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Time to learn? Assignment duration in global value chain organization

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  • Buckley, Peter J.
  • Craig, Thomas D.
  • Mudambi, Ram

Abstract

In the examination of outsourcing and offshoring strategies to establish and orchestrate global value chains (GVCs), scholars have focused almost exclusively on two key decision dimensions – control and location – as the primary determinants of these complex organizational structures. However, the dynamic, temporal nature of GVCs can be further explained via a third organizing decision dimension that has received surprisingly little attention in this literature: time. This relates to the length of time that control and location settings are chosen ex ante to remain in effect. We explore this issue and assert that assignment durations are linked to activity type, and that mismatched durations can destroy value in even the most logically controlled and located GVC activities. We argue that while control and location are essential decisions for GVC orchestrators, how long these settings are in put into effect also plays a critical but overlooked role in efficient value chain organization.

Suggested Citation

  • Buckley, Peter J. & Craig, Thomas D. & Mudambi, Ram, 2019. "Time to learn? Assignment duration in global value chain organization," Journal of Business Research, Elsevier, vol. 103(C), pages 508-518.
    • Handle: RePEc:eee:jbrese:v:103:y:2019:i:c:p:508-518
    DOI: 10.1016/j.jbusres.2018.01.011
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