Rethinking global value chains through MNE sustainable innovation: an antidote to deglobalization?

Purpose This perspective paper aims to extend the recent conversation on deglobalization in the context of the global value chain (GVC) framework. It highlights the positive role of sustainable innovation in GVCs, pursued by multinational enterprises (MNEs), as an antidote to the call for deglobalization. Design/methodology/approach Insights from relevant empirical incidents and case studies concerning Sustainable Development Goals12 (responsible production and consumption) and sustainable innovation have been used to illustrate the viewpoints and support the development of a set of conceptual arguments. Findings MNEs can play a critical role in the initiation and implementation of sustainable innovation in GVCs, which in turn contribute to social, economic and environmental development, especially in developing countries. Research limitations/implications Three key research avenues are suggested to guide future scholarship. These include formal institutions, informal institutions and digital transformation, which will affect how MNE sustainable innovation can contribute to GVC resilience and sustainability. Practical implications Three corporate innovation strategies are provided to guide future managerial practices relating to responsible production and consumption. These include co-investment in grassroots innovations, eco-innovation capability building and global standard setting. Social implications Pursuing MNE sustainable innovations contributes to social value creation in two main ways. One is the resilience of GVCs to enable developed and developing countries to remain interdependent for social-economic stability and growth. Two is the sustainability of GVCs to enable societies to benefit from green and advanced technologies that improve social-environmental conditions. Originality/value A novel conceptual perspective which explicates the nexus of MNE sustainable innovation and GVC resilience and sustainability in the context of geopolitical uncertainty and institutional diversity, as well as new research avenues for future scholarship, are introduced.