Measuring smile curves in global value chains

The concept and logic of the "smile curve" in the context of global value chains has been widely used and discussed at the individual firm level, but rarely identified and investigated at the country and industry levels by using real data. This paper proposes an idea, based on an inter-country input-output model, to consistently measure both the strength and length of linkages between producers and consumers along global value chains. This idea allows for better identification and mapping of smile curves for countries and industries according to their positions and degrees of participation in a given conceptual value chain. Using the 1995-2011 World Input-Output Tables, several conceptual value chains are investigated, including exports of electrical and optical equipment from China and Mexico and exports of automobiles from Japan and Germany. The identified smile curves provide a very intuitive and visual image, which can significantly improve our understanding of the roles played by different countries and industries in global value chains. Further, the smile curves help identify the benefits gained by these countries and industries through their participation in global trade.

Heckscher-Ohlin : evidence from virtual trade in value added

The fragmentation of production chains across borders is one of the most distinctive feature of the last 30 years of globalization. Nonetheless, our understanding of its implications for trade theory and policy is only in its infancy. We suggest that trade in value added should follow theories of comparative advantage more closely than gross trade, as value-added flows capture where factors of production, e.g. skilled and unskilled labor, are used along the global value chain. We find empirical evidence that Heckscher-Ohlin theory does predict manufacturing trade in value-added, and it does so better than for gross shipment flows. While countries exports across a broad range of sectors, they contribute more value-added in techniques using their abundant factor intensively.

A unified framework of trade in value added : physical, monetary, exchange rates, and GHG emissions

Koopman et al. (2014) developed a method to consistently decompose gross exports in value-added terms that accommodate infinite repercussions of international and inter-sector transactions. This provides a better understanding of trade in value added in global value chains than does the conventional gross exports method, which is affected by double-counting problems. However, the new framework is based on monetary input--output (IO) tables and cannot distinguish prices from quantities; thus, it is unable to consider financial adjustments through the exchange market. In this paper, we propose a framework based on a physical IO system, characterized by its linear programming equivalent that can clarify the various complexities relevant to the existing indicators and is proved to be consistent with Koopman's results when the physical decompositions are evaluated in monetary terms. While international monetary tables are typically described in current U.S. dollars, the physical framework can elucidate the impact of price adjustments through the exchange market. An iterative procedure to calculate the exchange rates is proposed, and we also show that the physical framework is also convenient for considering indicators associated with greenhouse gas (GHG) emissions.

Developing an enterprise simulator to support electronic supply chain for B2B electronic process

The application of any e-Solution promises significant returns. In particular, using internet technologies both within enterprises and across the supply (value) chain provides real opportunity, not only for operational improvement but also for innovative strategic positioning. However, significant questions obscure potential investment; how any value will actually be created and, importantly, how this value will be shared across the value chain is not clear. This paper will describe a programme of research that is developing an enterprise simulator that will provide a more fundamental understanding of the impact of e-Solutions across operational supply chains, in terms of both standard operational and financial measures of performance. An efficient supply chain reduces total costs of operations by sharing accurate real-time information and coordinating inter-organizational business processes. This form of electronic link between organizations is known as business-to-business (B2B) e-Business. The financial measures go beyond simple cost calculations to real bottom-line performance by modelling the financial transactions that business processes generate. The paper will show how this enterprise simulator allows for a complete supply chain to be modelled in this way across four key applications: control system design, virtual enterprises, pan-supply-chain performance metrics and supporting e-Supply-chain design methodology.

Supply chain integration:challenges and solutions

Since its introduction by management consultants in the early 1980s, supply chain management (SCM) has been primarily concerned with the integration of processes and activities both within and between organisations. The concept of supply chain integration (SCI) is based on documented evidence that suggests that much of the waste throughout businesses is a consequence of fragmented supply chain configurations. However, there is also evidence to suggest that the achievement of higher levels of intra- and inter-firm integration presents an array of managerial challenges. The need for innovation in all aspects of SCM is widely recognised. Given the pivotal role of the integration paradigm within SCM, any meaningful innovation in this area must focus heavily on this issue. This chapter outlines some of the challenges by exploring the evolving SCM business context. It goes on to relate SCM theory to the widely cited Porter value chain concept. The core of the chapter provides a detailed description of SCI based on a wide variety of literature. It does so with particular reference to the challenges inherent in implementing an integrated business paradigm with a view to identifying a range of possible innovative solutions. The adoption of more integrated supply chain structures raises questions regarding the nature of both internal and external customer/supplier relationships. The effective management of such relationships is, therefore, given particular focus.

E-procurement in the aviation industry:value creation potential of B2B e-marketplaces

In academic literature, only limited research has been undertaken in exploring the value creation of B2B (Business-to-Business) e-Marketplace models in the aviation industry. The aim of this publication is a theoretical analysis to explore whether or not B2B e-Marketplaces can make a contribution to the achievement of competitive advantage in procurement in the aviation industry. The research focuses on the potential of B2B e-Marketplaces in terms of improving an airline’s competitiveness in its procurement value chain and discusses empirical results from a survey among international e-Marketplace / portal operators

Evaluation of integration technology approaches in the healthcare supply chain

Healthcare organisations are increasingly being challenged to look at their operations and find opportunities to improve the quality, efficiency and effectiveness of their supply chain services. In light of this situation, there is an apparent need for healthcare organisations to invest in integration technologies and to achieve the integration of supply chain processes, in order to break up the historical structure characterised by numerous interfaces and the segregation of responsibilities. The aim of this paper is to take an independent look at the healthcare supply chain and identify at different levels the core entities, processes, information flows, and system integration challenges which impede supply chain quality improvements to be realised. Moreover, this paper proposes, from an information systems perspective, a framework for the evaluation of different integration technology approaches, which can be used as a potential guideline tool for assessing integration technology alternatives, in order to add value to a healthcare-supply-chain management system. Copyright © 2007 Inderscience Enterprises Ltd.

B2B e-marketplaces in the procurement supply chain of airlines: a strategic direction for the future?:a strategic direction for the future?

With the airline industry experiencing a global economic downturn, B2B e-Business is becoming more and more the focus of airlines’ strategies. More recently, airlines have studied intensively the potential of joint-procurement possibilities and have taken measures in creating consortia-led B2B e-Marketplaces as mediators for aggregating demand and to facilitate transactions. In academic literature, limited academic research has been undertaken in exploring the value creation of B2B e-Marketplace models in the aviation industry. The aim is to conduct a theoretical analysis to explore whether or not e-Marketplaces have the potential to add value to procurement in the aviation industry. The research focuses on the potential of B2B e-Marketplaces in terms of improving an airline’s competitiveness in its procurement value chain. The theoretical framework adopted supports the identification of barriers to success and critical success factors.

A globális értékláncok – a multinacionális vállalat, mint globális gyár. Fejezetek a nemzetközi üzleti gazdaságtanból 6. ----- It's title in English: Global Value Chains – Multinational Enterprise as Global Factory. Chapters from International Business 6

A tanulmánykötet a globális értékláncok névvel fémjelezett jelenséget veszi górcső alá. A fókuszban a multinacionális vállalatcsoportok ill. a nemzetközi cégek állnak. A tíz tanulmány különböző megközelítések alapján betekintést ad abba, hogy hogyan ragadhatják meg és vizsgálhatják a kutatók a globális értékláncokat a vállalatok, ill. vezetőik nézőpontjából, mi következik a kutatási eredményekből a vállalatok vezetői számára, és milyen következményei vannak a globális értékláncok karakteres és terjedő jelenlétének a nemzetgazdaságok gazdasági politikáit formálókra. A tanulmánykötet szerzői a 2012/2013.tanév tavaszi félévében a Nemzetközi üzleti gazdaságtan c. PhD kurzus hallgatói voltak. ______ The working paper is to provide a Hungarian language overview on the research finding s on Global Value Chain and global factory. The phenomenon behind them is recognized but under researched in Hungary. The chapters of the working paper are to cover as many angles and perspectives of Global Value Chain as many it is possible. Each chapter is based on a published English language paper. Theoretical and conceptual issues, considerations of MNEs and small- and medium sized enterprises and that of national policies are discussed. Authors of the working paper attended the International Business PhD course in the spring semester of 2012/2013.

A value-oriented model for managing service supply chains

Service supply chain (SSC) has attracted more and more attention from academia and industry. Although there exists extensive product-based supply chain management models and methods, they are not applicable to the SSC as the differences between service and product. Besides, the existing supply chain management models and methods possess some common deficiencies. Because of the above reasons, this paper develops a novel value-oriented model for the management of SSC using the modeling methods of E3-value and Use Case Maps (UCMs). This model can not only resolve the problems of applicability and effectiveness of the existing supply chain management models and methods, but also answer the questions of ‘why the management model is this?’ and ‘how to quantify the potential profitability of the supply chains?’. Meanwhile, the service business processes of SSC system can be established using its logic procedure. In addition, the model can also determine the value and benefits distribution of the entire service value chain and optimize the operations management performance of the service supply.

