Articles

Peculiarities of developing global value chains in the Context of chemical industry

• 
• 

User Rating:  / 0

PoorBest 

Details

Category: Content №5 2022

Last Updated on 30 October 2022

Published on 30 November -0001

Hits: 2673

Authors:

V.Ya.Shvets, orcid.org/0000-0001-7261-5993, Dnipro University of Technology, Dnipro, Ukraine, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

O.V.Tryfonova, orcid.org/0000-0003-2283-6258, Dnipro University of Technology, Dnipro, Ukraine, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

H.V.Baranets, orcid.org/0000-0003-3172-3001, Dnipro University of Technology, Dnipro, Ukraine, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

повний текст / full article

Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu. 2022, (5): 197 - 202

https://doi.org/10.33271/nvngu/2022-5/197

Abstract:

Purpose. To identify organizational, operation, and development peculiarities of the global value chains in the chemical industry.

Methodology. Tools of analysis and synthesis, generalization and scientific abstraction were applied to classify the world economy branches in terms of indices of value chain length and its geographical distribution while determining features of global value chain organization in the context of paint and coatings sector of the chemical industry; and static, economic, and comparative analyses were applied to define and interpret amounts of the value multiplier.

Findings. Global value chains in the context of the chemical industry are studied. It has been identified that they are of more pronounced regional nature; moreover, their development is based upon a principle of approximation to a consumer. Distribution of the value within such chains is of dispersed nature; in addition, they differ in high length. The global value chains are analysed at the level of certain companies in paint and coatings sector of the chemical industry. Such chains are referred to a producer-driven type. It has been defined that they are characterized by heavy expenses associated with R&D as well as composition of paints and other coatings. The majority of production activities, implemented throughout the world, are performed by industrial manufacturers. It has been defined that the chains are developed generally as horizontally integrated structures. The major players in the paint and coatings market actively put into practice merger and acquisition strategies to extend supply chains and increase regional share. Computation of value multiplier helped prove that vertically integrated companies can generate greater value to compare with the companies which function and grow following the principles of horizontal integration.

Originality. The paper substantiates scientific methodological approach to the analysis of the global value chains in the context of chemical industry which made it possible to single out characteristic features of their organization and functioning.

Practical value. Determination of peculiarities of organizing the global value chains helps select possible management methods and tools which will make it possible to improve their functioning efficiency as well as their future progress potentials.

Keywords: global value chains, chemical industry, mergers and acquisitions, vertical integration, horizontal integration

References.

1. Abdikeev, N.M., Tyutyukina, E.B., & Bogachev, Yu.S. (2019). Formation of Value-Added Reproduction Chains in the Industry Based on Business Audit. Ekonomika. Nalogi. Pravo, 12(3), 68-76. https://doi.org/10.26794/1999-849X2019-12-3-68-76.

2. Klochko, O.A., & Manujlov, I.A. (2018). Countries participation in global value chains: an example of consumer electronics industry. HSE Economic Journal, 22(1), 135-152. https://doi.org/10.17323/1813-8691-2018-22-1-135152.

3. Baranovskaya, Ya.G. (2021). Involvement of the automotive industry of the countries Asia and Eastern Europe in global value chains. Tradepolicy, (3), 53-74. https://doi.org/10.17323/2499-9415-2020-3-23-53-74.

4. Volgina, N.A., & Vozmilova, S.S. (2015). Global value chains in the automotive industry: modern trends. Vestnik Rossijskogo universiteta druzhby narodov. Seriya: Ekonomika, (2), 36-48.

5. Pisareva, S.S. (2018). Automotive Value Chains in Central and Eastern Europe: Experience for Russia: monograph. Moscow: KNORUS.

6. UN Environment Programme (2020). Sustainability and Circularity in the Textile Value Chain Global Stocktaking. Nairobi. Kenya. Retrieved from https://www.oneplanetnetwork.org/sites/default/files/unep_sustainability_and_circularity_textile_value_chain_1.pdf.

7. Dolzhenko, I.B. (2019). Global value chains in fashion sector. International Journal of Humanities and Natural Sciences, (12-3), 54-58. https://doi.org/10.24411/2500-1000-2019-11931.

8. Kondratev, V. (2014). Global value chains in the modern economy. Retrieved from https://www.perspektivy.info/oykumena/ekdom/globalnyje_cepochki_dobavlennoj_stoimosti_v_sovremennoj_ekonomike_2014-03-17.htm.

9. Kondratev, V.B. (2019). Global value chains in industries: common and specific features. World Economy and International Relations, 63(1), 49-58. https://doi.org/10.20542/0131-2227-2019-63-1-49-58.

10. The Global Chemical Industry: Catalyzing Growth and Addressing Our Worlds Sustainability Challenges (2019). Report for ICCA. Oxford Economics. Retrieved from https://www.oxfordeconomics.com/publication/download/311002/.

11. Chemical Sector Profile. (May 2019). Cybersecurity and Infrastructure Security Agency. Retrieved from https://www.cisa.gov/sites/default/files/publications/Chemical-Sector-Profile_Final%20508.pdf.

12. Casella, B., Bolwijn, R., Moran, D., & Kanemoto, K. (2019). Improving the analysis of global value chains: the UNCTAD-Eora Database. TRANSNATIONAL CORPORATIONS. 26(3), 115-142. Retrieved from https://unctad.org/system/files/official-document/diaeia2019d3a5_en.pdf.

13. United Nations (2020). World Investment Report 2020: International Production Beyond the Pandemic. Retrieved from https://unctad.org/webflyer/world-investment-report-2020.

14. McKinsey Global Institute (2020). Risk, resilience, and rebalancing in global value chains. Retrieved from https://www.mckinsey.com/business-functions/operations/our-insights/risk-resilience-and-rebalancing-in-global-value-chains.

15. Global Top 10: Top Paint and Coatings Companies (2020). Annual Ranking of Top Paint and Coatings Companies. Retrieved from https://www.pcimag.com/articles/108999-global-top-10-top-paint-and-coatings-companies/.

16. Statistics and facts about the global paint and coatings industry (2021). Retrieved from https://www.statista.com/topics/4755/paint-and-coatings-industry/.

17. M&A activity intensifies in Europe (2021). Retrieved from https://www.coatingsworld.com/issues/2021-02-01/view_europe-reports/ma-activity-intensifies-in-europe/?widget=listSection/.

18. Kozhevnikov, S.A. (2016). Developing technology value chains in the form of vertical integration. Voprosy territorialnogo razvitiya. 3(33), 1-16. Retrieved from http://vtr.volnc.ru/article/1885/full?_lang=ru.

19. Hempel announces further global price increase (2021). Retrieved from https://www.hempel.com/news/2021/hempel-announces-further-global-price-increase/.

• < Prev