MODELS OF SUPPLY CHAIN INTEGRATION INTO THE ARCHITECTURE OF GLOBAL VALUE CHAINS

Keywords: supply chains, global value chains, integration models, sustainability, risk management, digitalization, decarbonization, energy-related goods, corporate strategy, institutional coordination, sustainable development, business model transformation

Abstract

The article presents a comprehensive analysis of supply chain integration (SCI) within the architecture of global value chains (GVCs). Based on theoretical generalizations and empirical evidence, the study substantiates that integration acts as a key mechanism for aligning technological, spatial, and institutional dimensions of global production systems. It demonstrates that the coordination of physical, informational, financial, and managerial flows ensures the connection between stages of value creation, distribution, and realization, forming the structural “architecture” of GVCs. The paper systematizes seven core integration models - internal, external, vertical, horizontal, digital, environmental, and reverse - which together form the basis of end-to-end integration. Using case studies of leading global energy companies, the research shows that these models are most effectively implemented in energy supply chains that are shifting from centralized to network-based configurations encompassing both traditional and renewable energy sources, hydrogen technologies, digital platforms, and circular processes. Special attention is given to the Shell case, which demonstrates a multi-layered integration approach: internal coordination through unified ERP systems, external partnerships via blockchain-enabled supply chain tracking, digital transformation through IoT and AI tools, and sustainability-driven circular integration. Such a combination creates a “responsible” GVC architecture that links efficiency, resilience, and innovation. The findings confirm that supply chain integration enhances flexibility and adaptability of GVCs under conditions of geopolitical instability, technological transformation, and environmental regulation. The scientific novelty of the study lies in defining the architectural essence of supply chain integration as a system-forming element of GVCs and in identifying the seven interrelated integration models that together reflect the transition from operational efficiency to strategic and sustainability-oriented management.

References

Jiang, F., Isa, F. M., Ng, S. P., & Bhatti, M. The Impact of Supply Chain Integration to Supply Chain Responsiveness in Chinese Electronics Manufacturing Companies. Sage Open, 2023. 13(4). https://doi.org/10.1177/21582440231219070

Anwar, U.A.A., Rahayu, A., Wibowo, L.A. et al. Supply chain integration as the implementation of strategic management in improving business performance. Discov Sustain 2025. 6, 101. https://doi.org/10.1007/s43621-025-00867-w

Sacco, F., Magnani, G., & Previtali, P. Beyond the" eye of the storm": A processual and multi-layered approach to global value chain resilience. International Business Review, 2025. 102460. https://doi.org/10.1016/j.ibusrev.2025.102460

Garcés Iriarte, I., & Vogt, A. Global value chain integration and non-tariff measures. 2024. (No. 1432). https://doi.org/10.1016/j.econlet.2024.111518

Giunta, A., Marvasi, E. & Sforza, M. Digitalization and regionalization of Global Value Chains in European industries. J. Ind. Bus. Econ. 2025. 52, 599–628. https://doi.org/10.1007/s40812-025-00347-2

EC (2024) Global trade outlook and the resilience of Global Value Chains URL: https://economy-finance.ec.europa.eu/economic-forecast-and-surveys/economic-forecasts/autumn-2024-economic-forecast-gradual-rebound-adverse-environment/global-trade-outlook-and-resilience-global-value-chains_en (дата звернення: 24.09.2025)

Resilient and sustainable GVCs in turbulent times URL: https://www.wto.org/english/res_e/booksp_e/gvc_dev_rep23_e.pdf (дата звернення: 24.09.2025)

OECD Supply Chain Resilience Review Navigating Risks URL: https://www.oecd.org/content/dam/oecd/en/publications/reports/2025/06/oecd-supply-chain-resilience-review_9930d256/94e3a8ea-en.pdf (дата звернення: 24.09.2025)

Global value and supply chains URL: https://www.oecd.org/en/topics/policy-issues/global-value-and-supply-chains.html (дата звернення: 24.09.2025)

