Global Value Chains and the Environmental Sustainability of Emerging Market Firms: A Systematic Review of Literature and Research Agenda

The globalization of production has brought significant growth and connectivity opportunities to firms and workers in emerging markets. However, research on the interplay between global value chains (GVCs) and emerging market firms’ environmental sustainability remains fragmented. A coherent picture of the dispersed body of knowledge on the environmental implications of global production vis-à-vis emerging market firms is lacking. This paper integrates research on GVCs and emerging market firms’ environmental sustainability through a systematic literature review. Findings reveal important descriptive and thematic characteristics of the current body of knowledge. They point to the increasingly important yet dual and multilayered role of GVCs in environmental sustainability of emerging market firms. They also highlight the importance of emerging market firms’ strategies, capabilities, and collaborative GVC relationships to enable the effective implementation of environmental practices in emerging markets and support the environmental sustainability of GVCs. The review highlights a lack of theorization in analyzing this topic and develops an appropriate research agenda.