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

Table 1: The Different Governance Models of GVC in Morocco GVC Governance Place within the GVC Challenges Phosphates and Derivatives − Public governance − National mining resource − GVC orchestrated by OCP Group − Present throughout the entire value chain It is a Moroccan locomotive, with a corporate strategist around Business Unit network • Mining • Fertilizers • Research and development • (UM6P University) • Declared African ambition > Energy and Green transitions > A firmer regulatory environment requiring producers to renew their business models > Significant legal risks arising from the effects of certain chemicals on human health Automotive − European decision center − GVC structured by MNEs − GVC particularly accelerated by 2 manufacturers: Stellantis and Renault − Foreign locomotives Moroccan SMEs are very little integrated • Morocco has developed a modern infrastructure: The HST and the Tangier Med port are the backbone of this GVC • Electric and hydrogen car as further step > Constraining environmental standards requiring heavy investments (CO2 standard). > Upstream integration difficulties > Value sharing Agri-Food − Market-driven governance − GVC governed by European market (Spanish in particular) Multiple GVCs (sardines, tomatoes, citrus, red fruits, etc.) supported by the State and at the crossroads of two national sectoral plans (PAI and PMV) • Agricultural production capacity • Cost leadership • Product quality • Green (2nd phase of the Green Morocco Plan) > Food and water security > Health risks > R&D led by the private sector > Global trade tensions Textile and Clothing − Buyer-driven value chains − Spanish and Turkish brands dominate Moroccan textile industry The Spanish Inditex Group controls Moroccan subcontractors • Production cost • Industrial flexibility > Ecological and recycling textile > Market massification > High elasticity of demand > Sensitivity to prices In the context of Morocco, three actions can be implemented to accelerate the integration of Moroccan companies into Global Value Chains, including: • The restructuring of Moroccan SMEs through the creation of a national program or Joint-Venture fund to set up a learning curve allowing a gradual integration of Moroccan players into the international dynamics of GVCs. • The trend to mass-markets to obtain the necessary volume and critical mass that justify the canvassing and location of large locomotives. • Supporting industrial dynamics through specific training and R&D led by the private sector. In this case, the Moroccan Automotive Center of Stellantis and the Industrial Competence Centers of OCP (ICC) open the way to the emergence of new innovative and localized production sites. d) Main Learnings from the Morocco’s Economic Consolidation in the GVCs i. Private-private Initiatives and Territories First, it is necessary to target both the sector level and at the level of suppliers (foreigners and Moroccan) before developing the roadmap dedicated to quality upgrading. Thus, the integration of Morocco into the GVCs cannot address the needs of all the leading companies. At the same time, the goal is not to replace existing GVCs. It is, therefore, necessary to clarify the targets of the integration policy on two main axes: • A sector axis: The choice of target sectors must obey both the potential of the sectors, the specificity of the territories concerned, and the needs of GVC suppliers. • A supplier axis: Beyond the traditional population of suppliers with a high level of capital and education (the easiest to access population), it is a question of Building Sustainable and Stable Global Value Chains: Case Study of Morocco 7 Global Journal of Management and Business Research Volume XXIII Issue I Version I Year 2023 ( ) B © 2023 Global Journals