When Global Value Chains are Not Global: Case Studies from the Russian Fast-Food Industry

While the global value chain (GVC) literature tends to analyze trade networks and supply chains that are global in the literal sense, I argue that domestically-bound chains led by global firms provide important cases for study through this analytical lens. Importantly, insights regarding the relatio...

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Bibliographic Details
Published in:Competition & change 2011-11, Vol.15 (4), p.274-295
Main Author: Berman, Danielle
Format: Article
Language:English
Subjects:
Case studies
Fast food industry
Supply chains
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Summary:While the global value chain (GVC) literature tends to analyze trade networks and supply chains that are global in the literal sense, I argue that domestically-bound chains led by global firms provide important cases for study through this analytical lens. Importantly, insights regarding the relationship between chain governance and opportunities for upgrading have significant implications for many developing markets even when foreign lead buyers are not fostering export-oriented production. In-depth interviews with representatives from foreign fast-food corporations and their domestic suppliers in Russia provide empirical evidence to support modifications to current theories to better account for how domestic contexts impinge on chain governance and the balance of inter-firm power. I identify factors that provide leverage for domestic actors in these supply chains: regulatory uncertainty, emerging domestic product markets, and the competing interests of foreign firms.
ISSN:1024-5294
1477-2221
DOI:10.1179/102452911X13135903675615