Uncovering missing links in global value chain research – and implications for corporate social responsibility and international business

What is it about?

Amidst burgeoning attention for global value chains (GVCs) in international business (IB), this paper identifies a clear “missing link” in this literature, and discusses implications for research and corporate social responsibility (CSR) policy-making and implementation. Import intermediaries are often “hidden” in GVCs but they may significantly impact the organization of production in general, and firms’ CSR commitments in particular. This article indicates the emergence of GVC parallelism with “frontstage” chains managed by lead firms and increasingly exposed to public scrutiny following calls for transparency and CSR, and “backstage” ones in which buyers and intermediaries operate more opaquely. The article emphasises the need for further study into ways in which both lead firms and intermediaries deal with contradicting demands of implementing CSR policies and offering competitive prices with short lead times. It points at salient yet little known practices and actors that influence the organization of production and the implementation of CSR policies in various ways, and therefore offers ground for reflection on the design of proper supply chain and CSR policies.

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