Publication: Supplying Lead Firms, Intangible Assets and Power in Global Value Chains – Explaining Governance in the Fertilizer Chain

By Peter Dannenberg and Gideon Tups (CRC-TRR Project C01 Future in Chains / University of Cologne).

Abstract

Global suppliers of agricultural inputs such as seeds, fertilizers and agrochemicals exert increasing degrees of power in global value chains (GVCs). Although the GVC literature has explained how global buyers govern GVCs from the buying-end, the question of how global suppliers achieve governance from the supplying-end remains underexplored. We address this gap by combining a multidimensional typology of power with literature on intangible assets. We argue that intangible assets are crucial resources for global suppliers to morph otherwise ungovernable supply chains for undifferentiated input commodities into more sophisticated and governable GVCs. We illustrate our argument with the case of the global fertilizer supplier, YARA International. YARA’s intangible asset investments were instrumental in governing the value chain integration of Tanzanian smallholder farmers. They allowed YARA to exert more than bargaining power (demonstrative, institutional and constitutive power) and to effectively position itself as supplying lead firm in Tanzania’s agro-industrial GVC.

Dannenberg, P., Tups, G. 2023. Supplying lead firms, intangible assets and power in global value chains: Explaining governance in the fertilizer chain. Global Networks. A Journal of Transnational Affairs. Full Text

For more information on project C01 Future in Chains click here.

More CRC News

group foto taken at a workshop

Dissemination Workshop in Dodoma: Discussing Futures of Rural Transformation

On 25 April 2025, the Collaborative Research Centre (CRC) Future Rural Africa co-hosted a Dissemination Workshop in Dodoma, Tanzania together with the German Institute of ...
Read More »
Thumbnail of a video featuring anna-katharina hornidge

Video: Anna-Katharina Hornidge on Research, Training and Value Chain Development in Tanzania

Anna-Katharina Hornidge is the director of the German Institute of Development and Sustainability (IDOS) and researcher in Future Rural Africa Project B05 Science Futures. She ...
Read More »
geothermal energy plant in Kenya

New Publication: The Unintended Socio-Economic Transformations of Kenya’s Green Energy Boom

In this new publication, Clemens Greiner, Britta Klagge, Samuel Owuor (Project C02 Energy Futures) alognside Cynthia Wamukota and Isaiah Nyandega examine the unintended socio-economic impacts of ...
Read More »
Group photo with the minister, Deputy Minsiter, Parmanent Secretary, the Board members

Professor Theobald Frank Theodory Appointed to NEMC Board of Directors

We are proud to share that Professor Dr. Theobald Frank Theodory of Mzumbe University, Tanzania, and cooperation partner of Project C03 Green Futures, has been ...
Read More »
image of an african savannah

New Publication: How Land-Use Change Shapes Carbon Storage in African Savannas

In this article, Liana Kindermann, Alexandra Sandhage-Hofmann, Wulf Amelung, Jan Börner, J., Ezequiel Fabiano, Maximilian Meyer and Anja Linstädter (Project A01 Future Carbon Storage) and ...
Read More »
Scroll to Top