Open AccessGlobal Value Chain Governance in the MNE: A Dynamic Hierarchy Perspective
Author(s) -
Paul Ryan,
Giulio Buciuni,
Majella Giblin,
Ulf Andersson
Publication year - 2022
Publication title -
california management review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.806
H-Index - 129
eISSN - 2162-8564
pISSN - 0008-1256
DOI - 10.1177/00081256211068544
Subject(s) - global value chain , multinational corporation , hierarchy , business , supply chain , value (mathematics) , industrial organization , shock (circulatory) , corporate governance , perspective (graphical) , economic shortage , global strategy , economics , international trade , market economy , comparative advantage , marketing , computer science , medicine , linguistics , philosophy , finance , machine learning , artificial intelligence , government (linguistics)
The pandemic crisis caused a severe shock to global value chains and led to supply shortages for complex medical goods such as respiratory ventilators. What followed were calls to reshore production for security, and the loss of efficiencies from foreign global value chain (GVC) operations for the multinational enterprise. This article merges internalization and GVC theory to demonstrate a dynamic hierarchy managerial response to these crisis conditions. An optimally configured GVC under hierarchy governance can resiliently eliminate global supply line ruptures yet maintain the benefits of global efficiency.