Global platforms like Shein and Temu have invented 'algorithmic captivity'—a way to control their whole supply chain without actually owning anything.
March 30, 2026
Original Paper
Platform Orchestrators and Algorithmic Captivity: Theorizing Digital Governance in Global Value Chains
SSRN · 6487425
The Takeaway
Traditional international business relies on contracts or ownership to manage suppliers, but these platforms use real-time data and automated algorithms to dictate manufacturing behavior. This creates a new form of power asymmetry where suppliers are 'captured' by the platform's code rather than legal obligations.
From the abstract
Digital platforms are remaking global production and international trade, yet established international business theory lacks adequate frameworks to explain how platforms simultaneously orchestrate manufacturing networks and reconfigure supplier relationships at the ecosystem level. We address the question: how do digital platform orchestrators constitute a new mode of global value chain (GVC) governance by servitizing the export function at the network rather than the firm level, and with what