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Rising Power Clusters and the Challenges of Local and Global Standards

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  • Peter Knorringa
  • Khalid Nadvi

Abstract

This paper explores the intersection between three processes associated with globalisation. First, the rise of emerging economies like China, Brazil and India, the so-called ‘Rising Powers’, and their potential to define the contours of globalisation, global production arrangements and global governance in the twenty-first century. Second, the importance of corporate social responsibility (CSR) goals in the shaping of global trade rules and industrial practices. Third, the significance of small firm clusters as critical sites of industrial competitiveness. Some of the most significant examples of successful, innovative and internationally competitive small firm clusters from the developing world are located in the ‘Rising Powers’ and cluster promotion is a core element of national industrial policy in some of these countries. There is also evidence of engagement by clustered actors with corporate social responsibility goals around labour and environmental impacts. While these three processes have been separately studied there has been no attempt to explore their intersections. This paper addresses this gap through a comparative analysis of secondary data, and a detailed reading of the literature, on CSR and clusters in Brazil, China and India. It assesses the evidence on small firm clusters in the Rising Power economies and considers how these Rising Power clusters engage with CSR goals pertaining to labour, social and environmental standards. It argues for a greater focus on the formal and informal institutional context, termed the ‘social contract’, in explaining divergent experiences and practices observed across these countries. This raises important questions for future academic and policy research on clusters, CSR and the Rising Powers. The paper concludes by outlining a research agenda to explore the local and global consequences of the relationship between Rising Power clusters and international labour and environmental standards. Copyright The Author(s) 2016

Suggested Citation

  • Peter Knorringa & Khalid Nadvi, 2016. "Rising Power Clusters and the Challenges of Local and Global Standards," Journal of Business Ethics, Springer, vol. 133(1), pages 55-72, January.
    • Handle: RePEc:kap:jbuset:v:133:y:2016:i:1:p:55-72
    DOI: 10.1007/s10551-014-2374-6
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    Citations

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    Cited by:

    1. Peter Lund-Thomsen, 2020. "Corporate social responsibility: A supplier-centered perspective," Environment and Planning A, , vol. 52(8), pages 1700-1709, November.
    2. Ernesto Noronha & Premilla D’Cruz & Muneeb Ul Lateef Banday, 2020. "Navigating Embeddedness: Experiences of Indian IT Suppliers and Employees in the Netherlands," Journal of Business Ethics, Springer, vol. 164(1), pages 95-113, June.
    3. Margareet Visser & Matthew Alford, 2024. "Governance and Power Across Intersecting Value Chains: The Case of South African Apples," Journal of Business Ethics, Springer, vol. 189(1), pages 69-86, January.
    4. V.G. Venkatesh & Abraham Zhang & Eric Deakins & Venkatesh Mani, 2021. "Antecedents of social sustainability noncompliance in the Indian apparel sector," Post-Print hal-04455594, HAL.
    5. Natalie J. Langford, 2021. "From Global to Local Tea Markets: The Changing Political Economy of Tea Production within India's Domestic Value Chain," Development and Change, International Institute of Social Studies, vol. 52(6), pages 1445-1472, November.
    6. Rafael Morais Pereira & Ana Cláudia Azevedo & Fabio Emanuel Farago & Felipe Mendes Borini, 2024. "Technological intensity and local socio‐economic development," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(2), pages 1043-1057, March.
    7. Geetika Jain & Archana Shrivastava & Justin Paul & Ronak Batra, 2022. "Blockchain for SME Clusters: An Ideation using the Framework of Ostrom Commons Governance," Information Systems Frontiers, Springer, vol. 24(4), pages 1125-1143, August.
    8. Arkadiusz Michał Kowalski, 2021. "Dynamics and Factors of Innovation Gap Between the European Union and China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(4), pages 1966-1981, December.
    9. Koenig-Archibugi, Mathias, 2017. "Does transnational private governance reduce or displace labor abuses? Addressing sorting dynamics across global supply chains," LSE Research Online Documents on Economics 83517, London School of Economics and Political Science, LSE Library.
    10. Giuliani, Elisa & Ciravegna, Luciano & Vezzulli, Andrea & Kilian, Bernard, 2017. "Decoupling Standards from Practice: The Impact of In-House Certifications on Coffee Farms’ Environmental and Social Conduct," World Development, Elsevier, vol. 96(C), pages 294-314.
    11. Blind, Knut & Kenney, Martin & Leiponen, Aija & Simcoe, Timothy, 2023. "Standards and innovation: A review and introduction to the special issue," Research Policy, Elsevier, vol. 52(8).
    12. Dongsoo Kim & Jongseon Lee & Nami Kim, 2023. "Engaging CSR in SMEs by exporting: The critical factors of CEOs and markets," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1953-1964, July.
    13. Abdelmajid EL WAATMANI, 2018. "Industrial clusters and promotion of CSR: the case of developing countries," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 9(2), pages 69-80, December.
    14. Mathias Koenig‐Archibugi, 2017. "Does transnational private governance reduce or displace labor abuses? Addressing sorting dynamics across global supply chains," Regulation & Governance, John Wiley & Sons, vol. 11(4), pages 343-352, December.
    15. Enrico Fontana & Niklas Egels-Zandén, 2019. "Non Sibi, Sed Omnibus: Influence of Supplier Collective Behaviour on Corporate Social Responsibility in the Bangladeshi Apparel Supply Chain," Journal of Business Ethics, Springer, vol. 159(4), pages 1047-1064, November.
    16. de Carvalho, Nayara Louise Alves & Ribeiro, Priscilla Cristina Cabral & García-Martos, Carolina & Fernández, Camino González & Vieira, José Geraldo Vidal, 2019. "Urban distribution centres in historical cities from the perspective of residents, retailers and carriers," Research in Transportation Economics, Elsevier, vol. 77(C).
    17. Abdelmajid EL WAATMANI, 2018. "Industrial clusters and promotion of CSR: the case of developing countries," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 9(2), pages 69-80, December.
    18. Gary GEREFFI & Anne Caroline POSTHUMA & Arianna ROSSI, 2021. "Introduction: Disruptions in global value chains – Continuity or change for labour governance?," International Labour Review, International Labour Organization, vol. 160(4), pages 501-517, December.
    19. Venkatesh, V.G. & Zhang, Abraham & Deakins, Eric & Mani, Venkatesh, 2021. "Antecedents of social sustainability noncompliance in the Indian apparel sector," International Journal of Production Economics, Elsevier, vol. 234(C).

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