Multidimensional role of services in global value chains Implications for theory and practice

This paper addresses the multiple roles services play in GVCs and in particular in value creation process of pure service GVCs. Based on case studies of service firms, it shows that the highest value added in pure service GVCs is created in the phase of development, design, marketing and customer relationship management. The findings question the applicability of the smiley curve model for the analysis of pure service GVCs. The paper highlights implications for firms strategies and policy design.