Africa and Sustainable Global Value Chains

Description

This book contains a collection of studies on the interactions between businesses in Africa and Global Value Chains (GVCs) in terms of social, environmental and economic sustainability. This is particularly pertinent given the asymmetrical power distribution between the global buyer and the African supplier, their governance relationships and the ongoing competitive pressures to reduce costs and increase flexibility to meet GVC demands. Rather than focusing on the sustainability of a single organization, GVCs address the sustainability of inter-firm value chains and global industries as a whole. With little differentiation between value chain creation and social / environmental degradation extending to people and raw material extraction (upstream) and disposal or recycling (downstream), sustainability issues need to be at the forefront of African business research interests. Nowadays, sustainability is considered a competitive advantage for a firm looking to join a GVC. Whether sustainability is approached from the viewpoint of an exporting firm motivated to join a GVC in its respective industry or whether a firm’s continuing contractual or collaborative relationship with a buyer depends on its compliance with sustainability standards, both approaches focus on the ability of firms in Africa to benefit from joining sustainable GVCs. Foreword References Editorial: Africa and Sustainable Global Value Chains Introduction Background Motivation Book Structure Part I: Why Engage in GVC Sustainability Within Africa? Part II: Why Should African Suppliers Care? Part III: What Can African Suppliers Do to Engage in GVC Sustainability? Part IV: What Can Buyer Firms Do to Encourage Sustainability in African GVCs? Further Introductory Reflections References Contents Part I: Why Engage in GVC Sustainability Within Africa? Chapter 1: Maatian Philosophy, Sustainability, and Global Value Chains 1.1 Introduction 1.2 Maatian Philosophy 1.2.1 Meaning of Maat 1.2.2 Dimensions of Maatian Philosophy 1.3 Maatian Philosophy and Sustainability 1.3.1 Concept of Sustainability 1.3.2 Maatian Philosophy of Sustainability 1.4 Maatian Philosophy and Global Value Chains 1.4.1 Ancient Global Value Chains 1.4.2 Modern Global Value Chains 1.4.3 Maatian Philosophy and Global Value Chains 1.5 Maatian Philosophy and Sustainable Global Value Chains 1.6 Societal Welfare 1.7 Discussion References Chapter 2: Sustainable Performance of Large African Firms in Global Value Chains 2.1 Introduction 2.2 Research Objectives and Methodology 2.3 Descriptive Analysis 2.4 Category Identification 2.4.1 Drivers 2.4.2 Barriers 2.4.3 Outcomes 2.5 Discussion and Research Implications 2.5.1 Drivers 2.5.2 Barriers 2.5.3 Outcomes 2.5.4 Overall Framework Discussion 2.6 Implications for Practice 2.7 Conclusion and Further Research References Chapter 3: Sustainability for Global Value Chains: A Bibliometric Review on African-Based Studies 3.1 Introduction 3.2 Methodology 3.2.1 Research Keywords 3.2.2 Software Used 3.3 Bibliometric Analysis 3.3.1 Chronological Evolution of Literature 3.3.2 Influential Authors 3.3.3 Affiliation Statistics 3.3.4 Leading Journals 3.3.5 Keywords and Title Words: Analysis 3.4 Network Analysis 3.4.1 Co-author Analysis 3.4.2 Keyword Mapping 3.4.3 Citation Analysis 3.4.4 Co-citation Analysis 3.4.5 Content Analysis 3.4.5.1 Research Methodology Applied 3.4.5.2 Classification of Publications by Country 3.4.5.3 Topical Areas of Research 3.5 Conclusion Appendix: Classification of African-based GVC sustainability publications References Chapter 4: Embodied Land Resources Trade in Major African Countries: A Global Trade and Supply Chains Perspective 4.1 Introduction 4.2 Literature Review 4.3 Method and Data Sources 4.3.1 Multi-regional Input-Output Analysis 4.3.2 Data Sources 4.4 Results 4.4.1 Virtual Land and Economic Status Across the Global Supply Chain 4.4.2 Cost-Benefit Analysis of International Resource Trade of African Countries 4.5 Discussion 4.5.1 The Situation Between the Gulf States and African Countries 4.5.2 The Situation Between EU and