How do intergovernmental organizations embed themselves in global value chains: A case study of Gavi


Abstract

Objective: The article’s objective is to understand how non-MNE actors in the global arena, like intergovernmental organizations (IGOs) embed themselves in the global value chain by using their strong ties to states.

Research Design & Methods: For this study, a qualitative methodology approach investigates an underexplored area of research using a single case study, GAVI, that utilizes thick data.

Findings: The paper contributes to our understanding of IGOs and how they internationalize. New motives are identified, and the concept of soft power has been extended to IGOs.

Implications & Recommendations: IGOs in the humanitarian or developmental sector use soft power strategies to embed themselves in the global value chain. The paper’s implications are for policymakers and practitioners in the third sector, including those who invested interest at state-represented foreign direct investment. Future studies can look at how networks are leveraged, spillover occurs from a personal level to an institutional level, and vice-versa combining diplomacy, bargaining, and legitimacy.

Contribution & Value Added: The study highlights new areas of research like that of soft power. The current internationalization models of SMEs and MNEs may not neatly fit in the context of IGOs (which are born global). We reiterate that existing IB theories need to be applied to other state actors like sovereign wealth funds and non-governmental organizations. The above case study, a detailed historical analysis using thick data, is a methodology not often published.


Keywords

Global value chain; soft power; legitimacy; strategic seeking FDI; GAVI; Global factory

Aid Transparency Index (2020). 2020 Aid Transparency Index. Retrieved fromhttps://www.publishwhatyoufund.org/wp-content/uploads/dlm_uploads/2020/06/2020-Aid-Transparency-Index-report.pdf on 1 May 2021.

Alcacer, J.,& Ingram, P. (2013). Spanning the institutional abyss: The intergovernmental network and the governance of foreign direct investment. American Journal of Sociology, 118, 1055- 1098.

Balakrishnan, M. S. (2020). Business with Purpose: Advancing Social Enterprise. World Scientific.

Beckfield, J. (2003). Inequality in the world polity: The structure of international organization. American Sociological Review, 68(3), 401-424.

Behrendt, S. (2009). Gulf Arab SWFs: Managing wealth in turbulent times and beyond. Carnegie Endowment for International Peace. Carnegie Middle East Center, 16, 1-56. Retrieved from: https://carnegieendowment.org/files/sovereign_wealth_turbulent.pdf

Bianchi, C.C., & Arnold, S.J. (2004). An institutional perspective on retail internationalization success: Home Depot in Chile. International Review of Retail, Distribution and Consumer Research, 14(2), 149-169.

Bianchi, C.C., & Ostale, E. (2006). Lessons learned from unsuccessful internationalization attempts: Examples of multinational retailers in Chile. Journal of Business Research, 59(1), 140-147.

Birkinshaw, J., Brannen, M. Y., & Tung, R. L. (2011). From a distance and generalizable to up close and grounded: Reclaiming a place for qualitative methods in international business research. Journal of International Business Studies, 42, 573-581. https://doi.org/10.1057/jibs.2011.19

Boehmer, C., Gartzke, E., & Nordstrom, T. (2004). Do intergovernmental organizations promote peace?. World Politics, 57(1), 1-38.

Bourdieu, P. (1990). The logic of practice. Stanford University Press.

Buckley, P.J. (2004).The role of China in the global strategy of multinational enterprises. Journal of Chinese Economic and Business Studies, 2(1), 1-25.

Buckley, P.J. (2009a). The impact of the global factory on economic development. Journal of World Business, 44(2), 131143.

Buckley, P.J. (2009b).The rise of the Japanese multinational enterprise: then and now. Asia Pacific Business Review, 15(3), 309-321.

Corbin, J., & Strauss, A. (2014). Basics of qualitative research: Techniques and procedures for developing grounded theory. Sage Publications.

Covaleski, M.A., & Dirsmith, M.W. (1991). The management of legitimacy and politics in public sector admin-istration. Journal of Accounting and Public Policy, 10(2), 135-156.

Deephouse, D.L., & Carter, S.M. (2005). An examination of differences between organizational legitimacy and organizational reputation. Journal of Management Studies, 42(2), 329-360.

Doz, Y. (2011). Qualitative research for international business. Journal of International Business Studies, 42(5), 582-590.

Dunning, J.H., (1988). Explaining International Production. Unwin Hyman.

Dunning, J.H., (1993). The Globalization of Business. Routledge.

Dunning, J.H. (2001). The eclectic (OLI) paradigm of international production: past, present, and future. International Journal of the Economics of Business, 8(2), 173-190.

Dunning, J.H., & Lundan, S.M. (2008). Multinational enterprises and the global economy. 2nd ed. Edward Elgar Publishing Limited.

Eisenhardt, K.M., & Graebner, M.E. (2007). Theory building from cases: Opportunities and challenges. The Academy of Management Journal, 50(1), 25-32.

European Parliament (2020). Understanding the financing of intergovernmental organizations. A snapshot of the budgets of the UN, NATO and WTO. Retrieved from https://www.europarl.europa.eu/RegData/etudes/BRIE/2020/652084/EPRS_BRI(2020)652084_EN.pdf on 1 June 2021.

