eThesis - School of Business electronic theses

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This study examines global value chains, and more precisely the creation and distribution of value in machinery industry in the level of an individual product. While the global economy and different webs and networks of companies are becoming more and more complex, this study is aiming at providing a workable example and model of a global value chain and defining both organizational as well as geographical distribution of value within that chain. Furthermore, the study is trying to position the case company Metalli Inc. in the larger economic environment also in terms of global value chain governance, quality standards, capital repatriation, offshoring and upgrading and reflect the strategic position of the company against the relevant academic literature available on the topic. The study is part of a larger research initiative of ETLA (the Research Institute of Finnish Economy).

Thorough qualitative research methods are used for the purposes of this research, but also some quantitative data is being utilized. Extensive in-depth personal interviews are used according to the framework provided by ETLA for obtaining qualitative data, and calculations are based on quantitative data gained from various public databases and company records and reports. The methodology aims at gathering data for accurate comparisons between different product “sizes”, locations of production as well as regions of sales.

The findings of this individual research project provide a great example of value distribution within a global value chain in the machinery industry, and provide a presentation of different roles and relationships within the chain. Findings also introduce different scenarios in terms of the product, production and sales and show the geographical as well as organizational distribution of value for each scenario. Furthermore, the results of this research are used later in a larger research ensemble organized by ETLA, in which these transparent and comparable results will be compared and analyzed together with other similar cases from other industries and fields of business.