WB (2024) JANUARY 2024 Global Economic Prospects URL: https://thedocs.worldbank.org/en/doc/661f109500bf58fa36a4a46eeace6786-0050012024/original/GEP-Jan-2024.pdf (дата звернення: 24.09.2025)

Improving resilience and economic efficiency in global supply chains to counter shocks URL: https://blogs.worldbank.org/en/trade/improving-resilience-and-economic-efficiency-in-global-supply-ch (дата звернення: 24.09.2025)

Кривещенко, В., Хмурковський, Г., & Ляденко, Т. Оптимізація логістичних ланцюгів постачання в умовах глобальних криз. Економіка та суспільство, 2024. (63). https://doi.org/10.32782/2524-0072/2024-63-110

Mytsenko, V. The role of global value chains for the economic development of countries. Collection of Scientific Papers "Scientific Notes", 2023. 32 (3), 79-89. http://doi.org/10.33111/vz_kneu.32.23.03.07.052.058

Бойченко МВ, Осадчий. О. Особливості управління ланцюгами постачання українських фірм в умовах євроінтеграції; Економічний вісник Дніпровської політехніки; 2024 №2 (86) С. 93-105& https://doi.org/10.33271/ebdut/86.093

Yanovska, V., Król, M., & Pittman, R. The logistics of grain exports from wartime Ukraine: What are the highest priority areas to Address? Transportation Research Interdisciplinary Perspectives, 2025. 30, 101363. https://doi.org/10.1016/j.trip.2025.101363

Siemens (2024). Sustainability Report 2024. URL: https://assets.new.siemens.com/siemens/assets/api/uuid:32a7154d-edba-47bc-8e9b-9761617ba774/sustainability-report.pdf (дата звернення: 24.09.2025)

Flynn, B. B., Huo, B., & Zhao, X. The impact of supply chain integration on performance: A contingency and configuration approach. Journal of operations management, 2010. 28(1), 58-71. https://doi.org/10.1016/j.jom.2009.06.001

Global trade in the energy transition: Principles for clean energy supply chains & carbon pricing URL: https://www.energy-transitions.org/wp-content/uploads/2025/06/Global-trade-in-the-energy-transition_vf.pdf (дата звернення: 24.09.2025)

Agostino, M., Giunta, A., Ruberto, S., & Scalera, D. Global value chains and energy-related sustainable practices. Evidence from Enterprise Survey data. Energy Economics, 2023.127, 107068. https://doi.org/10.1016/j.eneco.2023.107068

Lema, R., Rabellotti, R. & Ambrogi, J. Seizing windows of opportunity in green global value chains: the role of industrial policies in middle-income countries. J Int Bus Policy. 2025. 8, 341–372 https://doi.org/10.1057/s42214-025-00219-5

Dr Jaap van Ede (2021) Shell improves their inbound supply chains URL: https://www.business-improvement.eu/worldclass/Shell_optimizes_supply_chains.php (дата звернення: 24.09.2025)

Smart management of boil-off gas across the LH2 supply chain URL: https://www.shell.com/what-we-do/technology-and-innovation/shell-techxplorer-digest/2024-2-shell-techxplorer-digest/_jcr_content/root/main/section_1944918422/text.multi.stream/1733905930539/a495f9a8f162da7f8412ab0cecb4d96b814f655b/STCHDigest2024_12_wijnans.pdf (дата звернення: 24.09.2025)

How Shell Leveraged Data, Digitalization, Safety, and Talent to Strengthen its Global Supply Chains URL: https://www.frost.com/growth-opportunity-news/how-shell-leveraged-data-digitalization-safety-and-talent-to-strengthen-its-global-supply-chains (дата звернення: 24.09.2025)

Shell’s enterprise journey to digital transformation URL: https://www.aveva.com/content/dam/aveva/documents/white-papers/WhitePaper_AVEVA_ShellDigitalTransformation_21-06.pdf (дата звернення: 24.09.2025)

