{"title":"Foreign direct investment and local supplier upgrading – the case of grocery retail in Turkey","authors":"Inka Gersch","doi":"10.1080/00167223.2019.1581629","DOIUrl":null,"url":null,"abstract":"ABSTRACT Foreign direct investments (FDIs) are noted as an important cross-border channel for knowledge. Thus, expanding companies can contribute to local supplying companies’ capability development, an important precondition for upgrading processes. Several transnational grocery retailers have expanded globally and introduced modern supply chain management practices to markets of emerging and developing countries. However, agri-food industries are under-researched regarding FDI-induced knowledge transfer and supplier upgrading. Based on qualitative interviews with both retailers and suppliers in the emerging market of Turkey, this article discusses the upgrading processes of fresh food suppliers driven by the FDI of grocery retailers. This article shows how the foreign retailers’ fresh fruit and vegetable supply structures have evolved towards the preferences of suppliers that vertically integrate value chain functions. Within this dynamic, transnational retailers proactively shape their suppliers and promote (functional) upgrading. The findings imply that (1) local regulatory environments should foster local sourcing and (2) the way for suppliers to work towards a solid value chain positioning is to fully integrate supply chain functions including agricultural primary production. This article argues that integrating low value-adding functions can be a type of functional upgrading that has not yet been acknowledged.","PeriodicalId":45790,"journal":{"name":"Geografisk Tidsskrift-Danish Journal of Geography","volume":"549 1","pages":"108 - 120"},"PeriodicalIF":0.8000,"publicationDate":"2019-03-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"4","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Geografisk Tidsskrift-Danish Journal of Geography","FirstCategoryId":"90","ListUrlMain":"https://doi.org/10.1080/00167223.2019.1581629","RegionNum":4,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"ENVIRONMENTAL STUDIES","Score":null,"Total":0}
引用次数: 4
Abstract
ABSTRACT Foreign direct investments (FDIs) are noted as an important cross-border channel for knowledge. Thus, expanding companies can contribute to local supplying companies’ capability development, an important precondition for upgrading processes. Several transnational grocery retailers have expanded globally and introduced modern supply chain management practices to markets of emerging and developing countries. However, agri-food industries are under-researched regarding FDI-induced knowledge transfer and supplier upgrading. Based on qualitative interviews with both retailers and suppliers in the emerging market of Turkey, this article discusses the upgrading processes of fresh food suppliers driven by the FDI of grocery retailers. This article shows how the foreign retailers’ fresh fruit and vegetable supply structures have evolved towards the preferences of suppliers that vertically integrate value chain functions. Within this dynamic, transnational retailers proactively shape their suppliers and promote (functional) upgrading. The findings imply that (1) local regulatory environments should foster local sourcing and (2) the way for suppliers to work towards a solid value chain positioning is to fully integrate supply chain functions including agricultural primary production. This article argues that integrating low value-adding functions can be a type of functional upgrading that has not yet been acknowledged.
期刊介绍:
DJG is an interdisciplinary, international journal that publishes peer reviewed research articles on all aspects of geography. Coverage includes such topics as human geography, physical geography, human-environment interactions, Earth Observation, and Geographical Information Science. DJG also welcomes articles which address geographical perspectives of e.g. environmental studies, development studies, planning, landscape ecology and sustainability science. In addition to full-length papers, DJG publishes research notes. The journal has two annual issues. Authors from all parts of the world working within geography or related fields are invited to publish their research in the journal.