Global Journal of Management and Business Research, B: Economics and Commerce, Volume 23 Issue 1

value chains of global businesses are today driven by international locomotives with which local producers are Tier #1 and #2 equipment manufacturers. However, leading companies are often multinationals and rarely set up Joint Ventures (JV) with Moroccan companies. In most case, the local SMEs often act only in Tier #3 as subcontractors, or even Tier #4 deeply dependent on the MNEs decision. This is not new but raises many concerns about the ability to capture the value and operate sustainable steps of value chains. The important challenge for Morocco today is to go backward gradually. The scheme would be subcontracting, then signing JV, and after becoming national locomotives, at least regional. This observation applies to Morocco's so- called "global professions" sectors such as automotive, aeronautics, and electronics. For the GVC of the Agri-food industry, the value chain is surely backed by solid local agriculture. Morocco has national leaders such as Cosumar, Lesieur, and Copag Jaouda, etc. The same configuration applies to phosphate and fertilizer industries, and the fishing industry. However, actors take advantage of access to specific assets, but very few take the leadership in their own global GVC. The OCP group in the phosphate industry appears an exception. In addition, our diagnosis of the GVC of textiles and clothing highlights two trends that must be considered. First, the positioning of Turkey is based on a very competitive pricing policy fighting with local producers. Second, the upstream integration (fabric) is very expensive, thus requiring more capital, energy, and R&D. It is, therefore, appropriate for the case of Morocco to capitalize on national success stories such as Diamantine and Marwa by proposing an authentic and traditional offer, but it is far to obtain a solid control of a large part of textile GVC. Considering the four case studies we analyze in this paper, it appears that GVCs governed by private national (OCP governance) or MNEs (case of Stellantis and Renault groups) adopt two complementary initiatives to implement their shared value strategies: • An industrial initiative (purchasing processes dedicated to local companies), • A societal initiative (sustainability and entrepreneurship programs). Thanks to the strict control of an essential mining resource, the OCP Group has successfully completed an industrial transformation enabling it to make a transition toward high value-added products (fertilizers and derivatives). Thus, R&D has become an essential area of activity and competence for OCP. In automotive, the merger of PSA and Fiat Chrysler to create Stellantis has led to a more integrated and competitive industrial group. The key infrastructures like Tangier Med Port and the HST are the backbone of this automotive GVC. MNEs take advantage of these huge national investment efforts, and the industrial ecosystems expect to take advantage for enlarging their scope of activities and control of value added. Moreover, despite the support of the government, the less sophisticated GVCs (Agri-Food and Textile) remain dominated by buyers or global brands. Moroccan companies appear mostly like local producers, and they must find the industrial critical mass and improve the quality of products, in hyper- competitive contexts. Building Sustainable and Stable Global Value Chains: Case Study of Morocco 6 Global Journal of Management and Business Research Volume XXIII Issue I Version I Year 2023 ( ) B © 2023 Global Journals Moreover, our study shows how it is necessary to distinguish between global and traditional GVCs. The ESG as levers for GVC performance. These are essential components of the firms' strategy.