Review Paper on Impact of Global Value Chain on the Performance of SME

The research aims to address two questions that tighten the development nexus between SME development and Global Value Chain (GVC). Does GVC participation enable SMEs to attain benefits that would otherwise be out of their reach? What characteristics of firms that are likely to determine SME participation in GVC? The analysis examines the impacts of GVC participation on SME performance by five researchers in four countries namely Sri Lanka, India, Indonesia and Thailand. The impact of GVC on SME had been examined based on human capital, Trade, firms innovation in their respective countries and particularly to the coffee farmers in Indonesia. Researchers have found statistically significant on their parameters. In addition, the empirical results show that firm size, training of employees, and direct exports of SMEs play a vital role in determining the likelihood of their participation in GVC