The Quest for Regionalization of Global Value Chains in a Pandemic Global Business Environment

Jurgita Sekliuckiene; Egidijus Rybakovas

doi:10.5755/j01.ee.34.2.31640

Authors

Jurgita Sekliuckiene Kaunas University of Technology, Lithuania https://orcid.org/0000-0001-8899-3112
Egidijus Rybakovas Kaunas University of Technology, Lithuania https://orcid.org/0000-0001-9530-9278

DOI:

https://doi.org/10.5755/j01.ee.34.2.31640

Keywords:

Global Value Chain, Governance, Regionalization, Apparel Industry

Abstract

Covid - 19 has affected global value chains (GVCs) and firms’ behaviours within GVCs to a large extent. Firms need to find flexible solutions to stabilize production and rethink value chain governance and supplier relationships. Thus, GVCs recover from the initial shock, and the GVCs reconfiguration becomes essential for managers. We reviewed recent literature focusing on the GVCs, the role of governance and Covid – 19 effects on it as well as the regionalization trend. Thus, this study aims to give empirical evidence on the reconfiguration of GVCs, particularly the changes in the structure of suppliers in the global apparel industry, by using the Bloomberg Supply Chain Analysis tool in the period of 2017-2021. We analysed the structural changes in selected leading apparel multinational companies’ GVCs - Industria de Diseno Textil, S.A. (Inditex), Hennes &Mauritz AB (H & M) and adidas AG. The findings provide insights on the current state of the theoretically discussed and widely expected regionalization trend in GVCs. The study concludes that two out of three cases provide evidence indicating an ongoing trend toward GVCs regionalization. The contribution of this study consists of empirical evidence of the changes in GVCs supplier structure in the apparel industry in response to pandemic global business environment. Practical implications and recommendations for businesses and policy makers are related to the revealed theories and testable models by using Bloomberg’s Supply Chain Analysis data and linking causes and effects of the GVCs regionalization processes.

Author Biographies

Jurgita Sekliuckiene, Kaunas University of Technology, Lithuania

Jurgita Sekliuckiene, PhD, Professor of International Business at School of Economics and Business, KTU. She is a member of Academy of International Business (AIB), European International Business Academy (EIBA), an executive Board member of the AIB-CEE chapter. Research interests are in the areas of international entrepreneurship and innovation, business internationalization, export strategies, networks, with a special interest in INVs and multinationals. ORCID iD: https://orcid.org/0000-0001-8899-3112

Egidijus Rybakovas, Kaunas University of Technology, Lithuania

Egidijus Rybakovas, Researcher. Has an educational background in social sciences, business and management. PhD degree from the Kaunas University of Technology in 2009. His work experience covers research and lectures on international competitiveness, international value chains’ management and development, strategic management and strategic analysis, social research methodology, quantitative and qualitative research methods subjects. ORCID iD: https://orcid.org/0000-0001-9530-9278.