The Role of the Global Value Chain in a New Competitive Environment. A Case Study in a Mature Industry

Abstract:

As a result of the development of new industrialized countries such as Brazil, China and other Southern Asian economies, as well as a globalized economy, traditional competitive paradigms based in advantages related to costs and quality efficiencies or even innovation are no longer sufficient. These previous classical paradigms related competitiveness either to costs or technology innovation and the resources of industry incumbents. However, the combination of adequate knowledge and relationship management with marketing efforts brings forth a reconsideration of the present competitive models which go beyond those analyses from the point of view of global value chains.  The objective of this investigation will analyze the governance structure of the territorial value chain in the Spanish ceramic tile industry, through the understanding of previous and current roles of several industries involved in the value creation system. By way of, both case study and quantitative methodology approach, the authors will  explore the paradigm change where traditional chain actors are losing their grip on their contribution to the territorial value creation system as new actors appear with a more stable status.