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

cover for a web post

New Publication: The Politics of Suspended Infrastructure in Kenya

Uroš Kovač (Project B04 “Framing Futures”) examines stalled construction projects in Kenya—focusing on the suspended renovation of Kamariny Stadium—to show how “suspension” functions as a ...
Read More »
logo of the cologne international forum

Cologne International Forum Grants: Innovative Tandem Collaborations

The University of Cologne will be awarding five project grants (€ 15,000 each) annually for project-related innovative tandem collaborations between University of Cologne-based academics and ...
Read More »
Job Futures

Beyond Farming: New Evidence Reveals Poor Pay and Precarious Work in Rural Africa

In this article, Jackson Elias Nzira, Martin C. Parlasca and Matin Qaim (Project C08 “Job Futures”) examine labour conditions across different rural economic sectors in ...
Read More »
cover for a web post

Available Positions for Third Funding Phase

We are pleased that our research project has received funding for a third project phase (2026-2029). As part of this next phase, we will be ...
Read More »
cover for a web post

New Study Reveals How Urban Greening Fuels Displacement and Inequality in Nairobi’s Informal Settlements

In this study, Valentine Opanga (associate researcher Project C03 “Green Futures”) and Prince Guma (Cambridge University) analyse how struggles over green and ungreened spaces in ...
Read More »
Scroll to Top