Global Value Chain Reconfiguration and COVID-19: Investigating the Case for More Resilient...

What is it about?

The COVID-19 pandemic shocked the global economy, laying bare the coordination challenges and vulnerabilities of global value chains (GVCs) across sectors. Governments, consumers, and firms alike have called for greater GVC resilience to ensure critical products are delivered to the right place, at the right time, and in the right condition. This article investigates whether GVC reconfiguration through the adoption of redistributed manufacturing (RDM) in local production can deliver greater resilience against unexpected, disruptive global events. It proposes actionable steps for managers to ensure more resilient GVCs in the face of global shocks.

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Why is it important?

------------------------------------------------------- Contribution to Academic Scholarship ------------------------------------------------------- Our article contributes to existing research into Global Value Chains (GVCs) and identifies a novel area in the debate over value chain (re-)configuration by drawing on the redistributed manufacturing (RDM) perspective. We argue RDM-led value chain reconfiguration has the potential to deliver greater resilience against disruptive global events such as COVID-19. ------------------------------------------------------- Contribution to Management Practice ------------------------------------------------------- Our article offers insights for managers and policymakers seeking to reconfigure existing GVCs in the face of global shocks. We position a framework and propose actionable steps for business leaders in any sector to navigate the minefield of disrupting existing GVCs to ensure more responsive and resilient value chains. ---------------------------- Author Perspective ---------------------------- We were in a unique position in building on data collected before, during, and after the peak of the COVID-19 outbreak. In doing so, we are able to provide a compelling story during a time of historical significance and report on the vulnerabilities of global value chains (GVCs) that were evident across sectors throughout the pandemic, highlighting the saliency of redistributed models of production that support more localized, resilient, and agile value chains.