Social Sustainability
Producer-Driven Chain
Definition
A producer-driven chain is a type of global value chain, in Gary Gereffi's classic distinction, in which large, often transnational manufacturers control the chain through their command of capital, technology and production know-how — typical of capital- and technology-intensive industries such as aircraft, automobiles, computers and heavy machinery. The contrasting form, the buyer-driven chain, is governed by retailers and brands in labour-intensive consumer goods.
References
Supports definition and framing.
Overview
How it is used
The concept is used in value chain research, industrial policy and analysis of how environmental and labour standards propagate differently through different chain structures.
Why it matters
Chain governance determines who can set and enforce sustainability terms; the producer/buyer distinction is the foundational map of that power.