Integrating SMEs into Global Value Chains: Policy Principles and Best Practices

SWOT Analysis of the Five Selected Sectors Based on the understanding of GVCs in the five selected sectors, and the expectations and requirements of MNCs on SME suppliers, this paper uses the SWOT analysis to compare prospects for SMEs to participate in the GVCs of the five sectors. [...] The analysis shows that for SMEs in developed and newly-industrialized economies, the agriculture and electronics sectors offer the higher potential to participate in GVCs; and for SMEs in developing economies, the electronics and handicraft sectors offer the better prospects. [...] The Food Processing Global Value Chain Differing from the agriculture GVC in the previous section, the food processing GVC extends longer with different levels of handling, processing and packaging between the producers and the consumers. [...] The lead firms select a set of standards to govern the value chain to ensure food safety and product quality, and the standards in turn help the lead firms to structure their value chain and form a strategy. [...] The Electronics Global Value Chain The electronics industry began in the twentieth century during the second industrial revolution and is the most dynamic and important manufacturing sector in the global economy.