Seminario del laboratorio LEM "When Suppliers Climb the Value Chain: A Theory of Value Distribution in Vertical Relationships"
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Il seminario "When Suppliers Climb the Value Chain: A Theory of Value Distribution in Vertical Relationships" con il Prof. Brian Wu (University of Michigan) si terrà il 26 settembre alle 12 in aula 3. E' organizzato dal Laboratorio LEM dell'Istituto di Economia.
Abstract
Through supplying multinational corporations (MNCs) suppliers in emerging markets can accumulate capabilities to climb the value chain, and ultimately compete with MNCs in the product market. We build an analytical model to examine the impact of such value chain climbing on value distribution in vertical relationships. We identify a set of dominant relationships, and investigate how the choice among these relationships is influenced by firms’ relative competitiveness on the product market, the speed of capability accumulation, financial constraints, and their outside options. We further extend the model to a dynamic setting, examining how the vertical relationships evolve over time. By endogenzing the supplier’s entry into the product market, our study enriches the literatures on vertical relationships, market entry, and the management of global value chain.