Summary: | 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.
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