Mexico: insertion of ICT services in global value chains, capabilities and public policy
by Lilia Domínguez-Villalobos; Flor Brown-Grossman; Sergio Carrera-Riva Palacio
International Journal of Value Chain Management (IJVCM), Vol. 8, No. 2, 2017

Abstract: This study aims to identify the process by which firms venture into the information, technology and communication (ICT) services global value chain and the obstacles they face. We analyse the prevailing mode of governance of the global value chain (GVC) taking into consideration the degree of complexity of transactions, the ability to codify information, customer-supplier interrelations, and suppliers' capabilities to meet buyers' demands. Our enquiry on the mode of governance could not be as precise as we might have expected. We found a group of firms in transition between captive and relational modes of governance. We identified three clusters with different strategies. We show that complexity of services is associated with the mode of governance. Low added value is associated with captive governance. Outsourcing is especially relevant in firms with captive or hierarchical governance, and a substantial part of exports are from firms with relational governance, characterised by their high capabilities, with more complex services.

Online publication date: Fri, 28-Jul-2017

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