ABSTRACT
Chapter 2 introduces the global value chain framework and describes a novel method for value chain research. A global value chain is the descriptive chain of all the value-adding activities required for the development, creation, sale, and distribution of a final product. The framework has been developed to explore the changing structure of global trade and investment, which is increasingly shaped through coordination of economic activity of the participating firms and geographic locations. This chapter focuses on governance in global value chains as the lens for understanding the inter-firm dynamics in the globalized automotive industry. The chapter further introduces the multiple vantage point case study approach, a novel approach that was used for this research project. Analyzing the value chain from multiple vantage points allows us to explore several layers of inter-firm dynamics between the different players participating in the value chain, offering new insights into the governance approach in the value chain.