Public-Private Partnership Design for Inclusive Cocoa Global Value Chains in Ghana

Within 10 years, there could be a severe global shortage in the supply of cocoa, according to industry practitioners and other experts. Due to global population growth and the emergence of a growing global middle class, by 2025 the cocoa crop would need to increase by nearly 50 per cent to keep up with projected demand. A potential shortage of supply is a direct threat to the business model of lead firms – including cocoa grinders and processors, chocolate confectioners, and retail distributors. But these international firms – the ones that will suffer the most if there is a shortage of cocoa supply – are helping create the market failure that is stifling sustainability. Functioning as a two-tiered consolidated oligopoly with a combined market share of approximately 89%, these firms enjoy the largest portion of value capture in the cocoa-chocolate global value chain (GVC). The smallholder cocoa producers, conversely, are trapped in low value-add segments of the GVC. In fact, most smallholder farmers survive on less than $1.00 per day per capita, on average in many cocoa exporting countries. In Ghana - the second largest producer of cocoa in the world - the government has accomplished little to help these smallholders upgrade and make cocoa an attractive sector for the next generation to inherit. The result – both in Ghana and around the world – is a lack of sustainability of the supply of cocoa. Demand is already beginning to outstrip supply. As a result of these underlying circumstances, the United States Agency for International Development (USAID) has posed the following policy question: "Under what conditions could USAID, as a development agency, support and enhance potential public-private partnerships in order to improve the bargaining power (and financial wherewithal) of smallholder organizations and farmers in the context of the global value chain for cocoa in Ghana?"

Mapping agricultural value chains with international input-output data

In recent years, the analysis of trade in value added has been explored by many researchers. Although they have made important contributions by developing GVC-related indices and proposing techniques for decomposing trade data, they have not yet explored the method of value chain mapping—a core element of conventional value chain analysis. This paper introduces a method of value chain mapping that uses international input-output data and reveals both upstream and downstream transactions of goods and services induced by production activities of a specific commodity or industry. This method is subsequently applied to the agricultural value chain of three Greater Mekong Sub-region countries (i.e., Thailand, Vietnam, and Cambodia). The results show that the agricultural value chain has been increasingly internationalized, although there is still room for obtaining benefits from GVC participation, especially in a country such as Cambodia.

Applicazione ed implicazioni della Corporate Sustainability Due Diligence nella Supply Chain: caso studio Fincantieri S.p.A.

La richiesta dei consumatori di prodotti sostenibili, le lotte per il cambiamento climatico e l'importanza che viene data alla sostenibilità dal mondo finanziario hanno fatto sì che la politica intraprendesse iniziative sulle tematiche sostenibili e di conseguenza le imprese hanno adottato azioni in linea con i criteri ESG. Anche se per le aziende intraprendere un percorso sostenibile non sia economicamente conveniente e per raggiungere determinati obiettivi servono sforzi e tempi lunghi, sono consapevoli dei benefici nel medio-lungo termine a livello economico, di reputazione e vantaggio competitivo. Queste iniziative però si concentrano prevalentemente sul primo anello della supply chain e le società che operano in un mercato globale fanno difficoltà a rispettare le differenti norme giuridiche non compatibili negli Stati in cui è presente la propria value chain. Per risolvere questi problemi la della Commissione Europea il 23/02/2022 ha proposto la direttiva sulla Corporate Sustainability Due Diligence, che impone l’obbligo per le imprese di implementare un processo di due diligence in tutta la value chain per prevenire effetti negativi e potenziali sui diritti umani e sull’ambiente. L’obiettivo dell'elaborato è di analizzare la direttiva di due diligence per comprendere quanto le aziende di oggi siano pronte al monitoraggio di un’intera catena del valore. Il caso studio scelto per lo scopo è quello dell’azienda Fincantieri S.p.A. la quale ha intrapreso da qualche anno un percorso di sostenibilità. Attraverso il confronto fra le azioni in atto dell'azienda e la direttiva, dalla trattazione emerge che la sfida più grande che Fincantieri dovrà affrontare sarà la condivisione delle pratiche già in atto nei livelli più profondi della supply chain. L’approvazione della direttiva, incentivando anche indirettamente le aziende ad operare in ottica di sostenibilità, aiuterà a perseguire l'obiettivo di due diligence in un percorso di crescita e miglioramento con i fornitori