African Countries 4.6 Policy Implications 4.7 Conclusion References Part II: Why Should African Suppliers Care? Chapter 5: Developing Sustainability Conscientious African Producers: Insights from Nigeria 5.1 Introduction 5.2 Globalization and Global Value Chains (GVCs) 5.2.1 GVC Framework 5.3 Sustainability Upgrading and GVCs 5.3.1 Agricultural Value Chain 5.4 Method 5.4.1 Participants, Setting, and Data Collection and Analysis 5.5 Findings and Discussion 5.5.1 Backward Integration 5.5.2 Accountability 5.5.3 Stakeholder Engagement and Government Involvement 5.6 Conclusion References Chapter 6: Evaluating the Barriers to Adopting Sustainable Agriculture Practices in Smallholder Coffee Farming: Implications f... 6.1 Introduction 6.1.1 The Coffee Industry in Kenya 6.1.2 The Coffee Global Value Chain: An Overview 6.1.3 Sustainability in Agriculture 6.2 Barriers and Challenges to the Adoption of SAPs 6.3 Methods 6.3.1 The Survey Instrument and Sampling Process 6.4 Results and Discussion 6.4.1 Descriptive Analysis 6.4.2 Exploratory Factor Analysis 6.5 Conclusions and Implications for GVCs References Chapter 7: Multi-national Buyer Firms´ Sustainability Requirements in a Developing Economy: An Explorative Study of Zambian Co... 7.1 An Introduction to Global Value Chains 7.2 Research Context: Mining Industry in Zambia 7.3 Literature Review 7.3.1 Sustainability in GVCs 7.3.2 Sustainability Requirements 7.3.3 Stakeholder Theory and Sustainability Requirements 7.4 Methodology 7.4.1 Research Design 7.4.2 Data Collection 7.5 Results and Findings 7.5.1 How Zambian Contractors and Suppliers Interpret Sustainability Requirements 7.5.2 How Zambian Contractors and Suppliers Integrate Sustainability Requirements 7.5.3 How Zambian Contractors and Suppliers Implement Sustainability Requirements 7.5.3.1 Multi-national Buyer Firms´ Sustainability Requirements Incorporated by Zambian Contractors and Suppliers 7.5.4 Challenges in Implementing Multi-national Buyer Firms´ Sustainability Requirement 7.5.4.1 Late and Delayed Payments by Multi-national Buyer Firms 7.5.4.2 Buyer Firms Focus on Low Price During Tendering 7.5.4.3 Lack of Government Support 7.5.5 How Multi-national Buyer Firms´ Requirements Include and Exclude Zambian Contractors and Suppliers 7.5.5.1 Inclusion of Some Zambian Contractors and Suppliers 7.5.5.2 Exclusion of Some Zambian Contractors and Suppliers 7.5.5.3 Factors That Lead to Exclusion 7.6 Discussion and Conclusion Appendix 1: Interview Guide References Part III: What Can African Suppliers Do to Engage in GVC Sustainability? Chapter 8: Global Agricultural Value Chains: The Case of Yam Export from Nigeria 8.1 Introduction 8.2 Literature Review 8.2.1 The Global Value Chain 8.2.2 Sub-Saharan African Agricultural Exports and Quality Conventions 8.2.3 Quality Conventions 8.2.4 Overall Business Environment 8.3 Research Questions 8.3.1 Research Design and Method 8.3.2 Sample Selection 8.3.3 Data Gathering 8.3.4 Data Analysis 8.4 Results 8.4.1 Diversification of the Economy 8.4.2 Lack of Collaboration and Coordination 8.4.3 Lack of Good Road Network 8.4.4 Quality Assurance 8.4.5 Discussion on the Barriers 8.4.5.1 Yam Productivity: Farming Stage 8.4.5.2 Comparison with Ghana´s Yam Sectoral Strategy 8.4.5.3 Discussion on Comparison of Ghana and Nigeria Yam Development Strategy 8.5 Conclusion References Chapter 9: Sustainability in Ethiopian Textile and Apparel Supply Chains 9.1 Introduction 9.2 Textile and Apparel Supply Chains 9.3 The Textile and Apparel Industry in Ethiopia 9.3.1 Ethiopia as a Cotton Producer 9.3.2 Cotton Ginneries and Spinnings 9.3.3 Yarn and Fabric Manufacturing 9.3.4 Apparel Processes 9.3.5 Summarized Data on the Textile & Apparel Sector in Ethiopia 9.4 Sustainability of Ethiopian Textile and Apparel Supply Chains 9.4.1 Social Sustainability 9.4.2 Environmental Sustainability 9.4.3 Customer Requirements and Governmental Initiatives 9.5 SWOT Analysis and Recommendations 9.5.1 Strengths 9.5.2 Weaknesses 9.5.3 Opportunities 9.5.4 Threats 9.5.5 Resulting Recommendations 9.6 Concluding Remarks References Chapter 10: Sustainability of the Handicraft Sector