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Several Modes of Digitalisation of Value Chains and Their Effects on Firm Behaviour and Performance: Case Studies of Apparel and Video Game Industries

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  • Tri VuPhu
  • Keun Lee
  • Donghyun Park

Abstract

This paper analyses the digitalisation of the global value chain (GVC) in the apparel and video game industries and its effects on firm behaviour and performance. It elaborates on several modes of digitalisation, namely, thin digitalisation, platform digitalisation and full-range digitalisation. Digitalisation contributes to the expansion of the volume of sales and profits while reducing labour costs. However, its impacts on profitability remain uncertain, with the benefits and costs offsetting each other. GVC digitalisation benefits startups by lowering entry costs and facilitating upgrading, whereas it may be detrimental to incumbent companies since it can enable platform providers to transform into competitors.

Suggested Citation

  • Tri VuPhu & Keun Lee & Donghyun Park, 2024. "Several Modes of Digitalisation of Value Chains and Their Effects on Firm Behaviour and Performance: Case Studies of Apparel and Video Game Industries," Global Economic Review, Taylor & Francis Journals, vol. 53(2), pages 116-149, April.
    • Handle: RePEc:taf:glecrv:v:53:y:2024:i:2:p:116-149
    DOI: 10.1080/1226508X.2024.2351797
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