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Home > Research > Papers > after the year 2000 |
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관리자 |
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2024-06-09 |
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[GER 2024] Several Modes of Digitalization of Value Chains and their Effects on
Firm Behavior and Performance: Case Studies of Apparel and Video Game Industrie
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Tri VuPhu, Keun Lee, and Donghyun Park, (2024) Several Modes of Digitalization of Value Chains and their Effects on Firm Behavior and Performance: Case Studies of Apparel and Video Game Industries. Global Economic Review. vol 53, no 2" 116-149. open access. https://doi.org/10.1080/1226508X.2024.2351797
Abstract
This paper analyzes the process of digitalization of global value chain (GVC) in the apparel and video game industries and its effects on firm behavior and performance. It identifies and elaborates on several modes of value chain digitalization, namely: thin digitalization, platform digitalization, and full-range digitalization. In the mode of platform digitalization, platforms reduce customer acquisition costs and facilitate industrial upgrading of manufacturers. However, firms are required to pay a hefty fee to platform providers, which tend to be higher in the cases of more monopolized platforms; from 2 to 27% of sales in apparel industry and from 15% to 30% in video game sector. Alternatively, a full-range mode of digitalization is also possible, observed, and theoretically explained. This mode involves the rise of platform owners who are also brand managers, designers, and product owners. Empirical analyses of the video game industry show that the digitalization tends to contribute to the expansion of the absolute volume of sales, profits, while saving of costs, but its impacts on profitability (profit margins) are uncertain with the benefits and costs offsetting each other. GVC digitalization benefits startups by lowering entry costs and facilitating upgrading, whereas it may be detrimental to incumbent companies since it can enable platform providers to transform into formidable competitors.
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published-digital GVC-GER-2024.pdf (1,538,208 byte) |
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