Local Firm Upgrading in Global Value Chains

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The analysis focuses on how companies can innovate and transform their business models to ascend the value chain. By merging insights from global value chain and business model literature, a new framework for local firm upgrading is established. Empirical findings reveal that local firms possess agency beyond their roles in the global value chain, with significant inter-firm differences. The research highlights the founder's critical role as a key driver in the upgrading process, emphasizing the importance of individual leadership in fostering firm development.