Services in Global Value Chains: Manufacturing-Related Services

The study compiles 22 firm-specific case studies which show the importance of manufacturing-related services in global value chains. The interviewed firms, based in 12 APEC economies, come from different sectors ranging from multinational automotive and construction equipment manufacturers to electrical appliances and watch manufacturing. It analyses what specific services are important in which stage of the value chain, and whether they are typically provided in-house or outsourced. The study contributes to the current discussions on ‘servicification’ of manufacturing by which services have increased its importance and value in manufacturing products, so much so that some manufacturing companies are, arguably, virtually service companies. The studies also present the importance of economic policies in shaping firms’ configurations, operations, and location of global value chains.