Management School seminars

'Small worlds within global value chains: Implications for multinational enterprises’ environmental, social, and governance controversies' seminar

Join our upcoming 'Small worlds within global value chains: Implications for multinational enterprises’ environmental, social, and governance controversies' hybrid seminar with Dr Sangho Chae.

Speaker: Dr Sangho Chae (Warwick Business School)

Hosted by: University of Liverpool Management School's Operations and Supply Chain Management Group

Open to: Management School PhD students and academic staff, with no sign up needed

Date: Thursday 22 February 2024

Time: 10am-12pm 

Online: join Zoom meeting here

  • Meeting ID: 345 173 896 98
  • Passcode: ?Z.fs#0j

Place: ERB-LHT


Abstract

With increasing public attention on corporate sustainability, environmental, social, and governance (ESG) controversies such as toxic waste spills and modern slavery are becoming more prominent in global value chains (GVCs).

Having suppliers located in diverse countries has its benefits but it has limitations in terms of information access and regulating supplier behavior. This paper investigates whether multinational enterprises (MNEs) with heterogeneous GVCs are more prone to ESG controversies and proposes a structural characteristic of the GVCs as network governance that can mitigate MNEs’ exposure to such controversies.

Building on the literature on small-world networks, we suggest that the small-worldness of an MNE in its GVC and beyond can mitigate the impact of the GVC heterogeneity on ESG controversies.

Our analysis of Fortune 500 firms from 2010 to 2019 reveals that MNEs with heterogeneous GVCs indeed suffer more from more ESG controversies, while small-worldness attenuates the negative impact of GVC heterogeneity.

Our findings contribute to the international business and network studies literature by highlighting small-worldness as complementary network governance available for MNEs in managing the negative aspect of complex GVCs.

 

Speaker

Sangho Chae is an Associate Professor of Operations Management at Warwick Business School. His research focuses on unravelling the intricacies of supply network structures and understanding their impacts on innovation, supply risk and sustainability.

Sangho is also interested in exploring the dynamic factors that instigate changes within supply network structures. His scholarly contributions appear in the Journal of Operations Management, Journal of Supply Chain Management, International Journal of Operations & Production Management, Journal of Business Logistics and Journal of Business Ethics, among others.

He serves as an associate editor for leading journals in the field of Operations and Supply Chain Management, including the Journal of Operations Management, Journal of Supply Chain Management and International Journal of Operations & Production Management. He earned his PhD from Arizona State University, MSc from the University of Manchester and BBA from Yonsei University.

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