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The bargaining power,value capture,and export performance of Vietnamese manufacturers in global value chains
Institution:1. Sheffield Business School, Sheffield Hallam University, City Campus, Howard St, Sheffield, S1 1WB, United Kingdom;2. Department of International Economics, Government and Business, Copenhagen Business School, Solbjerg Plads 3, DK-2000, Frederiksberg, Copenhagen, Denmark;1. Department of Management, Universitat Politècnica de Catalunya (Barcelona Tech), EPSEB, Av. Gregorio Marañón, 44-50, 08028 Barcelona, Spain;2. Department of Strategy, Entrepreneurship & Innovation, Toulouse Business School (TBS), 1 Place Alphonse Jourdain, 31068 Toulouse Cedex 7, France;3. Universidad Politécnica International, Costa Rica;4. Business School, Costa Rica Institute of Technology (ITCR), Business School, 15th Street, 14th Avenue, Cartago, Costa Rica;5. Birmingham Business School, University of Birmingham, Edgbaston, B15 2TT, Birmingham, UK;1. Texas A&M University, Dept. of Management, TAMU 4221, College Station, TX, 77843-4221, United States;2. Penn State University - Great Valley, School of Graduate Professional Studies, Malvern, PA 19355, United States;3. The University Of Texas - San Antonio, One Utsa Circle, San Antonio, TX 78249, United States;4. Penn State University – Berks, Reading, PA 19610, United States;1. Poznań University of Economics and Business, Al. Niepodległości 10, 61-875, Poznań, Poland;2. Vistula University, Ul. Stokłosy 3, 02-787, Warszawa, Poland;1. Swansea University, United Kingdom;2. International Business School Suzhou, Xi''an Jiaotong-Liverpool University, 8 Chongwen Road, Suzhou, 215123, China;3. DAN Department of Management and Organizational Studies, The University of Western Ontario, Canada;4. University of Aberdeen Business School, King’s College, University of Aberdeen, United Kingdom;5. School of Marketing and Communication, University of Vaasa, Finland;6. University of Kent, Canterbury, CT2 7FS, United Kingdom
Abstract:This study examines the payoff of various initiatives taken by Vietnamese manufacturers to increase their bargaining power relative to global buyers and capture a larger share of the value generated in global value chains. The study focuses on functional upgrade initiatives (i.e., product development, after-sales services, distribution, and promotion) and negotiation process initiatives (i.e., market intelligence and improvement of negotiation skills). A structural equation modelling method is used to analyse the data collected in 2017 from 354 Vietnamese manufacturers inserted in global value chains. The study finds that all initiatives, except after-sales services, significantly strengthen the manufacturers' bargaining power, which, in turn, enhances their export performance.
Keywords:Global value chains  Emerging economy firms  Functional upgrading  Negotiation skills  Bargaining power  Value capture  Export performance
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