Linking global value chains and supply chain management: evidence from the electric motors industry

The global value chain (GVC) framework and its central concept of governance are increasingly advocated as powerful tools for interpreting managerial issues with particular reference to global supply chain (SC) management. However, a gap still exists about how the GVC concepts, which have been developed at the industry level, can be applied at the company level. The aim of this work is therefore to investigate how the concepts of GVC structure and governance are related to the way the SC is managed. Several research propositions drawn from the literature are investigated by means of seven case studies in the electric motors industry. The results show that the GVC can be a useful framework for understanding and deploying SC management at the company level. Moreover, the analysis of the governance modes provides an effective tool to explain the existing degree of technological and operational collaboration in the SC. Finally, we show the importance of considering such contextual factors as company size and the competitive priorities of the company to move seamlessly between the GVC, at the industry level, and SC management, at the company level.