Value Chain Sustainability: Collaboration the Key to Success for Emerging Countries

Dear Colleagues, 

Globalization, automation, digitalization, and fine slicing up of the value chain have enabled firms to spread their activities worldwide regardless of borders, cultures, and societies. Various factors played an important role in dispersing value chain activities worldwide (Mohiuddin & Su, 2013). The relationship between client firms and suppliers was 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. Trade war, natural disasters, public health, and many other social issues have changed the perception about the global linear value chain activities. There are, however, opportunities for strategic value creation in the global value chain activities where a growth strategy is adopted (Mohiuddin & Su, 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 (Jennifer Hermes, 2012; 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 its capability in science and technology. They have gradually become an original equipment manufacturer (OEM) & original design manufacturer (ODM) and developing many high tech products and services from being suppliers of standard components. Advanced emerging economies such as China, South Korea and Singapore in collaboration with other emerging economies, can develop a sustainable global/ regional production network. There is an increased awareness among the firms, individuals, and policymakers of Sustainability. A collaborative approach can facilitate innovative emerging business models to achieve this objective. It can coordinate among the 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 developement. 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 value chain collaborations in the emerging markets and co-create values and Sustainability. The new value co-creation needs to find ways to preserve and protect the natural commons and unleashing their vast untapped potential simultaneously (Nidumolu, Ellison, Whalen, and Billman, 2014). 

Prof. Dr. Muhammad Mohiuddin
Guest Editor

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