Value Chain Governance

INTRODUCTION Governance is a dynamic feature of value chains that characterizes the relationships or linkages among stakeholders in the chain. Governance is important as it relates to the ability of a stakeholder to determine, control and/or coordinate the activities of other actors in the value added chain. At any point in the chain, a firm (or organization or institution) can set parameters under which others in the chain operate. The stakeholders responsible for establishing parameters can be one or more firms in the chain, actors in the larger enabling environment, or a combination of the two. Different actors may exert more or less influence in local or global markets, and the scope of an actor’s impact can be economy-wide or industry-specific.