Great article, Elvire Regnier! Governance is THE key to cluster development and the globalized supply base.
In 2007, I wrote an article titled “Public Sector Procurement Practice and “The Principles of External Economies, Clustering and the Global Value Chain” – https://bit.ly/3KDKOpq
Here is an excerpt:
“According to Humphrey and Schmitz (2002 “, “value chain research focuses on the nature of the relationships between the various actors involved in the chain and their implications for development.
In the area of non-market relationships, Humphrey and Schmitz identified “three possible types of governance: a) “network implying cooperation between firms of more or less equal power which share their competencies within the chain; b) quasi-hierarchy involving relationships between legally independent firms in which one is subordinate to the other, with a leader in the chain defining the rules to which the rest of the actors have to comply and c) hierarchy when a firm is owned by an external firm.”
I also gave a lecture at “#eWorld on Cluster Development & the Globalized Supply Base (2010) with case studies including Tesco and Walmart – https://bit.ly/3IX3X53
Procurement Insights
What role does governance play in cluster development and the globalized supply base?
Posted on September 28, 2023
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Great article, Elvire Regnier! Governance is THE key to cluster development and the globalized supply base.
In 2007, I wrote an article titled “Public Sector Procurement Practice and “The Principles of External Economies, Clustering and the Global Value Chain” – https://bit.ly/3KDKOpq
Here is an excerpt:
“According to Humphrey and Schmitz (2002 “, “value chain research focuses on the nature of the relationships between the various actors involved in the chain and their implications for development.
In the area of non-market relationships, Humphrey and Schmitz identified “three possible types of governance: a) “network implying cooperation between firms of more or less equal power which share their competencies within the chain; b) quasi-hierarchy involving relationships between legally independent firms in which one is subordinate to the other, with a leader in the chain defining the rules to which the rest of the actors have to comply and c) hierarchy when a firm is owned by an external firm.”
I also gave a lecture at “#eWorld on Cluster Development & the Globalized Supply Base (2010) with case studies including Tesco and Walmart – https://bit.ly/3IX3X53
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