Externalities in global value chains: fishing industry in the brazilian Amazon region

Externalidades em cadeias globais de valor: atividade de pesca na região amazônica brasileira

ABSTRACT

Purpose

– The purpose of this article is to identify externalities in the chain and recommend strategies for the participating companies to either avoid or, at the very least, minimize negative externalities.

Design/methodology/approach

– case study, utilizing data obtained from different sources, including interviews and observations, in addition to other sources such as government documents, videos, and reports.

Findings

– The lack of a holistic approach to the supply chain hinders value generation in the region. Some externalities generated are prices below their potential, environmental consequences, and the perpetuation of social issues in the region.

Research limitations/implications

– The limitations of this study are related to the method adopted and the volume of conducted interviews. Thus, as in case studies, the results cannot be generalized. As a suggestion for future studies, replicating the method in other supply chains are suggested, which could be useful to confirm the mapping and analysis of the supply chain, considering the perspective of each link, covering them completely for a complete and detailed analysis.

Practical implications

– The analysis should not consider the success of an individual participant or node in isolation. For the supplies chain to be competitive, it is not sufficient for only a few nodes or participants to achieve positive results.

Social implications

– avoidance of environmental consequences and the perpetuation of social issues associated with the region.

Originality/value

– A holistic approach to the production chain can generate value in the region, avoiding negative externalities.

Keywords:
Negative externalities; Global value chain; Supply chain; Brazilian Amazon region; Arapaima Gigas fish