When is business an extension of state power, and when does it constrain it? State aspirations to restructure global supply chains amidst concentrating corporate power make this question central to understanding global order. In this event, Luuk Schmitz will present an analysis that draws from an original dataset of 16,413 corporate earnings calls annotated using a novel text-as-data approach with large language models.
He argues that three modes of supply chain restructuring co-exist. First, states push for restructuring 'from below' to integrate lower value-added but geopolitically critical functions in resource extraction and manufacturing. Second, big tech firms restructure 'from above' by massively expanding physical capital to build out hyperscaling capacity, enhancing their dominance across sectors and borders. Third, firms restructure supply chains 'from around' by routing their operations through connector countries, retaining market access while complying with market restrictions.
By documenting these modes, the speaker will expose how these findings contribute to debates on state-business relations, geopolitics, and the future of globalization.
Luuk Schmitz is a Senior Researcher at the Max Planck Institute for the Study of Societies in Cologne. He obtained his PhD from the EUI.