The Role of Shell in Transforming the Petrochemical Sector URL: https://petrochemexpert.com/the-role-of-shell-in-transforming-the-petrochemical-sector (дата звернення: 24.09.2025)

Decentralized digital passport boosts supply chain efficiency URL: https://www.shell.com/what-we-do/digitalisation/blockchain/decentralised-digital-passport-boosts-supply-chain-efficiency.html (дата звернення: 24.09.2025)

Jiang, F., Isa, F. M., Ng, S. P., & Bhatti, M. (2023). The Impact of Supply Chain Integration to Supply Chain Responsiveness in Chinese Electronics Manufacturing Companies. Sage Open, 13 (4) Open, 13(4). URL: https://doi.org/10.1177/21582440231219070 (accessed September 18, 2025)

Anwar, U.A.A., Rahayu, A., Wibowo, L.A. et al. (2025). Supply chain integration as the implementation of strategic management in improving business performance. Discov Sustain 6, 101. URL: https://doi.org/10.1007/s43621-025-00867-w (accessed September 22, 2025)

Sacco, F., Magnani, G., & Previtali, P. (2025). Beyond the" eye of the storm": A processual and multi-layered approach to global value chain resilience. International Business Review, 102460. https://doi.org/10.1016/j.ibusrev.2025.102460 (accessed September 21, 2025)

Garcés Iriarte, I., & Vogt, A. (2024). Global value chain integration and non-tariff measures (No. 1432). https://doi.org/10.1016/j.econlet.2024.111518 (accessed September 20, 2025)

Giunta, A., Marvasi, E. & Sforza, M. (2025). Digitalization and regionalization of Global Value Chains in European industries. J. Ind. Bus. Econ. 52, 599–628 URL: https://doi.org/10.1007/s40812-025-00347-2 (accessed September 20, 2025)

EC (2024) Global trade outlook and the resilience of Global Value Chains URL: https://economy-finance.ec.europa.eu/economic-forecast-and-surveys/economic-forecasts/autumn-2024-economic-forecast-gradual-rebound-adverse-environment/global-trade-outlook-and-resilience-global-value-chains_en (accessed September 24, 2025)

Resilient and sustainable GVCs in turbulent times URL: https://www.wto.org/english/res_e/booksp_e/gvc_dev_rep23_e.pdf (accessed September 24, 2025)

OECD Supply Chain Resilience Review Navigating Risks URL: https://www.oecd.org/content/dam/oecd/en/publications/reports/2025/06/oecd-supply-chain-resilience-review_9930d256/94e3a8ea-en.pdf (accessed September 24, 2025)

Global value and supply chains URL: https://www.oecd.org/en/topics/policy-issues/global-value-and-supply-chains.html (accessed September 24, 2025)

WB (2024) JANUARY 2024 Global Economic Prospects URL: https://thedocs.worldbank.org/en/doc/661f109500bf58fa36a4a46eeace6786-0050012024/original/GEP-Jan-2024.pdf (accessed September 24, 2025)

Improving resilience and economic efficiency in global supply chains to counter shocks URL: https://blogs.worldbank.org/en/trade/improving-resilience-and-economic-efficiency-in-global-supply-ch (accessed September 24, 2025)

Kryveshchenko, V., Khmurkovsʹkyy, H., & Lyadenko, T. (2024). Optymizatsiya lohistychnykh lantsyuhiv postachannya v umovakh hlobalʹnykh kryz. [Optimization of logistic supply chains in conditions of global crises] Ekonomika ta suspilʹstvo, (63). URL: https://doi.org/10.32782/2524-0072/2024-63-110 (accessed September 18, 2025)

Mytsenko, V. (2023). The role of global value chains for the economic development of countries. Collection of Scientific Papers "Scientific Notes", 32 (3), 79-89. URL: http://doi.org/10.33111/vz_kneu.32.23.03.07.052.058 (accessed September 20, 2025)

