Influence of managerial actions in global value chain governance

Abstract

The study examines how managerial actions of Global Value Chains (GVCs) lead-firms influence governance structures within GVCs, focusing on the effects of cognitive biases, information asymmetries and institutional pressures. Grounded in global value chain and institutional theories, the research explores micro-level managerial decisions shaping ownership, control, coordination and value distribution in GVCs. Employing a qualitative methodology, ten semi-structured interviews capture nuanced perspectives of South African GVC lead-firms across diverse institutional contexts. The findings reveal the interplay of managerial adaptation, institutional voids and governance mechanisms in enhancing GVC resilience, competitive advantage and coordination efficiency. The study contributes theoretically by linking institutional pressures to governance outcomes and practically by offering insights for lead-firm managers on aligning governance strategies with institutional environments. This work addresses critical gaps in understanding the micro-foundations of GVC governance and proposes actionable recommendations for sustainable chain management.