COVID-19 and the global value chain: Immediate dynamics and long-term restructuring in the garment industry

• Published in: Journal of business research Vol. 139; pp. 1588 - 1603
• Main Authors: Mostafiz, Md Imtiaz, Musteen, Martina, Saiyed, Abrarali, Ahsan, Mujtaba
• Format: Journal Article
• Language: English
• Published: Elsevier Inc 01.02.2022
• Subjects: COVID-19; Emerging economy; Global value chain; COVID-19; Emerging economy; Global value chain
• ISSN: 0148-2963; 1873-7978
• DOI: 10.1016/j.jbusres.2021.10.078

Advancing the literature on global value chains (GVCs), this study investigates the impact of the COVID-19 pandemic on immediate dynamics and long-term changes shaping the evolution of the garment GVC. We use a partially grounded, longitudinal approach to analyze data on seven cases of Bangladeshi garment manufacturers, supplemented by archival data on the garment industry. Based on our analysis, we theorize that the COVID-19 crisis has led to three types of dynamics (temporal, structural, and spatial) that contribute to GVC restructuring. Consistent with the paradox approach, we document two counter-tensions that influence the GVC in the long term: the push to disintegrate (i.e., permanently restructure) and the pull to integrate (i.e., preserve or strengthen the existing structural routines). We conceptualize the ultimate structure of the GVC as the alignment of a new balance of power and new capabilities of the GVC actors. Implications for theory, practice, and policy are discussed.