Value creation and capture in the 300 largest companies in Czechia: What role does position in global production networks play?

Abstract

In the paper, we employ a global value chain / global production network framework to examine value creation and especially value capture by various types of companies. The analysis is based on economic performance indicators from the 300 largest companies in Czechia based on turnover from 2014 to 2019. However, the hypothesized pattern of value capture was not confirmed in the case of foreign-owned companies. This finding suggests that an important role is played by the mandates multinationals assign to their national branches. The analysis also showed that companies operating in the service sector, broadly conceived, tend to capture less value than manufacturing firms. Finally, companies in both the manufacturing and service sector with access to the end market tend to capture greater value than companies without such access. Overall, our empirical analysis of value captured demonstrates that the assumption of a straightforward relationship between company position within a global value chain or global production network and value capture can be overly simplistic.