ALGORITHMIC GOVERNANCE AND THE RECONFIGURATION OF GLOBAL VALUE CHAINS: A CASE STUDY OF SHEIN’S ON-DEMAND MANUFACTURING MODEL
Keywords:
Global value chains, Algorithmic governance, Platform economy, On-demand manufacturing, Digital embeddingAbstract
This paper examines how algorithmic governance reshapes global value chains (GVCs) in the context of platform-based fast fashion. While prior research has explored platform governance and GVC organization separately, less attention has been paid to how algorithmic systems intervene in production processes at an operational level. Drawing on a qualitative case study of SHEIN, this study uses multiple sources of secondary data, including company disclosures, industry reports, and third-party analyses. A process-tracing approach is adopted to reconstruct the development of SHEIN’s on-demand manufacturing model. The findings suggest that algorithmic governance operates through three interrelated mechanisms: real-time demand sensing, small-batch production, and dynamic supply chain coordination. Together, these mechanisms enable a shift from a forecast-driven “push” model to a data-driven “pull” model, reducing inventory risk while improving responsiveness. By linking platform governance with GVC analysis, this paper provides a mechanism-based explanation of how data capabilities reshape production organization. It also highlights digital embedding as an alternative pathway for firms to participate in global value creation.References
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