Managing global value chains in the furniture industry. An international comparative study

Over the last few decades, the rise of offshore outsourcing has significantly altered the industrial organization of developed economies. Particularly in mature, low-tech industries, the global relocation of operations has represented a necessary strategy for numerous organizations. Departing from the acknowledgment of changing patterns of industrial organization, I wonder whether production can still foster the economic development of Western manufacturers. By focusing on the furniture industry in North Carolina (USA) and in Northeast Italy, this study investigates the way established value chains have been reorganized in the global scenario and how the current organization of operations is affecting manufacturers’ innovation capabilities and competitiveness. The development of an international multiple case study suggests that control over manufacturing activities enhances product innovation and supports firms’ competitiveness.