Upgrading Processes of Emerging-Market Manufacturers in Global Value Chains

Upgrading in global value chains (GVCs) is essential for emerging-market manufacturers (EMMs), yet clear managerial guidelines for the process remain elusive. Managers of EMMs face significant challenges in balancing economic viability with environmental and social responsibilities due to their distinctive position in GVCs. Much existing research frames upgrading in GVCs as a governance outcome, often neglecting how EMMs progressively advance their position to gain greater control in GVCs over time across multiple dimensions. To address this research gap, we conducted a conceptual analysis using the literature on economic, social, and environmental dimensions of upgrading, focusing specifically on the emerging-market context. Our analysis reveals that upgrading in GVCs is an evolving process for EMMs, encompassing three interrelated phases: refine to rise, flexibility in functions, and connect through capabilities. These phases may overlap and involve multiple dimensions and actors. Additionally, we identified key challenges, solutions, and outcomes associated with each phase. Our conceptual framework offers a temporal and multidimensional perspective on the upgrading processes in GVCs, unifying upgrading typologies while emphasizing their economic, social, and environmental dimensions. This framework serves as a foundation for informed business practices and policy in emerging markets, fostering sustainable development within GVCs.