California Management Review
California Management Review is a premier academic management journal published at UC Berkeley
by Paul Ryan, Giulio Buciuni, Majella Giblin, and Ulf Andersson
Image Credit | Louis Hansel
The pandemic crisis caused a severe shock to global value chains and led to supply shortages for complex medical goods such as respiratory ventilators. What followed were calls to reshore production for security, and the loss of efficiencies from foreign global value chain (GVC) operations for the multinational enterprise. This article merges internalization and GVC theory to demonstrate a dynamic hierarchy managerial response to these crisis conditions. An optimally configured GVC under hierarchy governance can resiliently eliminate global supply line ruptures yet maintain the benefits of global efficiency.