Survival or upgrading? A study of small-to-medium sized firms’ growth strategies in an emerging economy: the case of the coconut sector in Vietnam

Nguyen, Thu 2023. Survival or upgrading? A study of small-to-medium sized firms’ growth strategies in an emerging economy: the case of the coconut sector in Vietnam. PhD Thesis, Cardiff University. Item availability restricted.

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Abstract

This study aims to explore the meaning and process of ‘upgrading’ from a bottom-up perspective, learning from the experience, perceptions, and desires of small-to-medium firms (SMFs) to capture more value from their market participation. Increase value capture through upgrading in Global Value Chains (GVCs) is often seen as one of the crucial ways in which firms aim to forge relationships with transnational companies to obtain knowledge and information that would enable them to gain access to global markets, allowing them to move from low value to relatively high value activities to gain better position in the chain (Pietrobelli and Rabellotti 2011). Nevertheless, the notion of “moving up” the value chain has been contested as plentiful of evidence indicates that first, upgrading in GVCs is often expensive with unclear rewards; and second, and successful upgrading does not necessarily mean a better position in the chain. This study moves beyond the global chain to explore alternative opportunities for firms to serve different end-markets with differentiated requirements, in the context of multiple and overlapping value chains of polycentric trade. Using ethnography-style interviews, observations, and other data collection instruments, the study draws from ten firm cases in the Vietnamese coconut sector – an agri-food chain – to gain deeper understanding of the upgrading concept in a real-world context. Findings from the study show that GVC linkages are not always desirable for SMFs due to the high costs of entry barriers and uncertainty of outcomes. Instead of attempting to insert themselves in a single formal value chain, firms in this study strategically supply to multiple end-markets simultaneously and juggle a mixture of formal and informal relationships to maximise their profits and reduce their costs. The study reinforces the view that upgrading is not only multidirectional but also a sophisticated process with careful cost-benefit calculations to identify for themselves most profitable position within their constraints. This study contributes to the growing body of critical literature on upgrading in GVCs in emerging economies as well as provides some insights into the process of implementing value chain integration agenda in the local context to offers some insights into the effectiveness of the agenda to the growth of firms and the sector.

Item Type:	Thesis (PhD)
Date Type:	Completion
Status:	Unpublished
Schools:	Business (Including Economics)
Subjects:	H Social Sciences > H Social Sciences (General)
Uncontrolled Keywords:	global value chain, uneven development, SME development, SME strategy, emerging economy, informal sector, agriculture sector
Date of First Compliant Deposit:	31 August 2023
Last Modified:	01 Sep 2023 13:07
URI:	https://orca.cardiff.ac.uk/id/eprint/162089

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