Integrating structure, conduct and performance into value chain analysis
In: Journal on Chain and Network Science2School of Economics, Administration, Actuarial Sciences and Accounting, Federal University of Ceará, Av. da Universidade 2486, 60.120-180, Fortaleza, Brazil
Search for other papers by H.S. de Figueirêdo Junior in
Current site
Google Scholar
Search for other papers by M.P.M. Meuwissen in
Current site
Google Scholar
Search for other papers by A.G.J.M. Oude Lansink in
Current site
Google Scholar
Abstract
Value chain analysis has been adopted by several research and funding institutions for analysing local development opportunities. Development practitioners, however, are still looking for more solid grounds for value chain strategy development, especially since the expected outcomes of interventions, such as poverty reduction, have been unclear. This paper aims to extend the Structure-Conduct-Performance (SCP) framework to connect value chain strategies, such as product, market, technology and governance choices, to outcomes with respect to local development. The extended SCP framework is developed through a literature review and an analysis of structure, conduct and performance aspects and their interactions. In this extended value chain SCP framework, the unit of analysis is not a firm, but a portion of a value chain in a territory, a local netchain, competing against another netchain elsewhere. The proposed value chain SCP framework highlights categories of structure, conduct and performance for value chains and provides an integrated approach to explore possible interactions among those categories. The use of the value chain SCP framework will help practitioners to evaluate different policy interventions. The application of this framework to devise strategies for several value chains is expected in future research, as well as the inclusion of social and environmental conduct and performance categories.
-
Altenburg, T., 2007. Donor approaches to supporting pro-poor value chains. Report prepared for the Donor Committee for Enterprise Development Working Group on Linkages and Value Chains. German Development Institute, Bonn, Germany. Available at: http://www.value-chains.org/dyn/bds/docs/568/DonorApproachestoPro-PoorValueChains.pdf.
-
Archer, A.A., P.J. Thorburn, P.A. Hobson and A.J. Higgins, 2008. Evaluating alternate strategic options for agricultural value chains. Journal on Chain and Network Science, 8(2): 131-141.
-
Barney, J.B., 2001. Resource-based theories of competitive advantage: a ten-year retrospective on the resource-based view. Journal of Management, 27: 643-650.
-
Barrientos, S., G. Gereffi and A. Rossi, 2011. Economic and social upgrading in global production networks: a new paradigm for a changing world. International Labour Review, 150(3-4): 319-340.
-
Bolwig, S., S. Ponte, A. Toit, L. Riisgaard and N. Halberg, 2010. Integrating poverty and environmental concerns into value-chain analysis: a conceptual framework. Development Policy Review, 28(2): 173-194.
-
Bresnahan, T.F., 1989. Empirical studies of industries with market power. In: Schmalensee, R. and R.D. Willig (eds.) Handbook of industrial organization, vol. II. Elsevier, Amsterdam, the Netherlands, pp. 1011-1057.
-
Campbell, R., 2013. Feed the future learning agenda literature review: expanded markets, value chains and increased investment. Prepared for the U.S. Agency for International Development. Available at: http://agrilinks.org/sites/default/files/resource/files/FTF%20FEEDBACK%20Value%20Chains%20Theme%20Lit%20Review_Jul1_2013%20(1).pdf.
-
Cattaneo, O., G. Gereffi and C. Staritz (eds.), 2010. Global value chains in a postcrisis world: a development perspective. The World Bank, Washington, DC, USA, 416 pp.
-
Coe, N., P. Dicken and M. Hess, 2008. Global production networks: realizing the potential. Journal of Economic Geography, 8(3): 271-295.
-
Copeland, T., T. Koller and J. Murrin, 2000. Valuation: measuring and managing the value of companies. John Wiley & Sons, Inc./McKinsey & Company, Inc., New York, NY, USA.
-
Coronado, J.J.A., J. Bijman, S.W.F. Omta and A.G.J.M. Oude Lansink, 2010. Relationship characteristics and performance in fresh produce supply chains: the case of the Mexican avocado industry. Journal on Chain and Network Science, 10(1): 1-15.
-
Correa, M. and R. Campbell, 2008. Using the value chain approach to design a competitiveness strategy. USAID Briefing Paper. Available at: http://pdf.usaid.gov/pdf_docs/PNADN465.pdf.
-
Coudouel, A., J.S. Hentschel and Q.T. Wodon, 2002. Poverty measurement and analysis. In: PRSP Sourcebook. World Bank, Washington, DC, USA, pp. 29-70. Available at: http://siteresources.worldbank.org/INTPRS1/Resources/383606-1205334112622/5467_chap1.pdf.
-
Drost, S., J. van Wijk and S. Vellema, 2011. Development value chains meet business supply chains: the concept of global value chains unravelled. EconPapers Working paper 2011/08. Available at: http://econpapers.repec.org/paper/msmwpaper/2011_2f08.htm.
