GLOBAL SUPPLY CHAIN DEVELOPMENT

Being able to participate in GSCs may be a sign of a country's growing productive capacity. Moreover, having a strong relational linkage with the lead firm in a supply chain could enhance a transfer of knowledge, technology and even financial capital into the suppliers' country. In this way, participating in a GSC can play a catalytic role in a developing country's economic growth through productive capacity upgrading. However, such a level of GSC participation appears to be possible only for countries which already have some prerequisite productive capacity, which are mainly middle- to higher-middle income countries. Technology transfer within a GSC is not automatic. Lead firms, especially those of products or production technique/processes with high intellectual property content, may restrictively control technical and technological spill over to subcontracted suppliers. In addition, the investment strategies of TNCs should be borne in mind. For example, there is evidence to suggest..

Also known as: Global Supply Chain, GSC, GSCD, GSCs