The Governance of the Global Factory: Location and Control of World Economic Activity

By Peter J. Buckley, Roger Strange. 2015

210 citations recorded by the source corpus.

Recent years have witnessed major changes in the global location of economic activity, with the emerging economies assuming greater shares relative to the advanced economies. These developments have led many authors to refer to the idea of the global factory. But little attention has been given to who has control over the geographically dispersed activities—or, to put it another way, about the governance of the global factory. Have the changes in the global location of economic activity come about primarily through the growth of locally owned firms in the emerging economies, or through increased FDI by MNEs from the advanced economies, or through the proliferation of outsourcing arrangements coordinated by firms in the advanced economies? These control/governance issues have profound implications for the capture of the profits/rents earned in global value chains, and hence for the global distribution of income. This paper explores these issues, and considers who has benefited most from the contemporary phase of globalization.

Subfields: Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/95c804bd9ecee45c3f01567c27f982fb8d579f95

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Citations in the corpus

The Governance of Global Value Chains: Unresolved Human Rights, Environmental and Ethical Dilemmas in the Apple Supply Chain (2015, methodology): “This analysis is placed in the context of the theorization of the global value chain (Gereffi et al. 2005; Buckley and Ghauri 2004; Mudambi 2007; Brammer et al. 2011; Buckley and Strange 2015).”
Industry 4.0, global value chains and international business (2017, background): “Over the past few decades, there have been major shifts in the location of many manufacturing activities away from the high-labour-cost advanced economies of North America, Western Europe and Japan towards the emerging economies in search of lower production costs (Buckley and Strange, 2015).”
International entrepreneurship: The pursuit of entrepreneurial opportunities across national borders (2018, background): “Buckley and Strange (2015) recognize that there may be tiers of producers and many-tomany relationships among them, if suppliers are affiliated with multiple multinational enterprises.”
Global Value Chain Configuration: A Review and Research Agenda (2017, background): “Specifically, t has been argued that if lead firms are able to leverage ower over their suppliers they may appropriate the value enerated, since they may increase flexibility and take dvantage of external competencies in terms of better uality or lower costs (Buckley and Strange, 2015).”
An integrative typology of global strategy and global value chains: The management and organization of cross‐border activities (2020, background): “International business scholars began to call for stronger linkages between the GVC paradigm and the literature on MNEs in relation to the grand development challenges of the contemporary era (Buckley & Strange, 2015; Gereffi, 2019a).”
The export performance of emerging economy firms: The influence of firm capabilities and institutional environments (2018, background): “The world economy has undergone significant changes in recent decades in response to major market and trade liberalization initiatives in many countries, with increasing numbers of firms embracing international expansion through exports (Buckley & Strange, 2015).”