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

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: closed (31 May 2023) | Viewed by 6714

Special Issue Editor


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Guest Editor
Faculty of Business Administration, Laval University, Quebec, QC G1V 0A6, Canada
Interests: globalization of production; Industry 4.0 and global value chain; sustainable value chain; sustainable production and consumption; organization and resilience
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

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

Manuscript Submission Information

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Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • Industrial relocation in the emerging economy
  • Industrial transformation in emerging economies
  • Business collaboration and Sustainability
  • Extended collaboration
  • Coordinated process
  • Special economic zones, 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 environment
  • Corporate social responsibility
  • Multiple tiers of suppliers and Sustainability
  • Sustainability training and accountability

Published Papers (3 papers)

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Research

26 pages, 589 KiB  
Article
Research on the Impact of the Input Level of Digital Economics in Chinese Manufacturing on the Embedded Position of the GVC
by Guangwei Rui and Menggang Li
Sustainability 2023, 15(16), 12468; https://doi.org/10.3390/su151612468 - 16 Aug 2023
Viewed by 901
Abstract
With the development and application of digital technology, the digital economy industry has gradually become the new vitality of China’s economic growth, and it has also become a vital driving force to promote a change in the GVC division of the manufacturing industry. [...] Read more.
With the development and application of digital technology, the digital economy industry has gradually become the new vitality of China’s economic growth, and it has also become a vital driving force to promote a change in the GVC division of the manufacturing industry. This paper takes the embedded position of the GVC in the Chinese manufacturing industry as the research object, places the input level of the digital economy in the manufacturing industry into the analysis framework of the influence of its embedded position in the GVC, puts forward the theoretical mechanism of the influence of the input level of the digital economy on the relative breadth and height of its embedded position in the GVC, and explores the influence of the digital economy on the embedded position of the GVC in the Chinese manufacturing industry from the two levels of relative height and width. Through regression analysis, an intermediary effect test, and threshold regression of panel data, the study found that (1) improving the input level of the digital economy in manufacturing will positively affect the relative height and breadth of the GVC embedding position. (2) The improvement of the input level of the digital economy plays a role through two mechanisms: improving the innovation efficiency of the manufacturing industry, and improving the asset utilization efficiency of the manufacturing industry. The relative height and breadth of the embedded position of the GVC can be promoted through innovative efficiency channels. The captive allocation efficiency channel can promote the relative breadth of the embedded position of the GVC. (3) The influence of the input level of the digital economy on the relative breadth and height of the embedded position of the GVC presents a threshold effect with the technical level, and the influence on the relative height presents a threshold effect with the capital level. By clarifying the influence of the digital economy’s input level on the embedded position of the GVC, some suggestions can be taken to promote the manufacturing industry to move to a high-value acquisition position in the GVC division. Construction can be strengthened from the following aspects: improving the application level of digital technology in the manufacturing industry, strengthening the construction of digital infrastructure, and promoting the innovation system and industrial ecology led by digital technology. Full article
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17 pages, 2087 KiB  
Article
Does Global Value Chain Embedment Contribute to Environmental Pollution in Emerging Economies?
by Guimei Zhang and Guangyue Liu
Sustainability 2023, 15(2), 1031; https://doi.org/10.3390/su15021031 - 5 Jan 2023
Cited by 2 | Viewed by 1477
Abstract
Scientifically judging the environmental effects of embedding in the global value chain (GVC) has important theoretical significance and practical value, especially for emerging economies, but there are few studies on the relationship between GVC embedment and environmental pollution in emerging economies. Based on [...] Read more.
Scientifically judging the environmental effects of embedding in the global value chain (GVC) has important theoretical significance and practical value, especially for emerging economies, but there are few studies on the relationship between GVC embedment and environmental pollution in emerging economies. Based on the classical theory of Grossman, this study analyzed the mechanism framework of GVC embedment on environmental pollution and then used the panel data of 16 emerging economies from 1998 to 2019 for empirical tests. After using the FGLS regression model and a series of empirical tests, the main conclusions are as follows. (1) The impact of GVC embedment on environmental pollution in emerging economies includes five effects. The scale effect brings about the expansion of production activities and increases the emission of environmental pollutants. The technological effect refers to improvements in the level of clean technology, which are brought about by the acquisition and acceptance of “technology spillover” in the value chain. The structural effect is the reduction in pollutant emissions and improvement in the environment through economic upgrading. The income effect is a “demand push” to improve the environment and reduce pollution triggered by an increase in national income. The lock-in effect means that the leaders of the value chain hinder emerging economies from achieving high-level economic upgrades, intending to lock them into the links with relatively high pollution. These effects are not static but are interlinked and affect each other. (2) The results of the empirical study show that embedding in the GVC initially has a negative impact on the environment, but with the deepening of GVC embedment, environmental pollution will decrease; that is, it shows an inverted U-shaped relationship. (3) The density of energy use, the share of fossil fuels, and the per capita income of emerging economies are positively correlated with environmental pollution, while population density and manufacturing share are negatively correlated. This study also provides suggestions on how to improve the environment in the process of GVC embedment in the future. Full article
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17 pages, 665 KiB  
Article
Sustainable Production Clauses and Positioning in the Global Value Chain: An Analysis of International Investment Agreements (IIA) of the ICT Industry in Developing and Developed Markets
by Qi Meng, Muhammad Mohiuddin and Yuliang Cao
Sustainability 2022, 14(4), 2396; https://doi.org/10.3390/su14042396 - 19 Feb 2022
Cited by 2 | Viewed by 2445
Abstract
Positioning in the global value chain (GVC) reflects the level and kinds of value creation of a firm or industry. The value creation can be on the upstream or downstream of the value chain. This study explores the effects of sustainable production clauses [...] Read more.
Positioning in the global value chain (GVC) reflects the level and kinds of value creation of a firm or industry. The value creation can be on the upstream or downstream of the value chain. This study explores the effects of sustainable production clauses on the economic and physical positioning of information and communication technology (ICT) firms in the global value chain (GVC). We examined 2107 international investment agreements (IIA), signed by 54 countries that represent 70% of the global investment agreements. The empirical results show that the sustainable production intensity clauses in the IIAs have a significant impact on the positioning of ICT’s in the GVC. However, the degree of impact on the economic scale of participation and physical location in the GVC differs. The heterogeneity test shows that the sustainable production intensity clauses of IIAs between developed and developing countries affect positively and significantly the physical and economic locations in the GVCs. This is less significant while the IIAs are signed between the developed markets. These findings demonstrate that countries should consider sustainable production principles and responsible business conducts while signing the IIAs, and ensure their implementation while participating in the GVCs. This process can enhance value creation by moving towards higher value creation activities within the GVC. Full article
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