-
Figueirêdo Junior, H.S. and A.D. Sostowski, 2010. Competitividade de cadeias produtivas através de uma lente comparativa: oportunidades para a cajucultura brasileira. Revista Econômica do Nordeste, 41(4): 741-762 (in Portuguese).
-
Foreign Investment Advisory Service (FIAS), 2007. Moving towards competitiveness: a value chain approach. The World Bank Group, Washington, DC, USA.
-
Gereffi, G., J. Humphrey and T. Sturgeon, 2005. The governance of global value chains. Review of International Political Economy, 12(1): 78-104.
-
Giuliani, E., C. Pietrobelli and R. Rabellotti, 2005. Upgrading in global value chains: lessons from Latin American clusters. World Development, 33(4): 549-573.
-
Green, K.W. Jr., P.J. Zelbst, J. Meacham and V.S. Bhadauria, 2012. Green supply chain management practices: impact on performance. Supply Chain Management, 17(3): 290-305.
-
Gulati, R., N. Nohria and A. Zaheer, 2000. Strategic networks. Strategic Management Journal, 21: 203-215.
-
Helmsing, A.H.J. and S. Vellema, 2011. Governance, inclusion and embedding: raising issues. In: Helmsing, A.H.J. and S. Vellema (eds.) Value chains, social inclusion and economic development: contrasting theories and realities. Routledge, London, UK, pp. 1-17.
-
Hill, T. and R. Westbrook, 1997. SWOT analysis: it’s time for a product recall. Long Range Planning, 30(1): 46-52.
-
Humphrey, J. and H. Schmitz, 2000. Governance and upgrading: linking industrial cluster and global value chain research. IDS Working Paper No. 120. Institute of Development Studies/University of Sussex, Brighton, UK.
-
Humphrey, J. and H. Schmitz, 2002. How does insertion in global value chains affect upgrading in industrial clusters? Regional Studies, 36: 1017-1027.
-
Humphrey, J. and L. Navas-Alemán, 2010. Value chains, donor interventions and poverty reduction: a review of donor practice. IDS Research Report No. 63. Institute of Development Studies/ University of Sussex, Brighton, UK.
-
Kaplinsky, R. and M. Morris, 2001. A handbook for value chain research. Prepared for the International Development Research Centre (IDRC). Available at: http://www.globalvaluechains.org/ docs/VchNov01.pdf.
-
Klint, M.B. and U. Sjöberg, 2003. Towards a comprehensive SCP-model for analysing strategic networks/alliances. International Journal of Physical Distribution & Logistics Management, 33(5): 408-426.
-
Kula, O., J. Downing and M. Field, 2006. Value chain programmes to integrate competitiveness, economic growth and poverty reduction. Small Enterprise Development, 17(2): 23-35.
-
Lambert, D.M. and M.C. Cooper, 2000. Issues in supply chain management. Industrial Marketing Management, 29(1): 65-83.
-
Lastres, H.M.M. and J.E. Cassiolato, 2005. Innovation systems and local productive arrangements: new strategies to promote the generation, acquisition and diffusion of knowledge. Innovation: Management, Policy & Practice, 7(2/3): 172-187.
-
Lazzarini, S.G., F.R. Chaddad and M.L. Cook, 2001. Integrating supply chain and network analyses: the study of netchains. Journal on Chain and Network Science, 1(1): 7-22.
-
Match Maker Associates Ltd., 2012. A learning case of a local value chain – the banana subsector in Arusha municipality and Arumeru district: producing banana beverages. In: Van Dijk, M.P. and J.H. Trienekens (eds.) Global value chains: linking local producers from developing countries to international markets. Amsterdam University Press, Amsterdam, the Netherlands, pp. 251-272.
-
Ménard, C., 2005. A new institutional approach to organizations. In: Ménard, C. and M.M. Shirley (eds.) Handbook of new institutional economics. Springer, Dordrecht, the Netherlands, pp. 281-318.
-
Mitchell, J., A. Shepherd and J. Keane, 2011. An introduction. In: Mitchell, J. and C. Coles (eds.) Markets and rural poverty: upgrading in value chains. Earthscan, London, UK, pp. 1-15.
-
Möller, K., A. Rajala and S. Svahn, 2005. Strategic business nets – their type and managment. Journal of Business Research, 58(9): 1274-1284.
-
Morrison, A., C. Pietrobelli and R. Rabellotti, 2008. Global value chains and technological capabilities: a framework to study learning and innovation in developing countries. Oxford Development Studies, 36(1): 39-58.
-
Nadvi, K., 2004. Globalisation and poverty: how can global value chain research inform the policy debate? IDS Bulletin, 35(1): 1-13.
-
Organisation for Economic Co-operation and Development (OECD), 2003. OECD environmental indicators: development, measurement and use, reference paper. Environmental Performance and Information Division, Organization of Economic Co-operation and Development, Paris, France.
