Rethinking business performance in global value chains

This paper develops a theoretical foundation for rethinking business performance in global value chains amid the Covid-19 fallout. Specifically, we synthesize business performance into three potentially reinforcing but also conflicting performance systems: 1) operational efficiency, 2) market effectiveness and 3) financial resilience to examine their effect on a) profitability, b) growth and c) solvency. While some specific measures of business performance will suffice in times of stability and growth, they could make firms operating in global value chains vulnerable in times of adversity. Our comprehensive theoretical framework contributes to our understanding of the dynamic interplay of conflicting performance systems. We discuss implications for assessing business per-formance and provide directions for further research.

Automated summary

This paper develops a theoretical foundation for rethinking business performance in global value chains amidst the Covid-19 pandemic. It proposes a comprehensive framework that includes operational efficiency, market effectiveness, and financial resilience as three key performance systems. The study highlights the interplay and potential conflicts among these systems and provides implications for assessing business performance and future research direction.