IDEAS home Printed from https://ideas.repec.org/a/nos/voprec/y2021id2818.html
   My bibliography  Save this article

The value chain facing the challenges of digitalization and the economic downturn

Author

Listed:
  • V. E. Dementiev

Abstract

The transition to digital technologies is associated with an increase in consumer requirements in a saturated market. The influence of these technologies on the configuration of value chains and on the spacial location of production links of these chains is considered. An approach based on the analysis of real situations in individual industries is used to identify the changes under study. It is shown that the popular concept of the “smiling curve”, which characterizes the distribution of added value between the chain participants, needs to be adjusted when the supplier has unique competencies. The relatively high return on assets of such suppliers is demonstrated by examples. It is shown that firms that form global value chains strive to possess their own competencies that are most important for these chains. The risks faced by value chains in a downturn in the global economy and measures to improve the sustainability of such chains are considered.

Suggested Citation

  • V. E. Dementiev, 2021. "The value chain facing the challenges of digitalization and the economic downturn," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 3.
    • Handle: RePEc:nos:voprec:y:2021:id:2818
    DOI: 10.32609/0042-8736-2021-3-68-83
    as

    Download full text from publisher

    File URL: https://www.vopreco.ru/jour/article/viewFile/2818/2354
    Download Restriction: no
    File URL: https://libkey.io/10.32609/0042-8736-2021-3-68-83?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. World Bank, 2019. "World Development Report 2019 [Rapport sur le développement dans le monde 2019]," World Bank Publications - Books, The World Bank Group, number 30435.
    2. Beata Smarzynska Javorcik, 2004. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages," American Economic Review, American Economic Association, vol. 94(3), pages 605-627, June.
    3. R. Kaplinsky, 2000. "Globalisation and Unequalisation: What Can Be Learned from Value Chain Analysis?," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 117-146.
    4. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    5. Havranek, Tomas & Irsova, Zuzana, 2011. "Estimating vertical spillovers from FDI: Why results vary and what the true effect is," Journal of International Economics, Elsevier, vol. 85(2), pages 234-244.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. V. E. Dementiev, 2022. "Prospects for Russia Under the Digital Domination of China and the United States," Studies on Russian Economic Development, Springer, vol. 33(4), pages 359-366, August.
    2. Cheng, Yiran & Zhou, Xiaorui & Li, Yongjian, 2023. "The effect of digital transformation on real economy enterprises’ total factor productivity," International Review of Economics & Finance, Elsevier, vol. 85(C), pages 488-501.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Petr Pavlínek & Pavla Žížalová, 2016. "Linkages and spillovers in global production networks: firm-level analysis of the Czech automotive industry," Journal of Economic Geography, Oxford University Press, vol. 16(2), pages 331-363.
    2. Yoshimichi Murakami & Keijiro Otsuka, 2020. "Governance, Information Spillovers, and Productivity of Local Firms: Toward an Integrated Approach to Foreign Direct Investment and Global Value Chains," The Developing Economies, Institute of Developing Economies, vol. 58(2), pages 134-174, June.
    3. Stefan Pahl & Marcel P. Timmer, 2020. "Do Global Value Chains Enhance Economic Upgrading? A Long View," Journal of Development Studies, Taylor & Francis Journals, vol. 56(9), pages 1683-1705, July.
    4. Dutta, Sourish, 2017. "Mechanics of Global Value chains: India’s Perspective," EconStor Preprints 235156, ZBW - Leibniz Information Centre for Economics.
    5. McWilliam, Sarah E. & Kim, Jung Kwan & Mudambi, Ram & Nielsen, Bo Bernhard, 2020. "Global value chain governance: Intersections with international business," Journal of World Business, Elsevier, vol. 55(4).
    6. Yoshimichi Murakami & Keijiro Otsuka, 2017. "A Review of the Literature on Productivity Impacts of Global Value Chains and Foreign Direct Investment: Towards an Integrated Approach," Discussion Paper Series DP2017-19, Research Institute for Economics & Business Administration, Kobe University, revised Aug 2019.
    7. Konstantins Benkovskis & Jaan Masso & Olegs Tkacevs & Priit Vahter & Naomitsu Yashiro, 2020. "Export and productivity in global value chains: comparative evidence from Latvia and Estonia," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(3), pages 557-577, August.
    8. Victor Stolzenburg & Daria Taglioni & Deborah Winkler, 2019. "Economic upgrading through global value chain participation: which policies increase the value-added gains?," Chapters, in: Stefano Ponte & Gary Gereffi & Gale Raj-Reichert (ed.), Handbook on Global Value Chains, chapter 30, pages 483-505, Edward Elgar Publishing.
    9. Hatani, Faith, 2009. "The logic of spillover interception: The impact of global supply chains in China," Journal of World Business, Elsevier, vol. 44(2), pages 158-166, April.
    10. Brach, Juliane & Kappel, Robert, 2009. "Global Value Chains, Technology Transfer and Local Firm Upgrading in Non-OECD Countries," GIGA Working Papers 110, GIGA German Institute of Global and Area Studies.
    11. Kluge, Jan & Lappoehn, Sarah & Plank, Kerstin, 2020. "The Determinants of Economic Competitiveness," IHS Working Paper Series 24, Institute for Advanced Studies.
    12. T. Gries & R. Grundmann & I. Palnau & M. Redlin, 2018. "Technology diffusion, international integration and participation in developing economies - a review of major concepts and findings," International Economics and Economic Policy, Springer, vol. 15(1), pages 215-253, January.
    13. Isaksson, Olov H.D. & Simeth, Markus & Seifert, Ralf W., 2016. "Knowledge spillovers in the supply chain: Evidence from the high tech sectors," Research Policy, Elsevier, vol. 45(3), pages 699-706.
    14. Andrés Barge‐Gil & Alberto López & Ramón Núñez‐Sánchez, 2020. "Technological spillovers from multinational firms," The World Economy, Wiley Blackwell, vol. 43(12), pages 3184-3202, December.
    15. Amendolagine, Vito & Prota, Francesco, 2021. "Bilateral investment treaties and backward linkages in Sub-Saharan Africa," International Economics, Elsevier, vol. 165(C), pages 172-185.
    16. Ayako Ebata & Hayley MacGregor & Michael Loevinsohn & Khine Su Win & Alexander W. Tucker, 0. "Value Chain Governance, Power and Negative Externalities: What Influences Efforts to Control Pig Diseases in Myanmar?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 0, pages 1-22.
    17. Emanuela Todeva & Ruslan Rakhmatullin, 2016. "Industry Global Value Chains, Connectivity and Regional Smart Specialisation in Europe. An Overview of Theoretical Approaches and Mapping Methodologies," JRC Research Reports JRC102801, Joint Research Centre.
    18. Dutta, Sourish, 2017. "Research Methods of Assessing Global Value Chains," MPRA Paper 106201, University Library of Munich, Germany.
    19. Olivier N. Godart & Holger Görg, 2016. "Suppliers of multinationals and the forced linkage effect: Evidence from firm level data," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT, chapter 15, pages 277-288, World Scientific Publishing Co. Pte. Ltd..
    20. Anna Giunta & Domenico Scalera & Francesco Trivieri & Jeffrey B. Nugent & Mariarosaria Agostino, 2011. "Firm Productivity, Organizational Choice and Global Value Chain," Working Papers 2011R09, Orkestra - Basque Institute of Competitiveness.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nos:voprec:y:2021:id:2818. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: NEICON (email available below). General contact details of provider: https://www.vopreco.ru .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.