competitiveness ReviewEmerald Publishing

Published: Feb 4, 2021

Keywords: Hungary; Upgrading; Global value chains; Reconfiguration; Lead firms; Performance implications

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