Sahoo, Smruti, Ranjan Kumar, Dinesh and Arora, Kashika  <br/><br/>
Does participation in the global value chain affect product sophistication of family firms: Evidence from the Indian manufacturing sector 

 - Indian Institute of Foreign Trade  
 - 26(2), Apr-Jun, 2024: p.103-114 
<br/><br/> This article examines whether participation in global value chains (GVCs) influences product sophistication among family-owned firms in India’s manufacturing sector. Family firms, which dominate India’s industrial landscape, often face unique challenges in balancing tradition, control, and innovation. The study investigates how integration into GVCs—through exports, imports, and foreign collaborations—affects their ability to upgrade product quality, diversify offerings, and enhance competitiveness. Evidence suggests that while GVC participation provides access to advanced technologies, knowledge spillovers, and international standards, family firms’ governance structures and risk aversion can moderate these benefits. The paper highlights sectoral variations, noting that firms in industries with higher exposure to global competition tend to achieve greater sophistication. By situating the analysis within debates on industrial upgrading and globalization, the study underscores the importance of policy frameworks that support family firms in leveraging GVC participation for innovation and sustainable growth. The paper investigates the productivity of family firms within the context of global value Chains (GVCs), utilizing a methodology centered on assessing product sophistication and upgrading. Drawing on a comprehensive dataset spanning 903 family firms over the period of 2008–2018, sourced from the Center for Monitoring Indian Economy (CMIE) Prowess database, the study delves into the dynamics of Indian manufacturing firms. The findings underscore a noteworthy and positive correlation between GVC participation and product sophistication among family firms. This highlights the pivotal role of family enterprises involved in GVCs in producing and exporting highquality goods, thereby encapsulating an inherent technological competitiveness. Moreover, the preliminary analysis highlights the significance of forward linkages, indicative of the product sophistication achieved by these family firms.- Reproduced <br/><br/>https://publication.iift.ac.in/Articles/269.pdf<br/> 
<br/><br/><label>Subjects--Topical Terms: </label><br/>Global Value Chains (GVCs), Family Firms, Product Sophistication, Indian Manufacturing, International Trade, Innovation, Competitiveness, Emerging Markets, Industrial Policy