Prospects for Labour in Global Value Chains: Labour Standards in the Cut Flower and Banana Industries

Global value chain (GVC) governance is central to analyses of labour's strategic options. It frames the terrain on which labour campaigns and institutions — such as private social standards and international framework agreements — contribute to the social regulation of value chains. GVC concepts help to emphasize how power in the employment relationship transcends organizational boundaries, as well as how industrial power is shifting from the sphere of production to that of consumption. Based on extensive case studies of the banana and cut flower value chains, we explore the implications of GVC restructuring for the scope and form of labour rights strategies.     

从产品供应链管理走向信息化篚价值网络管理：双案例研究

近年来产品供应链管理得到了广泛的关注,而产品供应链强调的是产品从供应商到分销商乃至最终客户的流程活动,基于此很多供应链信息技术的运用都是支持这一活动过程的,然而,随着经济全球化以及市场变化的加剧,使得企业越来越从产品供应链转向信息化为基础的价值网络。通过安吉物流以及苏宁电器的供应链信息化运作为研究对象,揭示了新时代价值网络管理的特征以及组织方式。指出价值网络管理的运行不仅是供需之间的产品经营和信息的协同,更是计划、知识、流程和投资行为的协同化,此外在组织方式上,则是以服务为中心、供需互动为手段、链式、辐射式、星座式创新为基础的综合管理体系。     

The impacts of value chain upgrading on the export of processed food

Upgrading in global value chains (GVCs) is an important path for developing countries to move along to capture higher benefits. Several qualitative studies of GVCs have identified two main upgrading types: economic (product, process, functional, and inter-sectoral) and social upgrading. The upgrading concept is widespread in productive sectors such as processed food, which has become a key export for developing countries. However, they have confronted multiple product standards required by global buyers. This study uses a case study of Thailand’s processed food exports (TPFEs). Although Thailand is a leading exporter of processed food, the country needs to upgrade in many areas related to production to meet global product standards and requirements. If Thailand fails to comply with global product standards, it will lose its export competitiveness. This study uses a gravity model to evaluate the impact of economic and social upgrading (EUP and SUP) on TPFEs. Our results show that upgrading types are significant in TPFEs, particularly for exports to developed countries. Process upgrading has a negative impact on TPFEs because of increased production costs to comply with product standards. However, process upgrading can lead to increased producers’ and exporters’ knowledge about how to comply with international standards. Consequently, process upgrading exhibits a lagged positive effect on TPFEs.     

Reducing food waste and food insecurity in the UK: The architecture of surplus food distribution supply chain in addressing the sustainable development goals (Goal 2 and Goal 12.3) at a city level

The paradox that tonnes of food is wasted while people go hungry has raised concern from national and international authorities. In developed countries, reducing these problems has focused on surplus food distribution as a ‘win-win’ solution contributing to sustainable development goals. While the existing literature acknowledges the role of third-sector organisations, research on the supply chain of surplus food distribution and the coordination among actors is limited. This research explores actors and organisations in the value chain of surplus food distribution at the city level. Based on semi-structured interviews and participant observation, our findings highlight the need for a coordinated effort between actors as an essential arrangement to capture the value of surplus food. Despite the close cooperation, hierarchical power relationships exist between organisations in the supply chain. We unpack challenges in the surplus food supply chain, such as lack of a legislative framework for food donations and organisational sustainability issues that have forced third-sector organisations to work independently to reduce the uncertainties of food quality and quantity. We shed light on the practical implications by highlighting how multiple stakeholders could improve the efficiency of surplus food distribution.     

A ‘Decent Cuppa’: Worker Power and Consumer Power in the Sri Lankan Tea Sector

Consumers are increasingly seen as playing an important role in global labour governance through the establishment of voluntary certification programmes that promise better economic and social conditions for workers in global value chains. In the Sri Lankan tea sector, however, these private forms of governance (Rainforest Alliance (RA), UTZ Certified and the Ethical Tea Partnership (ETP)) at best have no effect and at worst are associated with indecent forms of work. Rather, conditions of work are defended by powerful trade unions that exercise structural power via their strategic position in the value chain and associational power through links with political parties and residual ethnic ties within and between nation‐states. It is evident that through close collaboration between the International Labour Organization (ILO) and the tea sector unions, workers are able to leverage institutional power through both national and international labour standards to reinforce decent work for those at the very bottom of the global value chain.     

