ROLE OF DIGITAL ECONOMY IN THE RECONFIGURATION OF GLOBAL VALUE CHAINS: THEORETICAL FRAMEWORK AND EMPIRICAL VERIFICATION

Abstract

The expansion of the digital economy, characterised by the widespread use of information and communication technologies, large-scale data analytics, and online platforms, has reshaped the configuration and functioning of global value chains. This review examines how digitalisation is altering the structure, coordination mechanisms, and overall performance of value chains across different sectors and regions by drawing on conceptual discussions and empirical evidence. The analysis highlights that digital technologies enhance operational adaptability, reduce coordination and transaction expenses, and enable geographically dispersed firms to collaborate instantaneously. In addition, platform-based systems and data-centred innovations have emerged as key drivers of value chain reorganisation, allowing firms to access new markets, optimise production arrangements, and strengthen their competitive positioning. The paper also outlines implications for managerial and policy decision-making, emphasising the importance of expanding digital infrastructure, establishing regulatory arrangements that facilitate international data mobility, and adopting forward-looking strategies in response to evolving digital environments. Collectively, these insights contribute to a comprehensive understanding of how digital transformation is reshaping global production and trade patterns.