The purpose of this paper is twofold. Firstly, it seeks to explore the perceptions of the dynamics of power and potential shifts in governance they generate in a producer-driven industry. Secondly, it aims to identify how subcontracting SMEs, faced with changes that are raising into question their local big contractors’ dominance, strategically respond to this new Global Value Chain (GVC) reality. The methodology is based on a design of narratives and a qualitative case study of four subcontracting SMEs from the upstream segment of the space industry in France. Our findings reveal the way the transformative force of dynamics of power in the space industry initiated in one country (USA) is perceived and operationalized in other countries (France, Europe) that are implicated in the GVC. Secondly, we demonstrate that these dynamics, although visible at all levels, do not result in a change in governance and instead create uncertainty, which constitute sources of friction for subcontracting SMEs. Thirdly, we expose SMEs’ strategic responses to these frictions, which are based on increased engagement in technology and international expansion. For this purpose, subcontractors maintain solid relationships with local prime contractors whilst structuring innovation capabilities and increasing network visibility on foreign markets.

This study explores how multinational firms configure their subunits operating in diverse intellectual property rights (IPR) contexts. While prior research suggests that partitioning decision rights can mitigate misappropriation risks, we argue that decision delegation more aptly reflects the balance between knowledge protection and creation. We propose that the effect of IPR differences on decision delegation is mediated by subunits’ knowledge strategy, namely local knowledge openness and internal supply flows. These arrangements suppress the direct influence of IPR. We find support for our arguments from data on 401 foreign subunits. This study advances understanding of the complex considerations shaping decision delegation in multinational firms as corporate parents configure subunits for competitiveness. The findings highlight the importance of aligning strategies and structures to manage diverse institutional conditions.

This viewpoint piece seeks to advance the understanding of game-changer business models and emphasizes the need to scale them globally to tackle grand challenges. It explores factors that facilitate (or constrain) their global scaling and how they harness Industry 4.0 technologies in addressing grand challenges. The paper draws on existing literature from global scaling and sustainable business model innovation research to outline a conceptual framework. This framework includes their facilitators (or constraints), how they employ Industry 4.0 technologies to transform their business model components, sustainability outcomes and their various manifestations. To exemplify the framework, the paper provides four case examples from the energy sector. The proposed conceptual framework is instrumental for international business scholars to empirically investigate and enhance the understanding of game-changer business models. Furthermore, the paper offers managerial and policy implications to facilitate the rapid scaling of these models.