in Ghana 10.1 Introduction 10.1.1 Global Market Trends 10.1.2 Research Problem 10.2 Literature Review 10.3 Methodology 10.4 Results 10.4.1 Impact of Firm´s Operational Characteristics on Financial Sustainability 10.4.2 Impact of Access to Finance on Financial Sustainability 10.4.3 Impact of Promotional Tools on Financial Sustainability 10.5 Discussion of Research Findings 10.6 Summary and Conclusion 10.6.1 Recommendations References Chapter 11: From Localization to Globalization: Developing an Institutional Framework for the Handicrafts Clusters in Egypt 11.1 Introduction 11.2 Literature 11.2.1 Clusters 11.2.2 Clusters and Sustainability 11.2.2.1 Role of Government in Clusters 11.2.3 Clusters in Global Value Chains 11.2.4 Global Value Chains, Sustainable Development, and Handicrafts Sector 11.2.5 Handicrafts Clusters Within the Egyptian Context 11.2.5.1 The Egyptian Government´s Efforts in Cluster Development 11.2.5.2 Handicrafts Sector Initiatives Within the Egyptian Government 11.3 Methodology 11.4 Data Analysis and Findings 11.4.1 Institutional Challenges 11.4.2 Stakeholder Mapping 11.4.2.1 Governmental Entities 11.4.2.2 Semi-governmental Organizations 11.4.2.3 Private Organizations 11.4.2.4 Donor Organizations and International Organizations 11.4.3 Coordination Mechanisms Between Relevant Stakeholders 11.5 Discussion 11.5.1 Challenges Setting Back the Sector´s Global Competitiveness 11.5.2 Centralized Decision Making 11.5.3 Limited Support at the Local Level 11.5.4 Market Accessibility 11.5.5 Ensuring Fair Trade 11.5.6 Constricted Attention to Scarcity of Labor 11.6 Establishing a Framework for Streamlined Coordination and Implementation 11.7 Conclusion References Part IV: What Can Buyer Firms Do to Encourage Sustainability in African GVCs? Chapter 12: The Impact of the EPA on West Africa: The Mediating Role of an Intra-African Trade Policy for Africa´s Sustainable... 12.1 Introduction 12.2 Prior Literature and Conceptual Overview 12.2.1 Economic Impacts of the EPA on West Africa 12.2.2 Principles of the EPA 12.2.2.1 Reciprocity 12.2.2.2 Regionalism 12.2.2.3 Special Treatment 12.2.3 Theoretical Framework 12.3 Research Approach 12.4 Findings and Discussion 12.4.1 Case of the West African Subregion 12.4.1.1 Trade Growth 12.4.1.2 Industrial Growth 12.4.2 Trade and Economic Growth Picture: West African vs. North African Subregions 12.4.3 Organizational Learning Perspective of ACP-EU FTA: The West African Sub-Region 12.4.4 The Mediating Role of an Intra-African Trade Policy 12.5 Conclusion and Policy Implications References Chapter 13: Governance Mechanisms Used by MNCs for Egypt´s Suppliers´ Sustainability Compliance 13.1 Introduction 13.1.1 Research Context: Food Industry in Egypt 13.2 Literature Review 13.2.1 Environmental Sustainability Compliance 13.2.2 Social Sustainability Compliance 13.2.3 Product Sustainability Compliance Versus Process Sustainability Compliance 13.2.4 Governance Mechanisms 13.2.5 Governance Mechanisms and Product Versus Process Sustainability Standards 13.2.6 Gaps in the Literature and Definition of Research Questions 13.3 Research Method 13.3.1 Case Selection 13.3.1.1 Data Collection and Analysis 13.3.2 Validity and Reliability 13.4 Findings and Results 13.4.1 How Do Different Governance Mechanisms Used by the MNC Extend the firm´s Sustainability Policy and Guidelines to Its Su... 13.4.2 How Do Multinationals Detect Their Suppliers´ Sustainability Compliance Using Product Versus Process Perspective? (RQ2) 13.4.2.1 Product 13.4.2.2 Process 13.5 Discussion and Conclusion 13.5.1 Limitations and Future Research References Chapter 14: Value Chain and Regulatory Governance: The Case of Arla Foods in Nigeria 14.1 Introduction 14.2 Global Value Chain Analysis and the Governance Triangle 14.3 The Milk Value Chain from a GVC Perspective 14.4 Methodology 14.5 Case Summary 14.6 Analysis 14.6.1 Arla´s Entry into Nigeria: Social Upgrading from Perspective of the Governance Triangle 14.6.2 The Milky Way to Development: Combining GVC and GT Approaches 14.7 Combining GVC Analysis and the GT Framework to Enhance Analytical Power References Index