The Concept of Value Chain

The concept of value chain was put forward by Professor Michael Porter of Harvard University in 1985. It is a dynamic process of creating value, which is composed of different but interrelated production and business activities. In 2001, Griffin proposed the concept of global value chain when he analyzed the international division of labor and global industrial linkages. The concept of value chain provides a web-based approach to analyze the geographical and organizational characteristics of international production, revealing the dynamic characteristics of global industries.

Edited and translated by Zhang Yifei