Developing Sustainable Global Value Chain (GVC) in an Era of Digital Transformation and Crises

Dear Colleagues,

Though research on the global value chain (GVC) for the last three decades has focused on the low cost global production network and has been based on purely economic factors, the advancement of digital technologies such as Industry 4.0 and big data have transformed the way manufacturing, as well as services, production, and consumption, are taking place.  They are forcing managers to re-organize business activities (Slimane et al., 2023). The geo-strategic and geo-economic dynamics, as well as natural phenomena, have further disrupted the global supply chain. The new context calls for re-organization of GVC activities, decoupling, or further collaboration of global supply chains. Phenomena like backshoring, reshoring, nearshoring, friendshoring, and democratic shoring have continued to rise in business managers’ and policy makers’ agendas. In this new scenario of business eco-systems, advanced technologies, and geo-politics, how managers and policy makers formulate their strategies for re-organizing GVC activities for sustainable supply chains has become an important issue to explore and understand for effective policy-making processes.

Globalization, automation, digitalization, and fine slicing of the value chain have enabled firms to spread their activities worldwide regardless of borders, cultures, and societies. Various factors have played an important role in dispersing value chain activities worldwide (Mohiuddin & Su, 2013). The relationship between client firms and suppliers was previously mostly linear and based on cost reduction or efficiency strategy. Suppliers provided services and components for clients based on specific instructions from the clients. There was no or little co-creation of value, except utilization of low-cost labor force or flexible legal systems providing free maneuvering of large client firms in the developing markets. Trade wars, natural disasters, public health, and many other socio-economic and political issues have changed the perception of global linear value chain activities. There are, however, opportunities for strategic value creation in global value chain activities where a growth strategy is adopted (Mohiuddin, 2014). Firms can create an environment of co-opetition and co-create value by strategically engaging both suppliers and clients in production, research & development, designing, planning, and prototyping the product. Collaborative efforts can enhance dynamic capabilities and create sustainable value chains. By working closely with value chain partners and other key stakeholders, companies can discover optimal solutions and drive impactful action (Villena and Gioia, 2020).

Despite the emerging global trade challenges and increasing competition among the leading trading partners, the global value chain offers many advantages for both client and supplier firms. Many emerging economies are maturing and demonstrating their capabilities in science and technology. They have gradually become original equipment manufacturers (OEM) & original design manufacturers (ODM) and are developing many high tech products and services from being suppliers of standard components. Advanced emerging economies such as China, India, and Vietnam, in collaboration with other emerging economies, can develop a sustainable global/regional production network. There is an increased awareness among firms, individuals, and policymakers of sustainability. A collaborative approach can facilitate innovative emerging business models to achieve this objective. It can coordinate among manufacturers (suppliers and clients), retailers, NGOs, academics, and so on to create a shared vision and achieve desired outcomes in natural resource consumption, waste management, and human capital development. Such collaboration might focus on business processes and outcomes. They help change the way we do business from self-interest to collective interest by creating productive competition and developing trust among the stakeholders. Little research has been undertaken by focusing on the sustainable value chain's relevant issues in the emerging economy context. The current call for papers' objective is to explore the different facades of global value chain (GVC) in the era of technological advancements such as Industry 4.0 and artificial intelligence, as well as supply chain decoupling. Collaborations  among suppliers and clients in the emerging markets can co-create values and sustainability. The new value co-creation needs to find ways to simultaneously preserve and protect the natural commons and unleash their vast untapped potential (Nidumolu, Ellison, Whalen, and Billman, 2014). We hope prospective authors will explore all the above mentioned issues and create bridges among the apparently disjointed topics.

In this Special Issue, original research articles and reviews are welcome. Research areas may include (but are not limited to) the following:

• Technology, production systems, and organization;
• Cyber physical systems and global value chains;
• Internet of things (IoT) and global value chains;
• Industry 4.0 and location choice;
• Industry 4.0 and global value chains;
• Industry 4.0 and reshoring;
• Reshoring, backshoring, and offshoring;
• Advanced technology and re-organization of global value chains;
• Sustainable global Supply chains;
• Corporate environmental, social, and governance (ESG) and value chains;
• Circular economy and global value chains;
• Industrial relocation in the emerging economy;
• Industrial transformation in emerging economies;
• Business collaboration and sustainability;
• Coordinated production process;
• Special economic zones (SEZ), cluster, and innovation coordinated outcomes;
• Vertical disintegration and value creation;
• Sustainable offshore outsourcing;
• Sustainable supply network;
• Regional production network (RPN);
• Social and environmental compliance;
• Sustainable business practices;
• Sweatshops and hazardous work environments;
• Corporate social responsibility in the global value chain;
• Multiple tiers of suppliers and sustainability;
• Sustainable production and consumption ;
• Organizational capability and resilience to uncertain global crises.

We look forward to receiving your contributions.

References

1. Ed-Dafali, S., Al-Azad, M. S., Mohiuddin, M., & Reza, M. N. H. (2023). Strategic orientations, organizational ambidexterity, and sustainable competitive advantage: Mediating role of industry 4.0 readiness in emerging markets. Journal of Cleaner Production, 401, 136765.
2. Nidumolu, Ram, Jib Ellison, John Whalen, and Erin Billman. "The collaboration imperative." Harvard business review 92, no. 4 (2014): 76-84.
3. Mohiuddin, M., & Su, Z. (2013). Offshore outsourcing of core and non-core activities and integrated firm-level performance: An empirical analysis of Québec manufacturing SMEs. M@n@gement, (4), 454-478.
4. Mohiuddin, M. (2014). Towards sustainable offshore outsourcing: an empirical study on canadian manufacturing small and medium size firms (Doctoral dissertation, Université Laval), Quebec, Canada.
5. Villena, V. H., & Gioia, D. A. (2020). A more sustainable supply chain. Harvard Business Review, 98(2), 84-93.
6. Nidumolu, Ram, Jib Ellison, John Whalen, and Erin Billman. "The collaboration imperative." Harvard business review 92, no. 4 (2014): 76-84.

Dr. Muhammad Mohiuddin
Guest Editor

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• Industry 4.0 and sustainable global value chain
• advanced technology
• efficiency
• manufacturing
• sustainable global supply chain
• resilience