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The Coordination and Configuration of Global Value Chains (GVCs)

In: International Management

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  • Manfred Fuchs

    (University of Graz)

Abstract

Multinational firms struggle to find a balance between the degree of integration and standardization of cross-border value-added activities. A major question remains, what are the gains of either internalizing or outsourcing discrete stages of value-adding activities organized by a lead firm? Considering the scale and scope of global production networks, the multinational firm has been a major nexus in studying international business. An integral part of these studies of the strategies and structures of the multinational firm remained the question of how to efficiently organize multiple cross-border business activities within and between firm boundaries. This perspective of the problem neglected the scope of interfirm trade and reduced the governance problem on a too narrow conception of the multinational firm, which was long the dominant focus in IB research. The encompassing and likewise fragmented global division of labor and the global organization of value creation revealed the weakness of this narrow view of the multinational firm.

Suggested Citation

  • Manfred Fuchs, 2022. "The Coordination and Configuration of Global Value Chains (GVCs)," Springer Books, in: International Management, chapter 6, pages 231-268, Springer.
    • Handle: RePEc:spr:sprchp:978-3-662-65870-3_6
    DOI: 10.1007/978-3-662-65870-3_6
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