The consequences of voluntary traceability system for supply chain relationships. An application of transaction cost economics

This paper analyses the effects of voluntary traceability on vertical relationships within food supply chains using a transaction cost perspective. The analysis makes reference to the Italian situation where the national standard organization has introduced a private standard for traceability that provides a higher degree of information associated with the individual product than the European mandatory traceability system. A survey was conducted by questionnaire to assess changes in transaction characteristics, costs and governance after the introduction of voluntary traceability. The sample represents all Italian firms applying this standard. Factorial and cluster analyses were applied to find the different reorganizations of transactions. The results highlight an increase in asset specificity and a decrease in the uncertainty level throughout the supply chains. The introduction of voluntary traceability shows increased vertical coordination for firms that previously used oral agreements and variation in transactions conditions for firms using contracts. Instead vertically integrated firms do not reveal any variation in the governance of transactions as they are already internally safeguarded.     

Good governance? Perceptions of accountability,transparency and effectiveness in Irish food risk governance

In an attempt to govern increasingly globalised, industrialised and risky food chains, food safety authorities (FSAs) have been established worldwide as part of a catalogue of food risk governance reforms undertaken in response to continuing food crises. Despite these significant shifts in governing arrangements however, little work has been conducted regarding how consumers respond to, resist and/or engage with these new governance systems in everyday, non-crisis contexts. As such, this paper explores the everyday governance of food risk from the perspective of those whose voices typically go unheard in food policymaking processes – consumers. Drawing on empirical results from focus groups conducted with publics across the Republic of Ireland, consumer perceptions, priorities and lived experiences relating to food risk governance, and the Food Safety Authority of Ireland (FSAI) in particular, are explored. This analysis is couched within a normative frame of multi-scalar governance and what makes it ‘good’ or effective. Accordingly, the paper advances food risk policy debates through a lens of normative good food risk governance, including analysis of the perceived accountability, transparency and effectiveness of Irish food risk governing structures from a consumer perspective. Identifying limitations in current governing regimes, the paper concludes by critically reflecting on the opportunities and challenges for adopting more adaptive forms of governance in the multi-scalar and evolving policy context that typifies food risk.     

技术标准中专利分布影响下的价值链治理模式研究——以移动通信产业为例

在全球化背景下,价值的垂直分离产生了价值模块相互衔接的治理问题,并成为学术界关注的焦点。在这种研究视角下,本文通过讨论不同学科对价值链治理主流模式的不同判定,而引出研究的问题;在回顾了成熟的价值链治理模式决定因素的相关理论基础上,质疑了“交易的复杂性”、“交易的可编码能力”、“供应端能力”这三个变量单一决定价值链治理模式的传统理论,并进一步提出了研究的假设:技术标准中专利的分布也会对价值链治理模式产生重大影响。文章以全球移动通信产业为研究对象,分别分析了GSM、CDMA两种技术标准,由于其专利在价值链当中分布的不同状况,而表现出不同的价值链治理模式。在此基础上,文章进行了理论总结和相关讨论:价值链当中技术标准的专利分布状况,很大程度上影响了其价值链治理的模式。技术标准中专利分布越均衡、分散,则价值链越趋近于“网络型”,甚至“市场型”治理;反之,技术标准中专利分布越不均衡、集中,则趋近于“半层级型”,甚至“层级型”治理。     

Corporate governance antecedents to shareholder activism: A zero‐inflated process

Research summary: Shareholder activism has become more widespread, yet the role of corporate governance as antecedent to shareholder activism remains equivocal. We propose a new conceptual model that characterizes the stochastic of observable shareholder activism as a compound product of two latent components representing (1) shareholder activists' propensity to target a company and (2) executives' propensity to settle activists' demands privately. Our model explicitly decouples corporate governance expectations for the two latent components embedded in activism process, and thus allows us to relax assumptions of homogenous shareholder interests and constrained managerial discretion where corporate managers are expected to negotiate privately and settle only value‐creating activist demands. Bayesian analysis of zero‐inflated Poisson regression reveals that corporate governance relationships with activism vary across shareholder demands and private settlements. Managerial summary: Increasing shareholder activism has generated debates as to whether activism promotes managerial accountability and responsibility or instead encourages managerial short‐termism. Our research model allows for heterogeneous interests among a company's shareholders. We theorize and empirically investigate a broader role of corporate governance: governance mechanisms need to ensure that executives are not (1) ignoring activists' value‐increasing demands or (2) accommodating activists' value‐decreasing demands in a private, opaque manner that disenfranchises other shareholders. Our results indicate that corporate governance implications differ for visible shareholder demands in contrast with private activism. A plausible application of our model is that it provides estimates of the probability of the numbers of shareholder demands to be received by a firm and the probability of privately settling a demand. Copyright © 2015 John Wiley & Sons, Ltd.     

