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

Kilombero Valley in Tanzania

Francis Ching’ota and Jonathan Jackson on Broadening Participation in Research Through Building Sustainable Relationships and Disseminating Knowledge

In their latest publication titled “Maono ya Bonde la Kilombero, Tanzania: Historia za Maendeleo Yake”, Francis Ching’ota, an Assistant Lecturer from the National Institute of ...
Read More »
Poster for a public lecture hosted by the CRC Future Rural Africa on 18 December 2023

CRC-TRR Public Lecture: Asebe Debelo

Mon | December 18, 2023 | 16:00 – 17:30  CET We are excited for the next volume of the Future Rural Africa Public Lectures Series. ...
Read More »
The picture shows two hippos.

Publication: Regional Resilience and Social-Ecological Systems – the Impact of COVID-19 on Community Conservation in Namibia

By Linus Kalvelage, Project C01 Future in Chains and Lars Lüder, University of Cologne. ABSTRACT The COVID-19 pandemic severely affected wildlife areas in Namibia, where ...
Read More »
Farming in Kenya

Publication: Cooperative membership and exposure to role models – Implications for income and asset aspirations

By Martin-Paul Jr. Tabe-Ojong, Thomas Heckelei, Kathy Baylis of CRC-TRR Future Rural Africa Project B01 “Invasive Futures” and Sebastian Rasch (University of Bonn). Abstract Although ...
Read More »
Cover image with the logo of the crc future rural africa & the logos of the uni cologne, uni bonn, and DFG

Upcoming Events Promoting Gender Equality and Diversity at the Universities of Bonn and Cologne

University of Bonn: Workshop Discussions A total of six workshop discussions will take place as part of the project. They are aimed at all students, ...
Read More »
Scroll to Top