The concept of the value chain
The concept of the value chain derives, per Wikipedia, from the “science” of business management; it was popularized by Harvard Business School poobah Michael Porter. That should be enough to make any thinking person suspicious; and indeed, the bourgeois theory of the value chain cannot possibly be well-founded, given that bourgeois economics has no credible theory of value. The broad notion, however, is intrinsically attractive to Marxists, who do have a scientific framework for understanding the creation, translation, and metamorphoses of value through the circuits of capital. There is a body of Marxist research on (global) value chains and “commodity studies,” with which I am sadly mostly unfamiliar. In any event, for the purposes of this piece, a very rudimentary instantiation of the concept will suffice.
Fix some commodity in your mind–a wool coat, say–and imagine all the stages in its production and circulation, from being worked up from raw materials, transported through different stages of production, warehoused, shipped, and finally sold to the consumer. The creation, augmentation, movement, and conversion of this value proceeds through a series of stages, easily visualized as the links in a chain; ie, the value chain. The chain metaphor is particularly useful since it is easy to think of distinct value chains “linking” to one another; the value chains for wool and buttons clearly link to the coat’s chain, for instance. Value chains have complex interconnections in any developed capitalist society, and when finance capital is introduced, the chains become even more entangled.