Technology adoption and value chains in developing countries: Evidence from dairy in India

Adoption of modern technologies in agriculture is crucial for improving productivity and welfare of poor farmers in developing countries. Not much is known about how value chains do (not) affect technology transfer and/or adoption in food chains in developing countries. We analyze farm-level technology adoption in the dairy chain in India, using unique survey data. The dairy chain in India is an important case because the Indian government has promoted development of the dairy sector for its potential for ‘pro-poor’ growth, and because value chain initiatives had strong effects on dairy farm technology in other countries with imperfect markets and growth in demand. We find that despite rapid growth in milk consumption and production, technology adoption in the form of better hygienic practices, better feed and improved livestock was mixed, and low for certain regions and technologies. So far, the role of value chains in the adoption of new technologies seems to be minor.     

Strategic marketing in global supply chains: Four challenges

Supply chain management has emerged as a critical arena in which firms can find significant cost reduction opportunities, giving them a cost advantage over competitors. When supply chain management orientations are adopted by several firms in a supply chain, together they can significantly reduce supply chain costs pitting supply chain against supply chain. However, the pursuit of cost savings opportunities is not the only objective of supply chain management. Superior supply chain management can facilitate marketing strategy and lead to the creation of superior customer value, satisfaction, and loyalty, which in turn lead to improved product profit margins, overall firm profitability, and overall corporate growth. However, marketing strategy is problematic in global supply chains. Specifically, four significant strategic marketing challenges exist that relate to the development and execution of marketing strategy in global supply chains. This article draws attention to these challenges to stimulate managerial and research efforts that will move marketing strategy through the 21st century.     

Capture,governance, and resilience: strategy implications from the history of Rome

Organizational resilience is a subject of great interest to management and strategy scholars. Drawing on over 1,000 years of historical data on the Republic of Rome, and focusing primarily on the period of its establishment (509 BC–338 BC), we identify two generic strategies, capture and governance, that together are essential for organizational resilience. Capture strategy relates to market expansions, while governance strategy refers to the capacity of an organization to assimilate, retain, defend, and increase its dominance within annexed markets. The history of Rome also reveals four supporting tactics—saving power, maintaining a stronghold base, isolating and weakening adversaries, and creating forward outposts—that shore up and reinforce the capture and governance strategies, to create a more enduring and resilient enterprise. Interestingly, a system‐wide view of the strategy‐tactic framework also offers insights on resilience through smallness, thus illustrating its conceptual utility to organizations of all sizes including small enterprises. Copyright © 2010 John Wiley & Sons, Ltd.     

Demand supply network opportunity development processes in emerging markets: Positioning for strategy realization in Russia

This paper aims to shed light on the management of supply chains, or rather, demand supply networks (DSN) in emerging markets by foreign companies. According to our definition, specific DSN opportunity development processes are directed towards better functionality and coordination of product, finance and information flows across the DSN. As a consequence, improved performance of the DSN may be achieved, in order to support and realize competitive business strategy and facilitate value creation for customers. To illustrate the concepts and the model, empirical evidence is presented that establishes the role of changing network structures and incumbent capabilities as constraints for DSN opportunity capture, especially in emerging markets. Our results show that DSN positioning strategies designed to overcome these constraints and facilitate opportunity capture, must be proactive, well-timed and innovative.     

The costs of increased localization for a multiple-product food supply chain: Dairy in the United States

There is increased interest in greater localization of food supply chains but little evidence about the effects of localization on supply-chain costs. Assessing these effects is complex in multiple-product, multi-process supply chains such as the dairy industry. In this study, we develop a spatially-disaggregated transshipment model for the US dairy sector that minimizes total supply-chain costs, including assembly, processing, interplant transportation and final product distribution. We employ the cost-minimizing solution as benchmark to compare alternative scenarios of increased supply chain localization. Our results indicate: (1) short-run limits to increased localization, (2) modest impacts on overall supply-chain costs, and (3) large cost re-allocations across supply chain segments, regions and products. We find that increased localization reduces assembly costs while increase processing and distribution costs. Cost increases are larger in regions with smaller raw milk supplies and during the season when less raw milk is produced. Minimizing distances traveled by all dairy products results in tradeoffs across products in terms of cost and distance traveled. The relationship between increased localization and costs appears to be nonlinear.     

