Strategic embedding? Regional governance and resilience in the beverage sector

Abstract

Abstract The disruptions following the COVID-19 pandemic revealed many vulnerabilities of the fragmented global economy. Simultaneously, the pandemic disrupted regional production, hindering regional value creation. In Germany, the Bavarian beer sector received high prominence during the COVID-19 pandemic, both for its symbolic cultural role and its economic impact. The strong role of exports and global reputation for the sectoral development makes it a relevant case at the interface of Global Production Network (GPN) and regional economic resilience debates. The prior concept places a strong focus on power and value creation but predominantly explains regional development based on exogenous factors. Meanwhile, the latter contributes arguments on regional adaptation to different kinds of crises but rarely operationalises them in relation to specific regional value chains and their relation to global markets. Hence, this contribution examines regional adaptation from a GPN perspective. Applying a mixed-methods approach, the study combines secondary data with a structured content analysis of newspaper articles. It thereby focuses on regional value creation and its multi-scalar linkages to understand the development during the crisis in the Bavarian beer sector. The analysis combines a value-creation mapping to quantify development with a governance mapping to intersect arguments of value, power, and embeddedness. The regional sector demonstrated notable stability and short-term recoveries. Strategic embedding through global linkages and regional embeddedness by regional lead firms was a key resource for overall regional adaptation.