On Socially Responsible GVC Governance Structures: Outsourcing or Internalization?

Simon Iskander, Anthony Goerzen, Christian Geisler Asmussen

Research output: Chapter in Book/Report/Conference proceedingConference abstract in proceedingsResearchpeer-review


To minimize costs, the traditional approach used by multinational corporations (MNCs) to optimize price and quality in the production and delivery of goods and services has been achieved through hierarchical and arm’s length contractual means. This approach combines with the factors that propel economic globalization, yielding complex global value chains (GVCs). However, an emerging challenge facing lead MNCs is that they are unable to control the social and environmental implications of the activities throughout their GVCs. The traditional approach to deal with these issues has been that of “cascading contracts” where responsibility is handed along the GVC sequence of firms. Yet, consumers, civil society, and regulators are increasingly holding lead MNCs morally and financially responsible for social and environmental problems even when these issues do not arise within the MNC’s hierarchical or contractual boundaries. To provide new insights into the organization of MNCs, we develop a formal analytical model that combines cascading responsibilities with the value-adding and value diminishing factors that have begun to arch from the “first mile” of the GVC directly to the lead MNC.
Original languageEnglish
Title of host publicationProceedings of the Eighty-third Annual Meeting of the Academy of Management
EditorsSonia Taneja
Number of pages1
Place of PublicationBriarcliff Manor, NY
PublisherAcademy of Management
Publication date2023
Publication statusPublished - 2023
EventThe Academy of Management Annual Meeting 2023: Putting the Worker Front and Center - Boston, United States
Duration: 4 Aug 20238 Aug 2023
Conference number: 83


ConferenceThe Academy of Management Annual Meeting 2023
Country/TerritoryUnited States
Internet address
SeriesAcademy of Management Annual Meeting Proceedings

Cite this