Chapter 6- Designing global value chains

This podcast accompanies Chapter 6 "Designing global value chains" of our textbook. A global value chain (GVC) combines functions and operations worldwide through which goods and services are produced, distributed and consumed. In this chapter, we explain the relevant concepts and frameworks related to the analysis of GVCs. We introduce the elements to characterize a value chain and familiarize the reader with the historical development and rise of GVCs as well as with trends that will reshape tomorrow’s GVCs. We introduce the factors that influence the configuration of GVCs. Furthermore, the reader will be familiarized with alternative governance and control mechanisms that the firm can choose in connection with the GVC configuration. In addition, based on key decision variables we will derive alternative GVC strategies for managers. We supplement the GVC analysis with industry and firm examples and end the chapter with a more comprehensive discussion of practices at a Danish shoe manufacturer. Keywords: Global value chain, smiling curve, value chain configurations, value chain strategies, offshoring, outsourcing   International Business Strategy and Cross-Cultural Management: An applied approach written by: Nicole Franziska Richter (Professor of International Business at the University of Southern Denmark), Jesper Strandskov (Professor Emeritus of International Business at the University of Southern Denmark), Sven Hauff (Professor of Human Resource Management at Helmut Schmidt University in Germany), Vasyl Taras (Professor of International Business at the University of North Carolina at Greensboro in the US) published by: Edward Elgar Publishing. Link: https://www.e-elgar.com/shop/gbp/international-business-strategy-and-cross-cultural-management-9781839108648.html