ABSTRACT
The chapter explores how suppliers’ potential to conduct environmental upgrading (EnvU) in global value chains (GVCs) is shaped by the suppliers’ bargaining power and value chain governance. Building on interview data, the authors provide an exploratory case study related to processes, products, and end-of-life EnvU among eight Norwegian suppliers within the manufacturing industry. The authors find that the lack of bargaining power, both in relation to lead firm customers and sub-suppliers, is a barrier for product and end-of-life EnvU, as the suppliers are bound by pre-existing specifications and requirements as contract manufacturers in captive value chains. EnvU in the form of changes in production processes is seen as more viable, as suppliers are in control of most of the activities that are done in-house, with no need to bargain with customers or suppliers in the value chain. The chapter contributes to the literature on EnvU by introducing the importance of power between value chain actors in EnvU, a thus far understudied topic in the EnvU literature. Additionally, the chapter provides novel insights on suppliers’ efforts to conduct EnvU, adding to the emerging stream of literature on EnvU in GVCs.
