Information asymmetry as a barrier in upgrading the position of local producers in the global value chain-Evidence from the apple sector in Poland

Abstract

The typical approach in the business strand of literature on inter-organisational forms of cooperation is based on the Porter's value chain model or on the body of literature related to the supply chain. However, there is extended research on value chains based on a different theoretical tradition, rooted in world-systems theory and commodity chain concepts, which recently tend to merge under the umbrella of the Global Value Chain (GVC). We use this eclectic approach as a theoretical framework to investigate the issue of informational asymmetries considered as a barrier in upgrading the position of local producers in the GVC by enhancing quality. As an empirical illustration, we use the Polish apple sector. Poland is one of the largest apple producers in the world with a strong export orientation and linkages with the global value chain. The study provides an insight into the barriers of upgrading the position in GVC and ways to overcome them. Responsibility for the final quality offered for the end-user is strongly dispersed across many actors in the chain, while interrelations between them are plagued by the information asymmetry problem. Therefore, the upstream transmission of end-user quality expectations within the chain fails due to the lack of orchestrating incentives and causes the misbehaviour in conducting different activities in the chain. Thus, attempts to upgrade the position of Polish apple growers in the GVC should be focused on overcoming information asymmetries. Mechanisms such as branding, standardisation and certification seem to be promising ways forward.