Building and joining a supply chain are different and why it matters. Korzeniewicz eds, commodity chains and global capitalism, westport, ct. Commodity chains link the processes of manufacturing that result in a final product available for individual consumption. Open international trade has encouraged nations to specialize in different. How us retailers shape overseas production networks, in gereffi, g. The purpose of the introduction is to provide some basic concepts regarding global commodity chains gccs, and to orient the reader to the scope. The literature on the rubber boom applied a dependendist view of rubber production in the brazilian amazon.
Buyerdriven commodity chains refer to those industries in which large retailers, branded marketers, and branded manufacturers play the pivotal roles in setting up decentralized production networks in a variety of exporting countries, typically located in the third world. Pdf on jan 1, 1994, gary gereffi and others published the organization of buyerdriven global commodity chains. Shifting governance structures in global commodity chains,with. Retailers shape overseas production networks gary gereffi global industrialization is the result of an integrated system of production and trade. One approach is to combine the initial gcc focus on. Much of the debate on commodity chains, the focus of this article, is derived initially from wallersteinian world system theory.
Nike products made in 930 factories subcontractors in 50 countries 1 million workers in supply chain, but just 38,000 direct employees in u. The article concludes that while commodity chain analysis is useful for examining the political economy of tourism, especially in highlighting power and exchange relationships, it must be broadened to account fully for the unique organization of the global tourism industry. It thus has brought to the fore the key role of commodity chains in the relationships of capital, labor, and states. Gereffi, g 1994 the organization of buyerdriven global commodity. The organization of buyerdriven global commodity chains. Existing methodologies in commodity chain analysis. This can be either the producer manufacturer or the buyer. Commodity chains are useful for understanding the widely dispersed industrial production characteristic of contemporary transnational trade as well as the fluidity of the circulation of agricultural and other commodities between producer societies on the global periphery and consumer societies of the global. This cited by count includes citations to the following articles in scholar. A commodity chains framework for analyzing global industries. Predatory purchasing practices in global apparel supply.
The organization of producerdriven and buyerdriven global commodity chains. The industry has a high intensity in technology, capital, and skills and is logistically demanding due to lean manufacturing and the system of. Pdf in global capitalism, economic activity is not only international in scope. This volume develops a new set of conceptual categories for analyzing new patterns of global economic organization. It also identifies striking patterns of industrial consolidation and the tradeoffs this entails for smaller firms in these chains. Producerdriven and buyerdriven global commodity chains in global capitalism, economic activity is not only international in scope, it is also global in organization. In reality, many commodity chains are interconnected the end point of one commodity chain may well be the beginning of another. The international competitiveness of asian economies in. Commodity chain analysis food and agriculture organization. Pdf shifting governance structures in global commodity chains. In this article, we consider the implications of the shifting dynamics of global trade and the greater prominence of southern actors for the conceptualization of global value chains gvcs and global production networks gpns. This was prior to the merger of aol with the cable giant. Characteristics of buyer driven vs producer driven chains distinguish between chains that are producerdriven and buyerdriven. Global commodity chains have three main dimensions.
Different methodologies have been developed for analysis of commodity chains. While the literature has long acknowledged worker rights abuses in global apparel supply chains, less attention has been paid to the recent worsening of certain decent work deficits and its causes, which this article links to predatory purchasing. First, it shows how the organization of usbased food and agricultural value chains shapes the availability, safety, quality, and nutritional value of the food we eat. Some have argued that the more inclusive language of value chains should replace the more specific concept of commodity chain. Identify distinguishing features of conventional food commodity chains. In global capitalism, economic activity is not only international in scope, it is also global in organization. Buyerdriven commodity chains refer to those industries in which large. More recent work has suggested that there are more types of governance than this dualism implies and different chains in the same market for a commodity may exhibit different levels of driveness, that is, not all buyers are lead firms in the same way.
