Social Sustainability
Producer-Driven Chain
A value chain governed by large producers — as in aircraft, automobiles and semiconductors — contrasted with buyer-driven chains governed by retailers and brands.
Definition
A producer-driven chain is a type of global value chain, in Gary Gereffi's classic distinction, in which large, often transnational manufacturers control the chain through their command of capital, technology and production know-how — typical of capital- and technology-intensive industries such as aircraft, automobiles, computers and heavy machinery. The contrasting form, the buyer-driven chain, is governed by retailers and brands in labour-intensive consumer goods.
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