What is it about?
Global Value Chains (GVC) and their participants are dynamic. Events can provoke distinct strategic responses from different firms, even when they are part of a GVC. We investigated how both organizational and supply-chain path dependence can influence the capabilities that a firm needs to achieve a higher value-added position in a GVC.
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Why is it important?
We have integrated three branches of theory, covering Global Value Chains, Organizational Capabilities, and Path dependence. We conducted a case study of a large Brazilian shoe firm, analyzing its relationships with buyers in GVCs. We found that path-dependent elements had locked-in the firm, preventing ascension to higher added value positions and keeping the organization in captive global value chain, even when it moved into new markets.
Perspectives
We propose a theoretical model that should prove fruitful in future research in other sectors and countries.
Dr Silvio L de Vasconcellos
Associacao Escola Superior de Propaganda e Marketing
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This page is a summary of: Effects of Path Dependence on Capabilities in Captive Global Value Chains, BAR - Brazilian Administration Review, December 2015, FapUNIFESP (SciELO),
DOI: 10.1590/1807-7692bar2015150041.
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