An Explorative Study on Functional Upgrading and Export Development of Vietnam Wood Furniture Producers

The academic debate about whether developing country producers should involve in design and marketing functions through which developed country firms hold strong positions triggers research idea for this research. The research applies global value chain perspective to analyze the relationship between functional upgrading and firm's export development in the context of Vietnam wood furniture industry. It employs qualitative analysis methods including indepth interview, direct observation and case study analysis. The results from this research indicate the positive impact of functional upgrading on firm's export development and the combination of different functions in different value chains enables developing country firms to develop well in the long term. This paper suggests that firms should combine both transactional and relationship marketing approach.