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The role of transnational first-tier suppliers in GVC governance

In: Handbook on Global Value Chains

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  • Gale Raj-Reichert

Abstract

Relationships between lead firms and first-tier suppliers in global value chains (GVCs) are dynamic due to changes in competitive pressures, technological innovations and industry evolutions. This chapter examines these changes with a focus on the growing importance of a small group of large transnational first-tier suppliers in the electronics, automotive and apparel industry global value chains. Case studies on a select number of these suppliers show that through their increasing capabilities and growth in responsibilities, they are taking over and strategically influencing more functional roles in global value chains. Through an examination of supplier power and changing business dynamics between lead firms and these suppliers, this chapter points to shifting power relationships towards multi-polar governance in global value chains

Suggested Citation

  • Gale Raj-Reichert, 2019. "The role of transnational first-tier suppliers in GVC governance," Chapters, in: Stefano Ponte & Gary Gereffi & Gale Raj-Reichert (ed.), Handbook on Global Value Chains, chapter 22, pages 354-369, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:18029_22
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    Cited by:

    1. Hyunji KWON & Sun Wook CHUNG & Joonkoo LEE, 2021. "South Korean first‐tier suppliers in apparel global value chains: Upgrading and labour implications in the Asian context," International Labour Review, International Labour Organization, vol. 160(4), pages 553-569, December.
    2. Cuervo-Cazurra, Alvaro & Pananond, Pavida, 2023. "The rise of emerging market lead firms in global value chains," Journal of Business Research, Elsevier, vol. 154(C).

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