Global value chain breadth and firm productivity: the enhancing effect of Industry 4.0

Purpose Global value chains (GVC) incorporate internationally fragmented sources of knowledge so as to increase global competitiveness and performance. This paper sheds light on the role Industry 4.0 technological capabilities in facilitating access from international linkages improving firm productivity. Design/methodology/approach Drawing organizational learning research, present study argues that relationship between GVC breadth, analyzed respect geographical fragmentation production facilities productivity follows an inverted U-shaped pattern can be explained by interplay external coordination costs associated with breadth. We test our predictions using a purpose-built survey was carried out among sample 426 Spanish manufacturing firms. Findings Our results indicate organizations adhering traditional system are able benefit fewer transnational relationships (concretely 11 foreign facilities) search for improvements. largely attributed marginal accessed coordinating counterparts' transfer. However, reveals adoption technologies has potential broaden optimal terms number interrelate 131 obtain gains while mitigating complexities coordination. Originality/value The unveils enable management broader counteracting counterparts.