‘ Quality Conventions and the Governance of Global Value Chains ’

Convention theory helps understanding the dynamics of governance in global value chains through its analysis of ‘quality’. This is particularly relevant as food and user safety awareness, and social and environmental concerns, are key elements in present consumption patterns in industrialized countries – and as quality content becomes more complex. This article shows that global value chains are becoming increasingly ‘buyer-driven’ even though they are characterized by different forms of coordination in different segments. In particular, ‘lead firms’ have been able to shape the functional division of labour along value chains even though they practice relatively ‘loose’ forms of coordination with their immediate suppliers. This has happened because lead firms have been able to embed quality information into widely accepted standards, certifications, and codification procedures.