Commodity chains and global capitalism, 1994 online. This book explores the global commodity chains approach, which reformulates the basic conceptual categories for analysing patterns of global organisation and change. In particular, the debate on global commodity chains or, more recently, on global value chains has produced a comprehensive contribution to this conceptual development. Commodity chains, global value chains, production networks, governance.
Both buyerdriven and producerdriven commodity chains are useful in analyzing and evaluating global industries. International trade and industrial upgrading in the. Producer and buyerdriven value chains the geography of. Compare governance relationships in buyerdriven and producerdriven commodity chains. Gereffi, gary 1994, the organization of buyerdriven global commodity chains. The current restructuring of the worldeconomy under global capitalism has further integrated international trade and production. The main features of producerdriven and buyerdriven commodity chains are highlighted in table 1. Pdf a commodity chains framework for analyzing global industries. Buyerdriven commodity chains refer to those industries in which large retailers, marketers, and branded manufacturers play the pivotal roles in setting up decentralized production networks in a. Governance and competitiveness in global value chains. Identify the various kinds of labor involved in each node of food commodity chains. This paper assesses the achievements and limitations of commodity chain research as it has evolved over the last decade. Producerdriven gvcs tend to have high barriers of entry since many commodity chains require capitaltechnologyintensive production and economies of scale, such as in the automobile and aeronautical industries.
Shifting governance structures in global commodity chains, with special reference to the internet. Usbased food and agricultural value chains and their. Retailers shape overseas production networks, in g. First, i highlight an important but generally unacknowledged break between the original worldsystemsinspired tradition of commodity chain research and two subsequent chain approaches, the global commodity chain gcc and global value. During the past decade cuba has become a haven for international sex tourists. This note has been prepared as a complement to the paper global commodity chain. Identify common nodes in conventional food commodity chains. The gvc framework represents just one of many approaches to detailed, firmlevel research on the structure and dynamics of global industries. Frederick stacey and gary gereffi 2009 value chain. Commodity chains are most simply defined as the link between successive processes of manufacturing that result in a final product available for. This article contends that the cuban experience must be understood as part of a set of larger global processes. Pdf the organization of buyerdriven global commodity. The purchase and primary use of a commodity is often assumed to be the end point of the production system or commodity chain.
A global value chain perspective on industrial policy and. Korzeniewicz, in commodity chains and global capitalism, chapter. Producer driven chains are commonly found in industries where large industrial transnational corporations tncs, the producers of. How us retailers shape overseas production networks. Launched in part by the publication of commodity chains and global capitalism gereffi and korczenewics 1994, the global commodity chains gcc and subsquent global value chains gvc approach to economic organization. The organization of producerdriven and buyer driven global com. A commodity chain refers to the whole range of activities involved in the design, production, and marketing of a product see gereffi and korzeniewicz 1994 for an overview of this framework. Characteristics of buyer driven vs producer driven chains. A growing body of research points to the rise of the south and the growth of southsouth trade. Planning meeting of the task force on chinas sustainable development and global markets.
As with traditional supply chain perspectives, the commodity chains framework is based on the flow of goods involved in the production and distribution of. Commodity chains and global capitalism i edited by gary gereffi and. Whereas producerdriven and buyerdriven commodity chains characterize the phases of investmentbased and tradebased globalization, respectively, the. Gvc is similar to industry level value chain but encompasses operations at the global level. First, i discuss the motivations for supplementing the buyerdriven and producerdriven modes of global commodity chain governance developed by gary gereffi in the 1990s with an industryneutral, nonempirical framework. Value chains transforming and distort the globalization debate.
It is characterized by integrated production systems that consist of highly specialized, segmentspecific, vertically organized transnational firms. Global commodity chains and the organizational grounding of. Article information, pdf download for global commodity chains and the organizational. An earlier, but still active body of research on global commodity chains gccs developed a key distinction between global chains that are driven by two kinds of lead firms. The contributors to this volume explore and elaborate the global commodity chains gccs approach, which reformulates the basic conceptual categories for analyzing new patterns of global organization and change.