Effects of Path Dependence on Capabilities in Captive Global Value Chains
Journal Title: BAR: Brazilian Administration Review - Year 2015, Vol 12, Issue 4
Abstract
Global Value Chains (GVC) and their participants are dynamic. Events can provoke distinct strategic responses from different firms, even when they are part of a GVC. We investigated how both organizational and supplychain path dependence can influence the capabilities that a firm needs to achieve a higher value-added position in a GVC. We have integrated three branches of theory, covering Global Value Chains, Organizational Capabilities, and Path dependence. We conducted a case study of a large Brazilian shoe firm, analyzing its relationships with buyers in GVCs. We found that path-dependent elements had locked-in the firm, preventing ascension to higher added value positions and keeping the organization in captive global value chain, even when it moved into new markets. Additionally, we propose a theoretical model that should prove fruitful in future research in other sectors and countries.
Authors and Affiliations
Vasconcellos, Silvio Luis de; Garrido, Ivan Lapuente; MarquesVieira, Luciana; Schneider, Luis Carlos
Keywords
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