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Transnational Corporations Review ; : 16, 2022.
Article in English | Web of Science | ID: covidwho-1852808


This paper aims at mapping machinery value chains in Brazil to check the validity of the smiling curve and the impacts of the COVID-19 crisis, investigating opportunities for upgrading. The empirical methodology is based on qualitative research among 50 machinery manufacturing companies in three steps: online survey, interviews, and poll. The main conclusion is that the executives in our sample are sceptical about the smiling curve in Brazil. The COVID-19 crisis seriously impacted most of the consulted machinery companies, and it has caused significant disruptions in their value chains. Companies that reduced their chain's dependence on suppliers, relying on local networks and verticalization, had more hedge against those ruptures. The executives have shown eight fields of opportunities to upgrade in value chains. The paper contributes to the international literature on Management through its innovative methodology and insights for companies from developing countries.