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The bargaining power, value capture, and export performance of Vietnamese manufacturers in global value chains

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  • Pham, Hanh Song Thi
  • Petersen, Bent

Abstract

This study examines the payoff of various initiatives taken by Vietnamese manufacturers to increase their bargaining power relative to global buyers and capture a larger share of the value generated in global value chains. The study focuses on functional upgrade initiatives (i.e., product development, after-sales services, distribution, and promotion) and negotiation process initiatives (i.e., market intelligence and improvement of negotiation skills). A structural equation modelling method is used to analyse the data collected in 2017 from 354 Vietnamese manufacturers inserted in global value chains. The study finds that all initiatives, except after-sales services, significantly strengthen the manufacturers' bargaining power, which, in turn, enhances their export performance.

Suggested Citation

  • Pham, Hanh Song Thi & Petersen, Bent, 2021. "The bargaining power, value capture, and export performance of Vietnamese manufacturers in global value chains," International Business Review, Elsevier, vol. 30(6).
    • Handle: RePEc:eee:iburev:v:30:y:2021:i:6:s0969593121000366
    DOI: 10.1016/j.ibusrev.2021.101829
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