Boychenko MV, Osadchyy. O. (2024). Osoblyvosti upravlinnya lantsyuhamy postachannya ukrayinsʹkykh firm v umovakh yevrointehratsiyi; Ekonomichnyy visnyk Dniprovsʹkoyi politekhniky; №2 (86) S. 93-105. URL: https://doi.org/10.33271/ebdut/86.093 (accessed September 21, 2025)

Yanovska, V., Król, M., & Pittman, R. (2025). The logistics of grain exports from wartime Ukraine: What are the highest priority areas to Address? Transportation Research Interdisciplinary Perspectives, 30, 101363. https://doi.org/10.1016/j.trip.2025.101363 (accessed September 21, 2025)

Siemens (2024). Sustainability Report 2024. URL: URL: https://assets.new.siemens.com/siemens/assets/api/uuid:32a7154d-edba-47bc-8e9b-9761617ba774/sustainability-report.pdf (accessed September 24, 2025)

Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of operations management, 28(1), 58-71. URL: https://doi.org/10.1016/j.jom.2009.06.001 (accessed September 20, 2025)

Global trade in the energy transition: Principles for clean energy supply chains & carbon pricing URL: https://www.energy-transitions.org/wp-content/uploads/2025/06/Global-trade-in-the-energy-transition_vf.pdf (accessed September 24, 2025)

Agostino, M., Giunta, A., Ruberto, S., & Scalera, D. (2023). Global value chains and energy-related sustainable practices. Evidence from Enterprise Survey data. Energy Economics, 127, 107068. URL: https://doi.org/10.1016/j.eneco.2023.107068 (accessed September 21, 2025)

Lema, R., Rabellotti, R. & Ambrogi, J. (2025) Seizing windows of opportunity in green global value chains: the role of industrial policies in middle-income countries. J Int Bus Policy 8, 341–372. URL: https://doi.org/10.1057/s42214-025-00219-5 (accessed September 20, 2025)

Dr Jaap van Ede (2021) Shell improves their inbound supply chains. URL: https://www.business-improvement.eu/worldclass/Shell_optimizes_supply_chains.php (accessed September 24, 2025)

Smart management of boil-off gas across the LH2 supply chain URL: https://www.shell.com/what-we-do/technology-and-innovation/shell-techxplorer-digest/2024-2-shell-techxplorer-digest/_jcr_content/root/main/section_1944918422/text.multi.stream/1733905930539/a495f9a8f162da7f8412ab0cecb4d96b814f655b/STCHDigest2024_12_wijnans.pdf (accessed September 24, 2025)

How Shell Leveraged Data, Digitalization, Safety, and Talent to Strengthen its Global Supply Chains URL: https://www.frost.com/growth-opportunity-news/how-shell-leveraged-data-digitalization-safety-and-talent-to-strengthen-its-global-supply-chains (accessed September 24, 2025)

Shell’s enterprise journey to digital transformation URL: https://www.aveva.com/content/dam/aveva/documents/white-papers/WhitePaper_AVEVA_ShellDigitalTransformation_21-06.pdf (accessed September 24, 2025)

The Role of Shell in Transforming the Petrochemical Sector URL: https://petrochemexpert.com/the-role-of-shell-in-transforming-the-petrochemical-sector (accessed September 24, 2025)

Decentralized digital passport boosts supply chain efficiency URL: https://www.shell.com/what-we-do/digitalisation/blockchain/decentralised-digital-passport-boosts-supply-chain-efficiency.html (accessed September 24, 2025)

Article views: 10
PDF Downloads: 1
Published
2025-09-29
How to Cite
Duginets, G., & Generalov, O. (2025). MODELS OF SUPPLY CHAIN INTEGRATION INTO THE ARCHITECTURE OF GLOBAL VALUE CHAINS. Economy and Society, (79). https://doi.org/10.32782/2524-0072/2025-79-168
Section
ECONOMICS

Most read articles by the same author(s)