-
Porter, M.E., 1980. Competitive strategy. The Free Press, New York, NY, USA.
-
Porter, M.E., 1990. The competitive advantage of nations. Harvard Business Review, March-April: 73-91.
-
Porter, M.E., 1998. On competition, Harvard Business School Publishing, Boston, MA, USA.
-
Ritter, T., I.F. Wilkinson and W.J. Johnston, 2004. Managing in complex business networks. Industrial Marketing Management, 33: 175-183.
-
Rodrik, D., 2004. Industrial policy for the twentieth-first century. John F. Kennedy School of Government. Harvard University, Boston, MA, USA.
-
Roduner, D., 2007. Donor interventions in value chain development. Working paper. Swiss Agency for Development and Cooperation (SDC), Berne, Switzerland.
-
Ruben, R. and G. Zuniga, 2011. How standards compete: comparative impact of coffee certification schemes in Northern Nicaragua. Supply Chain Management, 16(2): 98-109.
-
Scherer, F.M. and D. Ross, 1990. Industrial market structure and economic performance. Houghton Mifflin, Boston, MA, USA.
-
Stoian, D., J. Donovan, J. Fisk and M.F. Muldoon, 2012. Value chain development for rural poverty reduction: a reality check and a warning. Enterprise Development and Microfinance, 23(1): 54-69.
-
Stuckey, J., 2008. Enduring ideas: the SCP framework. McKinsey Quarterly, July: 126. Available at: https://www.mckinseyquarterly. com/Strategy/Strategic_Thinking/Enduring_ideas_The_SCP_ Framework_2169.
-
Teece, D.J., 2007. Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28: 1319-1350.
-
Ton, G., S. Vellema and M.D.R. de Wildt, 2011. Development impacts of value chain interventions: how to collect credible evidence and draw valid conclusions in impact evaluations? Journal on Chain and Network Science, 11(1): 69-84.
-
Trienekens, J.H., 2011. Agricultural value chains in developing countries: a framework for analysis. International Food and Agribusiness Management Review, 14(2): 51-82.
-
Van Dijk, M.P. and J.H. Trienekens, 2012. Global value chains: an overview of the issues and concepts. In: Van Dijk, M.P. and J.H. Trienekens (eds.) Global value chains: linking local producers from developing countries to international markets. Amsterdam University Press, Amsterdam, the Netherlands, pp. 9-30.
-
Webber, C.M. and P. Labaste, 2010. Building competitiveness in Africa’s agriculture: a guide to value chain concepts and applications. The World Bank, Washington, DC, USA. Available at: http://siteresources.worldbank.org/INTARD/Resources/ Building_Competitiveness_in_Africa_Ag.pdf.
-
Wong, C., H. Skipworth, J. Godsell and N. Achimugu, 2012. Towards a theory of supply chain alignment enablers: a systematic literature review. Supply Chain Management, 17(4): 419-437.
| All Time | Past 365 days | Past 30 Days | |
|---|---|---|---|
| Abstract Views | 0 | 0 | 0 |
| Full Text Views | 421 | 328 | 19 |
| PDF Views & Downloads | 566 | 365 | 15 |
Integrating structure, conduct and performance into value chain analysis
In: Journal on Chain and Network Science2School of Economics, Administration, Actuarial Sciences and Accounting, Federal University of Ceará, Av. da Universidade 2486, 60.120-180, Fortaleza, Brazil
Search for other papers by H.S. de Figueirêdo Junior in
Current site
Google Scholar
PubMed
Search for other papers by M.P.M. Meuwissen in
Current site
Google Scholar
PubMed
Search for other papers by A.G.J.M. Oude Lansink in
Current site
Google Scholar
PubMed
Abstract
Value chain analysis has been adopted by several research and funding institutions for analysing local development opportunities. Development practitioners, however, are still looking for more solid grounds for value chain strategy development, especially since the expected outcomes of interventions, such as poverty reduction, have been unclear. This paper aims to extend the Structure-Conduct-Performance (SCP) framework to connect value chain strategies, such as product, market, technology and governance choices, to outcomes with respect to local development. The extended SCP framework is developed through a literature review and an analysis of structure, conduct and performance aspects and their interactions. In this extended value chain SCP framework, the unit of analysis is not a firm, but a portion of a value chain in a territory, a local netchain, competing against another netchain elsewhere. The proposed value chain SCP framework highlights categories of structure, conduct and performance for value chains and provides an integrated approach to explore possible interactions among those categories. The use of the value chain SCP framework will help practitioners to evaluate different policy interventions. The application of this framework to devise strategies for several value chains is expected in future research, as well as the inclusion of social and environmental conduct and performance categories.
| All Time | Past 365 days | Past 30 Days | |
|---|---|---|---|
| Abstract Views | 0 | 0 | 0 |
| Full Text Views | 421 | 328 | 19 |
| PDF Views & Downloads | 566 | 365 | 15 |
