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From servant to master: Power repositioning of emerging-market companies in global value chains

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  • Pavida Pananond

    (Department of International Business, Logistics and Transport, Thammasat Business School, Thammasat University)

Abstract

In this article, I analyze how emerging-market firms upgrade their capabilities. Complementing the upgrading-through-technological capabilities view, I propose a power-repositioning argument, whereby local firms improve their power position through taking more control of the chain as part of the upgrading process. In particular, I argue that international expansion toward downstream activities enhances the power position of emerging-market supplier firms in globally integrated buyer-driven industries. This process enables local firms to break away from low-value-added positions within the value chain and exert more power within the governance structure of global value chains.

Suggested Citation

  • Pavida Pananond, 2016. "From servant to master: Power repositioning of emerging-market companies in global value chains," Asian Business & Management, Palgrave Macmillan, vol. 15(4), pages 292-316, September.
    • Handle: RePEc:pal:abaman:v:15:y:2016:i:4:d:10.1057_abm.2016.7
    DOI: 10.1057/abm.2016.7
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