Embeddedness of power relations in global value chains

This chapter provides an overview of the literature on power relations in global sourcing which goes beyond the prevalent focus on the dyadic business-to-business relation. The move through the various theories of power leads to my major claim which is that power dynamics in GVCs must be understood in the context of institutions in various fields and at different levels. While economic logic can explain certain patterns of power asymmetries, the power dynamics among actors at particular times and locations will be shaped by the specifics of the context. Therefore, universal claims concerning the character of power relations in global sourcing must be qualified by considerations for definite contexts. The overview applies Steven Luke's ‘three faces of power’ to the agential dimensions of power, the neo-institutionalist’s differentiation of regulative, normative, and cognitive institutions, and neo-Gramscian perspective on the emergence and reproduction of the so-called neoliberal historical bloc which provides the previously mentioned institutions with some sort of coherence.