Exploring Firm Performance in Global Value Chains—A Sustainability‐Oriented Study

ABSTRACT The study of global value chains (GVCs) has gained significant attention over the past decade, with the global pandemic further accelerating discussions on their resilience and sustainability. This paper contributes to understanding GVCs by examining their bidirectional relationship with sustainability and their interlinkages with firm performance. While existing literature has extensively explored financial metrics, non‐financial performance indicators remain underexamined and often undervalued. To address this gap, this study focuses exclusively on non‐financial firm performance, recognizing its critical role in long‐term value creation. Employing a mixed‐method approach, we first conduct expert interviews to identify key themes through thematic analysis, which then inform the development of a structured questionnaire. Data collected from mid‐ and senior‐level managers is analyzed using PLS‐SEM, ensuring a robust empirical validation of qualitative insights. The findings highlight the significance of Goodwill and technology in enhancing firm performance within GVCs, reinforcing their role in driving sustainable business practices. By integrating environmental, social, and governance (ESG) dimensions, this study provides a holistic perspective on the evolving dynamics of global value chains and their impact on sustainability.