LEARNING AND UPGRADING IN LOCAL PRODUCTION SYSTEMS: EVIDENCES FROM THE FOOTWEAR INDUSTRY1

Abstract This paper approaches the forms of governance in local production systems and their relations to the global value chain. The insertion of local producers in the value chain provides strong opportunities for firms to upgrade in areas related to the manufacturing process, such as production, costs, quality, and delivery time. However, the development of production capabilities does not promote upgrading in other areas of the firm, such as product development and commercialisation, since the global buyers do the tasks of these areas. In this paper, this question is applied to the global footwear industry.

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