Fan, Y. (2008). Soft power: Power of attraction or confusion. Place Branding and Public Diplomacy, 4(2), 147-58.

Freeman, S., Edwards, R., & Schroder, B. (2006). How smaller born-global firms use networks and alliances to overcome constraints to rapid internationalization. Journal of International Marketing, 14(3), 33-63.

Gallarotti, G. M. (1989). Legitimacy as a capital asset of the state. Public Choice, 63(1), 43-61.

Gavi. (2019). Vaccine Goal Indicators. Retrieved from: https://www.gavi.org/programmes-impact/our-impact/measuring-our-performance/2016-2020-indicatorsAccessed 12 May, 2020.

Gereffi, G., & Korzeniewicz, M. (Eds.). (1994). Commodity chains and global capitalism. ABC-CLIO, No. 149.

Goldstone, J.A. (1991). Revolution and rebellion in the early modern world. University of California Press.

Grant, R.M. (2003). Strategic planning in a turbulent environment: Evidence from the oil majors. Strategic Management Journal 24(6), 491-517.

Ha, Y.J., & Giroud, A. (2015). Competence-creating subsidiaries and FDI technology spillovers. International Business Review, 24(4), 605-614.

Hallin, C., & Lind, C.H. (2012). Revisiting the external impact of MNEs: An empirical study of the mechanisms behind knowledge spillovers from MNE subsidiaries. International Business Review, 21(2), 167-179.

Haynes, J., Hough, P., Malik, S., & Pettiford, L. (2017). World politics: International relations and globalisa-tion in the 21st century. Sage.

Hocking, B. (2006). Multi-stakeholder diplomacy: forms, functions, and frustrations. In J. Kurbalija & V. Katrandjiev (Eds), Multi-stakeholder diplomacy: Challenges and opportunities(pp. 13-29). DiploFoundation.

Hoon, C. (2013). Meta-synthesis of qualitative case studies: An approach to theory building. Organizational Research Methods, 16(4), 522-556.

Hough, M., Jackson, J., Bradford, B., Myhill, A., & Quinton, P. (2010). Procedural justice, trust, and institu-tional legitimacy. Policing: a Journal of Policy and Practice, 4(3), 203-210.

Ingram, P., Robinson, J., & Busch, M. L. (2005). The intergovernmental network of world trade: IGO connectedness, governance, and embeddedness. American Journal of Sociology, 111(3), 824-858.

IMF (2018). Annual Report. Retrieved from https://www.imf.org/external/pubs/ft/ar/2018/eng/assets/pdf/imf-annual-report-2018.pdf on 1 May 2021.

Jackson, J. H. (2006). Sovereignty, the WTO, and changing fundamentals of international law. Cambridge University Press.

Jandhyala, S., & Phene, A. (2015). The role of intergovernmental organizations in cross-border knowledge transfer and innovation. Administrative Science Quarterly, 60(4), 712-743.

Kappen, P. (2011). Competence-creating overlaps and subsidiary technological evolution in the multinational corporation. Research Policy, 40(5), 673-686.

Koremenos, B., Lipson, C., & Snidal, D. (2001). The rational design of international institutions. International Organization, 55(4), 761-799.

Lee,T.(2010).Theriseofinternationalnon-governmentalorganizations:Atop-downorbottom-upexplanation?.Voluntas: International Journal of Voluntary and Non-profitOrganizations,21(3),393-416.

Lorrain, F., & White, H. C. (1971). Structural equivalence of individuals in social networks. Journal of Mathe-matical Sociology, 1(1), 49-80.

Mearsheimer, J. J. (2011). The false promise of international institutions. In J.J. Mearsheimer (Ed.), Security Studies(pp. 153-161). Routledge.

Meyer, K.E. (2015). What is “strategic asset seeking FDI”?. Multinational Business Review, 23(1), 57-66.

Meyer, J. W., & Rowan, B. (1977). Institutionalized organizations: Formal structure as myth and ceremony. American Journal of Sociology, 83(2), 340-363.

Meyer, K. E., Wright, M.& Pruthi, S. (2009). Managing knowledge in foreign entry strategies: A resource-based analysis.Strategic Management Journal, 30(5), 557-574.

Milner, H. V. (1999). The political economy of international trade. Annual Review of Political Science, 2(1), 91-114.

Moore, E., Brandl, K., & Dau, L. A. (2019). Institutional schisms in Argentina: The impact of intergovernmen-tal organizations on country institutional environments. In: International Business in a VUCA World: The Changing Role of States and Firms (pp.89-102). Emerald Publishing Limited.

Narula, R. (2006). Globalization, new ecologies, new zoologies, and the purported death of the eclectic para-digm. Asia Pacific Journal of Management, 23(2), 143-151.

Narula, R., & Dunning, J.H. (2000). Industrial development, globalization and multinational enterprises: new realities for developing countries. Oxford Development Studies, 28(2), 141-167.

