Integration of African firms into global value chains
A comparison of Finnish and Chinese firms’ sourcing from Africa
Bibliographic Data
| ID | 15539193 |
|---|---|
| Authors | Weimu You (0000-0002-9159-6238, corresponding author), Asta Salmi (0000-0002-6134-2800, Lappeenranta-Lahti University of Technology), Katri Kauppi (0000-0001-5946-0907) |
| Year | 2017 |
| Volume | 14 |
| Issue | 2/3 |
| Pages | 252-281 |
| Publication date | 2017-12-04 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Critical Perspectives on International Business (JOURNAL) |
| Journal identifiers | ISSN: 1742-2043 • E-ISSN: 1758-6062 |
| Publisher | Emerald Publishing Limited (PUBLISHER • GB) |
| DOI | 10.1108/cpoib-11-2016-0056 |
| OpenAlex | W2774204389 |
| Language | EN |
| Citations received | 1 |
| References cited | 52 |
Purpose This paper aims to analyze the roles that African suppliers play in global value chains and the strategies that foreign firms adopt to integrate African firms into their supply chains. Design/methodology/approach The empirical research of this paper is based on a multiple case study and on interview data of foreign buyers and their entry into African supply markets: five Finnish companies and five Chinese companies were interviewed in 2014-2015. Findings The authors find that Finnish firms make relatively small investments and start sourcing operations on a small scale, whereas Chinese firms are running large infrastructural projects, relying on local sourcing. African firms typically only play modest roles with little value capture in the chain, supplying raw materials and simple products. The African infrastructural and cultural context makes it challenging for foreign firms to provide local suppliers with more strategic roles in their chains, thus hindering integration of local firms into global value chains. Originality/value This paper is one of the first to offer a comparison of Finnish (Western) and Chinese (other emerging economy) firms’ sourcing from Africa and provides understanding of the role of African suppliers in current value chains. The authors offer a qualitative exploration of why companies invest in African suppliers and of the scope of African presence in global value chains
Business · Commerce · Comparative advantage · Context (archaeology · Emerging markets · Global value chain · Industrial organization · International trade · Originality · Qualitative research · Scope (computer science · Sociology · Supply chain · Value (mathematics · Value chain · Global trade, sustainability, and social impact · Innovation and Socioeconomic Development · International Development and Aid · Marketing
Institutions, resources, and entry strategies in emerging economies
Case Study Research
Why the World Suddenly Cares About Global Supply Chains
Australia-China-Africa investment partnerships
The mirage of upgrading local automotive parts suppliers through the creation of vertical linkages with MNEs in developing economies
China in Africa
Global value chains, rising power firms and economic and social upgrading
Location, control and innovation in knowledge-intensive industries
The governance of global value chains
China's Private Enterprises in Africa and the Implications for African Development
Governance Patterns in Value Chains and their Development Impact
Staying alive in the global automotive industry
Globalization and the Death of the Local Firm? The Automobile Components Sector in South Africa
A profile of the operations of Chinese multinationals in Africa
Explaining governance in global value chains
Governing global value chains
| Citations per year | 0.2 |
|---|---|
| Citation span | 2021 - 2021 (1) |
| Highly cited | No |