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Title Sustainability governance in the automotive-auto parts global value chain: opportunities for small and medium sized enterprises in developing countries
Type Refereeing
Keywords Argentina – automotive-auto parts industry – case study – corporate sustainability –downgrading –Original Equipment Manufacturer (OEM) – qualitative methodology –tier – upgrading
Abstract This paper studies the influence of governance on sustainability criteria in the automotive-auto parts Global Value Chain [GVC], and the real possibility for Small and Medium Sized Enterprises [SMEs] to achieve upgrading through these criteria. A qualitative research methodology was chosen, taking a developing country GVC as object of study. The leading companies‟ influence on sustainability governance in the GVC is very strong, but it only affects the links that are directly related to them. So, sustainability upgrading opportunities are very scarce for SMEs suppliers which do not supply leading companies and they are at a clear disadvantage in sustainability terms. To counteract this situation, other stakeholders have gained ground, namely: different associations and organisations that are devoted to social struggle and the State as regards environmental regulations, creating a more multipolar and collective sustainability governance. However, these actors have very little power compared to that of leading companies.
Researchers Masoud Rahiminezhad Galankashi (Referee)