Narula, R. & Zanfei, A. (2004). Globalization of innovation: The role of multinational enterprises -Oxford Handbook of Innovation. Oxford University Press.

Newman, J., Cherney, A. & Head, B.W., (2016). Do policymakers use academic research? Reexamining the “two communities” theory of research utilization. Public Administration Review, 76(1), pp.24-32.

Nye, Jr. J.S. (1990). Soft power. Foreign Policy, 80, 153-171.

Nye Jr, J. S. (2008). Public diplomacy and soft power. Annals of the American Academy of Political and Social Science, 616(1), 94-109.

Nye Jr, J. S. (2009). Soft Power: The Means To Success In World Politics. Hachette UK.

Oviatt, B.M., & McDougall, P.P. (2005). Defining international entrepreneurship and modeling the speed of internationalization. Entrepreneurship Theory and Practice, 29(5), 537-553.

Pananond, P. (2015). Motives for foreign direct investment: a view from emerging market multinationals. The Multinational Business Review, 23(1), 77-86.

Pfeffer, J. (1981). Management as symbolic action: the creation and maintenance of organizational paradigm. Research in Organizational Behavior, 3, 1-52.

Shenkar, O. (2004). One more time: International business in a global economy. Journal of International Business Studies, 35(2), 161-171.

Suchman, M.C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571-610.

Suddaby, R. (2010). Challenges for institutional theory. Journal of Management Inquiry, 19(1), 14-20.

Stephens Balakrishnan, M. (2016). Gavi: The vaccine alliance: Saving lives one vaccine at a time, In M.S. Balakrishnan & V. Lindsay (Eds.), Actions and Insights: Middle East North Africa (pp. 136-192). Emerald Publishing.

Stephens Balakrishnan, M.& Moonesar, I.A. (2011). Advanced Technology Investment Company(ATIC): a destination, global champion. Emerald Emerging Markets Case Studies, 1(4), 1-20.

Stephens Balakrishnan, M. & Moonesar, I.A. (2017). UAE Sovereign Wealth Funds as Enablers of the Global Factory. November, Issue 45, Mohammed Bin Rashid School of Government.

Teegen, H., Doh, J.P., & Vachani, S. (2004). The importance of non-governmental organizations (NGOs) in global governance and value creation: An international business research agenda. Journal of International Business Studies, 35(6), 463-483.

Turchin, P., & Nefedov, S.A. (2009). Secular cycles. Princeton University Press.

UIA (2018). Union of International Associations. Retrieved from https://uia.org/on 21 January 2021.

Vabulas, F., & Snidal, D. (2013). Organization without delegation: Informal intergovernmental organizations (IIGOs) and the spectrum of intergovernmental arrangements. Review of International Organizations, 8(2), 193-220.

Weststeijn, A. (2014). The VOC as a company-state: Debating seventeenth-century Dutch colonial expansion. Itinerario, 38(1), 13-34.

White, C. L. (2012). Brands and national image: An exploration of inverse country-of-origin effect. Place Branding and Public Diplomacy, 8(2), 110-118.

Yin, R. K. (1994). Case study research: design and methods. Thousand Oaks, CA.

Zucchella, A., Palamara, G., & Denicolai, S. (2007). The drivers of the early internationalization of the firm. Journal of World Business, 42(3), 268-280.

Download

Published : 2021-09-01


StephensM., & MoonesarI. A. (2021). How do intergovernmental organizations embed themselves in global value chains: A case study of Gavi. International Entrepreneurship Review, 7(3), 7-21. https://doi.org/10.15678/IER.2021.0703.01

Melodena Stephens 
Mohammed Bin Rashid School of Government   United Arab Emirates
https://orcid.org/0000-0001-7933-2750

Professor of Innovation Management at Mohammed Bin Rashid School of Government (UAE). Ph.D.in Management Studies (2004, Bharati Vidyapeeth University, India). Her research interests include branding, country soft power, social impact, and scaling.


Immanuel Azaad Moonesar  immanuel.moonesar@mbrsg.ac.ae
Mohammed Bin Rashid School of Government  United Arab Emirates
https://orcid.org/0000-0003-4027-3508

Associate Professor of Health Administration and Policy at Mohammed Bin Rashid School of Government (UAE).Ph.D.in Health Services-Leadership (Walden University, USA). His research interests include international business policy, health policy, public policy, social policy, policy analyst, maternal and child health care policy.






Creative Commons License

This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.

1. The author agrees to publish his article free of charge in the journal "International Entrepreneurship Review" (IER) in the language of the above publication (English). The editorial staff reserves the right to shorten texts and to change titles.

2. The journal allows the authors to keep their copyrights (the copyright) in accordance with the license: Creative Commons CC BY 4.0 from 2023 (since vol. 9, no 1). By the end of 2022 we published under Creative Commons CC BY-ND 4.0.

Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) only the final version of the article, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access). We advise to use any of the following research society portals:

- ResearchGate
- SSRN
- Academia.edu
- Selected Works
- Academic Search