Conceptual approaches

Abstract

The theoretical framework of this study draws on the global value chain (GVC) perspective that is complemented by considerations of informality, subcontracting and middlemen to explore and to uncover the informal dynamics in inter-firm linkages at the lowest end of the leather value chain. Strategies to overcome development constraints are drawn from the debate on economic upgrading in GVCs and embedded in the institutional context to achieve sustained competitiveness. Given its limited practicability, the global production networks (GPN) approach is deemed inappropriate for the extent of this study, although its notion of power, being negotiated in social interaction regardless of the firm’s position in the chain, has been integrated. In the end of this section four research questions are outlined to analyse the complexities of inter-firm relationships in Bangladesh’s leather industry, their informal dynamics and potential strategies to overcome structural constraints and to reposition themselves within GVC governance.