Upgrading and Reconstruction of Global Value Chain: Case of Chinese Firm’s Catching Up Trajectory
DOI:
https://doi.org/10.22452/IJIE.vol15no4.3Keywords:
Global value chain, High-value position, Innovation, Upgrading, ChinaAbstract
This study aims to evaluate and, more importantly, examine the path of a
successful young Chinese high-tech firm in upgrading and reconstructing its position
in the global value chain (GVC) of the chip industry. We examine the existing GVC
positions of chip firms, the motivations for the firm’s entry into the market, the choice
of path to upgrading, and the attempt to restructure the GVCs. The study uses a
qualitative approach, mainly interviews and secondary data. The findings suggest that
devising and consistently implementing a targeted differentiation strategy, overcoming
technological bottlenecks and developing products towards a high-value location, and
targeting customers through open innovation and entrepreneurship are key for laggards
to improve their position in the GVCs. Building an ecological alliance based on the
existing ecosystem is an important means for upgrading a firm and rebuilding the GVC.
This is possible for young firms in the emerging segments of Industry 4.0, which are
moving into a highly digitised world where there are numerous market opportunities both
internally and globally. We argue that the ability to upgrade requires not only internal
capabilities, but also the creation of appropriate markets to support the development of
capabilities. Our study also provides some managerial implications.
Downloads
Downloads
Published
How to Cite
Issue
Section
License
Submission of a manuscript implies: that the work described is original, has not been published before (except in the form of an abstract or as part of a published lecture, review, or thesis); that is not under consideration for publication elsewhere; that its publication has been approved by all co-authors, if any, as well as tacitly or explicitly by the responsible authorities at the institution where the work was carried out. Transfer of copyright to the University of Malaya becomes effective if and when the article is accepted for publication. The copyright covers the exclusive right to reproduce and distribute the article, including reprints, translations, photographic reproductions, microform, electronic form (offline and online) or other reproductions of similar nature.
An author may self-archive the English language version of his/her article on his/her own website and his/her institutions repository; however he/she may not use the publishers PDF version which is posted on www.ijie.um.edu.my. Furthermore, the author may only post his/her version, provided acknowledgement is given to the original source of publication and a link must be accompanied by the following text: The original publication is available at www.ijie.um.edu.my.
All articles published in this journal are protected by copyright, which covers the exclusive rights to reproduce and redistribute the article (e.g. as offprint), as well as all translation rights. No material published in this journal may be reproduced photographically or stored on microfilm, in electronic database, video disks, etc., without first obtaining written permission from the publishers. The use of general descriptive names, trade names, trademarks, etc., in this publication, even if not specifically identified, does not imply that these names are not protected by the relevant laws and regulations.
The copyright owners consent does not include copying for general distribution, promotion, new works, or resale. In these cases, specific written permission must first be obtained from the publishers.
