Governance & Policy
Relational Value Chain
A value chain governed through dense, trust-based relationships between buyers and suppliers, where key knowledge is exchanged face to face.
Definition
A relational value chain is one of five governance types in global value chain theory (Gereffi, Humphrey and Sturgeon), characterised by complex transactions and high supplier capabilities, where coordination relies on dense information exchange, mutual dependence and reputation rather than price signals or direct ownership. Relationships are built over time and switching costs are high for both parties.
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