Competition and Change

This paper assesses the achievements and limitations of commodity chain research as it has evolved over the last decade. The primary objectives are two-fold. First, I highlight an important but generally unacknowledged break between the original world-systems-inspired tradition of commodity chain research and two subsequent chain approaches, the global commodity chain (GCC) and global value chain (GVC) frameworks. Second, I argue that contra the macro and holistic perspective of the world-systems approach, much of the recent chains literature, and particularly the more economistic GVC variant, is increasingly oriented in its analytical approach towards the meso level of sectoral logics and the micro level objective of industrial upgrading. I conclude that closer attention to the larger institutional and structural environments in which commodity chains are embedded is needed in order to more fully inform our understanding of the uneven social and developmental dynamics of contemporary capitalism at the global-local nexus.

In the literature, one finds various explanations for the rise of financialized capitalism. In the different strands of financialization literature, housing either plays a minor role or is simply seen as one of the bearers of financialization. The relations between housing and financialization are under-researched and under-theorized. This article, first, looks at the rise of housing finance as an integral part of macro-economic policy, and second, at the role of financial globalization in the rise of housing finance. Housing is seen as an absorber of a ‘wall of money’, but the absorption of finance by housing is a very uneven process. Four trajectories of national institutional structures are suggested, and it is discussed how capital flows are absorbed in each of these trajectories. Finally, it is discussed what this tells about the geographies of financialized capitalism, and its relations to debt, housing, mortgage markets and the spatial fix.

With increasing fragmentation of production between independent firms that are spatially dispersed and are responsible for different steps of the production process, a Global Value Chain approach is employed to examine how ‘lead firms’ shape the green features of upstream activities. Comparative case studies in the Italian furniture industry (Ikea, Valcucine) are used to show that lead firms implement ‘hands-on’ governing mechanisms to improve the environmental performance of their value chain partners — moving away from the market but still avoiding vertical integration — but also ‘hands-off’ mechanisms embedded in standards and design. Two governing approaches to the greening of value chains are identified: standard-driven and mentoring-driven, and these are used to provide some reflections on when we are likely to observe one or the other, and also to develop a future research agenda.

Buyer firms in the apparel industry are using environmental standards to coordinate their global value chains (GVCs). In turn, supplier firms are complying with environmental standards as a way to increase their competitiveness. This article addresses the nascent gap in the GVC literature in relation to firm- and chain-level responses to environmental concerns, which enable apparel firms to upgrade. The article examines the drivers and conditions under which apparel firms embrace environmental upgrading in Sri Lanka. Findings suggest that GVCs represent both the drivers of environmental upgrading and the means by which to obtain the knowledge needed to upgrade particularly for firms in relational networks. The strategic intent and capability of the suppliers to assimilate the transfer of knowledge and upgrade are critical. However, upgrading does not necessarily yield higher profits for supplier firms. The incentive for upgraded firms to maintain their environmental performance is competitive advantage arising from reduced costs.

Research considering globalized production as taking place within global production networks and global value chains has potential to provide insights into the challenges of sustainable production. However, studies employing these approaches to look at manufactured products have often concentrated on connections between lead buyers and upper tier suppliers and given insufficient attention to exploring interactions across all stages of production. In this article, the concept of extended supplier networks is introduced to address this gap by explicitly looking at how all stages of production are connected. The extended supplier network model that is presented provides an analytical framework that enables multiple scales of analysis in the study of sustainability challenges.