Power symmetry in global value chains: Evidence from the Russian retail market
Value chain management actively studies sources and types of interfirm power because increasing power symmetry between partners fosters innovativeness and adaptability to a market context. This study focuses on global value chains (GVCs) as a special type of value chains that experiences substantial influence of collective power. In the analysis I attempt to demonstrate higher power symmetry between partners inside a GVC than in other value chains. This hypothesis is based on a combination of resource dependence, mutual dependence, and social exchange/social embeddedness approaches with the analysis of structure in a GVC. The paper uses data from four waves of a survey conducted in Russia between 2010–2019 that include more than 2.700 managers of both buyers and suppliers. (OLS) and logit regression models were built for the analysis. The results demonstrate that partners inside GVCs share trade margins more symmetrically, have more equal negotiation power, and are more intensively involved in social exchanges through informal support.