Lead Firms in the Cocoa–Chocolate Global Production Network: An Assessment of the Deductive Capabilities of GPN 2.0
Abstract
Recent models of Global Production Network Theory (known as GPN 2.0) have attempted to theoretically explain the underlying determinants, or causal drivers, of particular industry network configurations, which in turn shape the territorial outcomes for regional development. To date, the ability of this ambitious conceptual model to thereby explain economic geography has remained largely untested beyond the select industry networks examined by its proponents, most notably the electronics, retail, and automotive sectors of East Asia. In this article, we stress test the causative model for the case of lead firms in the global cocoa–chocolate sector, and assess its ability to subsequently explain industry configurations and territorial outcomes in a particular country: Indonesia. Our application suggests that GPN 2.0 has considerable utility for directing empirical research, but challenges beset its fuller theoretical promise. We identify a problematic relationship between the deductive causality implied by GPN 2.0 and the inherent relationality of GPN 1.0 that remains, in our view, unresolved. As a result, we remain skeptical of the broader theoretical claims that GPN 2.0 possesses explanatory powers capable of deducing industry network configurations from a discrete set of supposedly independent variables.
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Contextual heterogeneity is important in shaping the influence of different network structures on lead firm behavior and relationships with suppliers and distributors.
“Another study of chocolate GVCs in Indonesia by Neilson, Pritchard, Fold and Dwiartama (2018) also points to the importance of contextual heterogeneity in shaping the influence of different network structures on lead firm behavior and relationships with suppliers and distributors.”
From Global value chains: A review of the multi-disciplinary literature (2020) · cites this paper as Neilson, Pritchard, Fold and Dwiartama, 2018
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- Authors
- Neilson, J., Pritchard, B., Fold, N., & Dwiartama, A.
- Affiliations
- The University of Sydney (AU)
- University of Copenhagen (DK)
- Bandung Institute of Technology (ID)
- Corresponding author
- Neilson, Jeff
- Venue
- Economic Geography
- Publisher
- Informa UK Limited
- Published
- 2018-04-24
- Volume
- 94
- Issue
- 4
- Pages
- 400-424
- ISSN
- 0013-0095 (ISSN-L)
- 1944-8287
- OpenAlex
- W2801045903
- Cited by
- 64
- References
- 48
- Citations by year
- 2026: 9 · 2025: 11 · 2024: 5 · 2023: 15 · 2022: 1 · 2021: 7 · 2020: 10 · 2019: 5 · 2018: 1
- FWCI
- 9.61
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Economic Geography (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Research at the University of Copenhagen (University of Copenhagen) (submittedVersion)
- Funders
- Australian Centre for International Agricultural Research (AGB-2010-099)
- Sydney Southeast Asia Centre (G175885)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Global trade, sustainability, and social impact
- Social Sciences › Development › Regional Development and Innovation
- Social Sciences › Urban Studies › Global Urban Networks and Dynamics
- Keywords
- lead firms, global production networks, territorial development, economic geography theory, Indonesia
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