IDEAS home Printed from https://ideas.repec.org/a/taf/eurpls/v29y2021i11p2101-2120.html
   My bibliography  Save this article

The role of tier, ownership and size of companies in value creation and capture

Author

Listed:
  • Jiří Blažek
  • Aleš Bělohradský
  • Zuzana Holická

Abstract

This article aims to address two research questions. First, what is the relationship between the basic characteristics of companies engaged in global and regional production networks (such as their tier, ownership, size) and their economic performance. In doing so, we scrutinize the empirical basis for frequent calls to ‘climb the ladder’. Second, we investigate the extent to which the economic performance of companies is related to their differing intensity of engagement into production networks, something largely disregarded in existing studies. The study uses economic indicators derived from a database covering the evolution of 55 Czech aerospace companies over a 14-year period. The methodology is based on descriptive statistics as well as on canonical correlation that helps to investigate multidimensional conditioning of economic performance of companies. The results show not only large variations in the economic performance of companies, but also several counter-intuitive trends. Our analysis consistently yielded the statistically significant finding that lead firms and first-tier suppliers are able to sacrifice short-term profitability and level of value added in order to reach a higher level of value capture. Therefore, the difference between value creation and value capture require careful consideration by researchers as well as by policymakers when comprehending the costs and benefits of functional upgrading.

Suggested Citation

  • Jiří Blažek & Aleš Bělohradský & Zuzana Holická, 2021. "The role of tier, ownership and size of companies in value creation and capture," European Planning Studies, Taylor & Francis Journals, vol. 29(11), pages 2101-2120, November.
  • Handle: RePEc:taf:eurpls:v:29:y:2021:i:11:p:2101-2120
    DOI: 10.1080/09654313.2021.1889991
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09654313.2021.1889991
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/09654313.2021.1889991?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:taf:eurpls:v:29:y:2021:i:11:p:2101-2120. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CEPS20 .

    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.