The governance of inter-organisational relationships during different supply chain maturity phases

Supply chains and inter-organisational relationships have increased in popularity in recent years and supply chain management has received a vast amount of academic attention. The objective of this paper is to explore the implementation of supply chain management and, in particular, the changing phases of a supply chain as it moves towards maturity. We employ the minimal structure framework of van der Meer-Kooistra and Scapens [“The governance of lateral relations between and within organisations”, Management Accounting Research, 2008] to analyse the governance of a supply chain as it moves through the various phases. Drawing on the findings from a case study in an aero-manufacturing company, we explore how the minimal structures emerge and evolve as the supply chain matures.     

Illegal activity in the UK halal (sheep) supply chain: Towards greater understanding

Food supply chain theory and practice assumes that the processes involved are legal and value adding. In this paper, using examples from the UK halal (sheep) meat supply chain, we outline a value extracting value chain through a mixed methods qualitative approach consisting of face-to-face-interviews and a documentary research strategy underpinned by Narrative Inquiry. Building on previous theoretical work on Illegal Rural Enterprise, we present a narrative of an individual rogue-farmer, and explore his involvement in the illegal halal (‘smokies’) trade over a fifteen-year period. The paper provides a compelling story that will enable investigators to better understand illegal enterprise from a supply chain perspective and more adequately address the concerns stated in the UK Fraud Act 2006. The paper will be useful to food standards agencies in that furthers our understanding of entrepreneurial practice and morality in the food industry. The results demonstrate that illegal rural enterprise is a multi-faceted concept that requires an understanding of business practices and processes alongside a multi-agency approach to enterprise orientated crime. Our approach suggests that supply chains can be ‘flipped’ in order to understand illegal processes in addition to conventional legal processes.     

Quality improvement in competing supply chains

In this study, we consider quality improvement in a given segment of the market, shared by two supplier-manufacturer supply chains which offer a given product at the same price but compete on quality. The mechanism on the selection of supply chain structures and quality improvement strategies of the two supply chains is described. In particular, we analyze three possible structure combinations: two integrated supply chains, two decentralized supply chains, and one integrated and one decentralized supply chains. Between the supply chains, Nash's non-cooperative game is implemented. Numerical experiments illustrate the mechanism and some related issues are discussed.     

Structuring and contracting in competing supply chains

This paper considers two competing supply chains, each with multiple upstream suppliers producing complementary products and selling to a single buyer (e.g., assembler or retailer), who then sells the finished assembled product to a market that involves both demand uncertainty and competition. Our main research questions focus on what supply chain structure (integration vs. decentralization) and which contracting strategy a business should choose. We find that supply chains that decentralize perform better under strong market competition (i.e., high degree of product substitution between supply chains). However, when a large number of suppliers exist, supply chains that integrate perform better. When decentralized structures are used for both supply chains, a consignment with revenue sharing contract generally outperforms a wholesale price contract from the downstream retailer's point of view. Interestingly, for a supplier, a wholesale price contract, which pushes all demand risks to the downstream retailer, might not be preferred. For the entire supply chain, one contract strategy can outperform another depending on the degree of competition, the cost share of the buyer, and the number of suppliers.     

Sustaining linkages to high value markets through collective action in Uganda

Uganda’s rapid urbanization offers new market opportunities for smallholder farmers to supply higher value markets such as supermarket chains and fast-food restaurants. Supplying these formal outlets offers higher incomes but accessing and maintaining links to these markets requires significant upgrading in terms of product quality and business management. To meet these conditions farmers need to become more organized which requires increased levels of social capital, to strengthen internal and external relations with group members, service providers and market chain actors. One farmers’ group in south-western Uganda has successfully sustained sales of potatoes to a fast-food outlet in Kampala. Farmers had to learn a series of new skills and integrate multiple technical, organizational, financial and marketing innovations. This paper outlines how collective action combined with strong leadership and an iterative market-led learning process enabled a smallholder farmers’ association to meet the considerable challenges of achieving the stringent quality parameters of a modern food outlet.     

价值链空间形态演变下的治理模式研究--以集成电路(IC)产业为例

伴随经济发展、市场变化、技术演进，价值链的分离与整合在不同空间尺度中上演。其组织形态发生了巨大的变化，相应的其治理模式也随之改变。本文首先界定了价值链治理的概念，分析了价值链层级型、市场型、网络型、半层级型治理模式的特点。然后从独特的空间视角，研究价值链的形态演变，以及与其形态变化相对应的治理模式的改变。并以集成电路产业（以下简称IC产业）为例．系统地分析了IC产业价值链治理模式变化的过程．