Beyond the producer-driven/buyer-driven dichotomy - The evolution of global value chains in the Internet era

The Internet is still in the early stages of its development, but its impac t on global value chains is already evident. While it may be premature to t ry to identify lasting changes on producer-driven and buyer-driven chains, several possible scenarios are emerging and they are not mutually exclusive . The first scenario is that electronic commerce will lead to the emergence of infomediary-based value chains that privilege direct on-line access to consumers. A second scenario is that the Internet is really just extending the logic of buyer-driven chains as both information and power continue to shift inexorably from manufacturers, marketers and retailers to consumers. A third scenario is that the impact of the Internet will be captured and in tegrated into the practices of large established companies, thus reinforcin g power relationships in existing producer-driven and buyer-driven governan ce structures. Although there is evidence to support all three scenarios, t he third model currently seems to be dominant.