Sustainable Governance of Global Value Chains (GVCs) in an Era of Volatility, Uncertainty, Complexity, and Ambiguity

Abstract

This comprehensive chapter explores the resilience imperative for firms engaged in global value chains (GVCs) within the context of sustainable governance. Effective resilience, characterized as more than a mere recovery mechanism, emerges as a proactive and adaptive governance strategy crucial for navigating global disruptions and ensuring sustainable value creation. This chapter emphasizes the pivotal role of governance in managing disruption risks and balancing efficiency with resilience imperatives. By integrating governance theories and practices, this research provides nuanced insights into the multifaceted dimensions of resilience in GVCs. Decision-makers are urged to recognize a shared responsibility in sustaining these systems, promoting a holistic governance approach that enhances the overall adaptability and sustainability of firms operating in GVCs. The findings show that adaptive governance in GVCs is crucial for fostering supplier resilience and ensuring sustained performance during exogenous shocks.