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Evolution in Inter-firm Governance along the Transport Biofuel Value Chain in Four Maritime Silk Road Countries

Evolution in Inter-firm Governance along the Transport Biofuel Value Chain in Four Maritime Silk Road Countries

Chan, Jin ORCID: 0000-0002-6275-9763 and Reiner, David (2018) Evolution in Inter-firm Governance along the Transport Biofuel Value Chain in Four Maritime Silk Road Countries. In: Special Issues Paper Development Workshop, Research Priority of BRI, Institution of Asia and Pacific Studies, University of Nottingham Ningbo China, 24 June 2018, University of Nottingham Ningbo China.

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Belt and Road Initiative is a major endeavour to integrate the economies along both maritime and inland Silk Roads. Nonetheless, the value chains at various countries along the silk roads might be governed under different regimes and thereby the understanding of the governance modes are an initiate step for any attempt to integrate the value chains of any products and services. This article investigates the rapidly expanding transport biofuel value chain in four countries along the Maritime Silk Road. While the global biofuel went through a wave of horizontal and vertical integration during the decade of expansion in 2000s, there is little known about the structure of the value chain of key producers in the Maritime Silk Road and their inter-firm governance. From the Global Value Chain perspective, this article analyses the types and determinants of governance mode in the fuel-ethanol industry in China, Thailand, Vietnam and the Philippines. Eighteen manufacturers have been selected for in-depth multiple-case studies with data from semi-structured interviews.

This article classifies these firms according to their pre-entry's industry of origin and studies their inter-firm governance modes along the value chain. This research observes no trend of vertical integration extending over the value chain in contrast with major global players.

Firms recognised that security of supply and gaining access to the retail market are two critical success factors for the industry. They organised their inter-firm structure strategically to achieve their aims. However, macro-level institutional factors and limitations of capability (the evolutionary and learning perspective in Resource-based View) are among the prohibitive factors for the formation of a type of governance mode with a stronger degree of controlling power, i.e. vertical integration. Therefore, firms employ multiple governance modes to diffuse the risk of supply: a strategic decision rather than an efficiency calculation.

Item Type: Conference or Conference Paper (Paper)
Uncontrolled Keywords: Belt and Road Initiative, China, Transport Fuel, Global Value Chain, Bioethanol, Inter-firm Relationship, Governance Mode
Faculty / Department / Research Group: Faculty of Business
Faculty of Business > Department of Systems Management & Strategy
Faculty of Business > Networks and Urban Systems Centre (NUSC) > Supply Chain Management Research Group
Last Modified: 12 Jun 2019 13:19
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
Selected for GREAT 2019: None

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