GVC vulnerability to disruption
- Publisher:
- Routledge
- Publication Type:
- Chapter
- Citation:
- The Routledge Companion to Global Value Chains, 2021
- Issue Date:
- 2021-09-16
Open Access
Copyright Clearance Process
- Recently Added
- In Progress
- Open Access
This item is open access.
Despite the benefits of modularisation and highly interconnected global value chains (GVCs),
recent natural disasters have provided evidence that global supply chains can be quite vulnerable
to interruptions. Risks in supply chains leading to interruption are not limited to natural
disasters and can include fires and financial ruin (see Natarajarathinam et al., 2009). Simchi-Levi
et al. (2014) have recently suggested it is the low-end commodity producers that expose highervalue
system integrators to the greatest risks. For example, the Thai floods in 2011 disrupted
electronics and auto supply chains across the globe – particularly affecting hard drive supplies
(Tibken, 2011). Likewise, the Japanese earthquake in 2011 disrupted auto production from Japan
to North America to Sweden (Glinton, 2011), as discussed in a National Public Radio interview
between Glinton (interviewer) and Handler (auto industry expert).
Please use this identifier to cite or link to this item: