Muhammad Ayaz, the Mittal Institute’s Syed Babar Ali Fellow, is a researcher dedicated to exploring the impact of globalization on production in developing countries. He is an Assistant Professor at the Institute of Business Administration (IBA) Karachi, Pakistan, where he teaches international business and strategy courses at both undergraduate and graduate levels. His research interests focus on economic, social, and environmental upgrading in global value chains (GVCs), corporate social responsibility, and the role of intermediary actors in the governance of GVCs.
We spoke with Muhammad about what drove him to apply for a fellowship, and what he will focus on during his time at Harvard.
Muhammad Ayaz, the Mittal Institute’s Syed Babar Ali Fellow.
Mittal Institute: Muhammad, how did you learn about the Mittal Institute fellowship program and what led you to initially apply?
Muhammad Ayaz: I first learned about the Mittal Institute’s Syed Babar Ali Fellowship through academic circles and my professional network. As a scholar engaged in research on sustainability and governance in global value chains, I was particularly drawn to the Mittal Institute’s commitment to fostering cross-disciplinary research on South Asia’s most pressing challenges. The center’s association with Harvard faculty across different schools and its strong focus on intellectual exchange and academic collaboration made it an ideal platform for advancing my research.
I was especially motivated to apply because of the opportunity to engage with leading scholars at Harvard, gain access to world-class resources, and contribute to meaningful discussions on economic and social transformations in South Asia. I saw this fellowship as a unique opportunity to refine my work, expand my academic network, and make a more significant impact in my field.
“As a scholar engaged in research on sustainability and governance in global value chains, I was particularly drawn to the Mittal Institute’s commitment to fostering cross-disciplinary research on South Asia’s most pressing challenges.”
Mittal Institute: Can you define a global value chain for our readers, and explain the key differences between a global value chain and a traditional supply chain?
Muhammad Ayaz: The Global Value Chain (GVC) concept is interdisciplinary, drawing from economic geography, sociology, development economics, and international business to examine economic and social development in an interconnected world. Understanding GVCs is crucial for firms expanding internationally, policymakers shaping trade regulations, and researchers analyzing global economic trends.
Unlike traditional supply chains, which emphasize linear material flows within a single region, GVCs operate as complex, networked systems integrating vertical and horizontal relationships that include economic, social, and political dimensions. Vertical ties link firms across production stages, while horizontal relationships foster collaboration and competition among firms at similar levels. Beyond economic linkages, social factors- such as labor practices and skill development- shape workforce participation, while political influences-including trade policies and regulations- affect governance and value distribution. These interconnected relationships highlight the complexity of global production and its broad impact on firms, workers, and economies.
The GVC perspective emphasizes value creation and distribution, shedding light on the unequal distribution of gains and its implications for different stakeholders. Governance and upgrading play a central role in GVCs shaping how firms coordinate activities, allocate resources, and move up the value chain into higher-value activities, ultimately enhancing competitiveness and economic development.
Mittal Institute: Talk to us about the project you’re working on – it centers around the role of intermediary actors in promoting environmental sustainability within GVCs. What does this mean, and how can companies make their global value chains more environmentally sustainable?
Muhammad Ayaz: Governance structures in Global Value Chains (GVCs) shape decision-making, resource allocation, and value distribution across firms. These structures encompass private, public, and social governance mechanisms. The intermediary actors playing a key role in regulation the GVCs especially in public and social forms of governance. These actors are not directly involved in any value adding activities (production, distribution consumption etc) in GVCs rather they govern the GVCs. Among them, multi-stakeholder initiatives are one such actor that help drive economic, social, and environmental upgrading in GVCs.
However, the fragmentation of these intermediary organizations creates governance and accountability challenges, leading to resource duplication, conflicting standards, and diluted impact. This research explores the complex governance dynamics in GVCs, identifying key drivers, challenges, and strategies for achieving environmental sustainability. Moving beyond individual initiatives, it examines how diverse governance efforts interact to support- or constrain- environmental upgrading in GVCs.
Mittal Institute: You are focusing on the textile and clothing industries as case studies, which are some of the most polluting sectors globally. Can you talk about why you centered on these industries, and what challenges and opportunities you see within these sectors?
Muhammad Ayaz: I am focusing on the textile and clothing industry for three key reasons. First, it is one of the largest global industries, with exports reaching $915 billion in 2022, and is also among the most polluting sectors, second only to oil and gas. Its significant environmental footprint—including greenhouse gas emissions, excessive water consumption, chemical use, and waste generation—has made it a primary target for multi-stakeholder initiatives aiming to drive environmental sustainability.
“[The textile and clothing industry] is one of the largest global industries, with exports reaching $915 billion in 2022, and is also among the most polluting sectors, second only to oil and gas. Its significant environmental footprint—including greenhouse gas emissions, excessive water consumption, chemical use, and waste generation—has made it a primary target for multi-stakeholder initiatives aiming to drive environmental sustainability.”
Second, the industry holds particular relevance for South Asia, where Bangladesh, India, and Pakistan rank among the world’s top ten clothing exporters, while India and Pakistan are also leading textile exporters. These countries not only play a crucial role in global supply chains but are also highly vulnerable to climate change, making sustainability efforts in this sector even more pressing.
Third, my extensive experience working with the textile and clothing industry provides me with valuable insights and access to key stakeholders, enabling an in-depth exploration of governance dynamics and sustainability challenges within this sector.
A textile factory worker in India pushes fabrics to the dyeing machine | Canva.
Mittal Institute: How have global disruptions—such as COVID-19, climate change, or geopolitical conflicts—affected global value chains? What strategies can companies use to make their value chains more resilient to future shocks?
Muhammad Ayaz: Global disruptions- such as COVID-19, climate change, and geopolitical conflicts- have significantly impacted Global Value Chains (GVCs), exposing vulnerabilities and prompting firms to rethink their global operations. Several key trends are emerging as a result.
First, some industries are experiencing a reconfiguration of value chains, with a growing shift toward regionalization. In the textile and apparel industry, for example, China has long been a dominant player. However, the U.S.-China tariff war has led brands to reconsider their sourcing strategies. To reduce reliance on China, companies are exploring alternative sourcing locations and diversification strategies, leading to a more regionally distributed value chain.
Second, climate change has accelerated the introduction of due diligence legislation across multiple countries, significantly impacting GVCs. Regulations such as the European Union Corporate Sustainability Due Diligence Directive (EUCSDD) and the proposed New York Fashion Act are increasing pressure on textile and apparel firms to adopt sustainable practices, decarbonize supply chains, and comply with stricter environmental standards. These laws impose legally binding obligations on companies to ensure human rights and environmental compliance across their supply chains.
As a result, exporting firms in developing countries- especially in South Asia- must adapt to these evolving regulatory requirements to maintain access to key markets. However, concerns are emerging regarding the risk of exclusion, as multinational corporations (MNCs) and brands may reduce sourcing from countries with weaker compliance capabilities to avoid liability risks. This could lead to the marginalization of certain firms, countries, or regions within GVCs, exacerbating economic inequality.
Additionally, there is concern over the disproportionate compliance burden on suppliers in developing countries, which could reduce their overall gains from participating in GVCs. Without adequate support mechanisms and shared responsibility, these regulatory shifts could unintentionally reinforce existing global trade disparities rather than creating inclusive and sustainable value chains.
Mittal Institute: What are you most looking forward to during your time in Cambridge?
Muhammad Ayaz: I am most looking forward to immersing myself in Cambridge’s intellectually vibrant environment, engaging with world-class scholars, and exchanging ideas on global value chains, sustainability, and international business. The opportunity to collaborate with experts at Harvard and the Mittal Institute will allow me to refine my research, gain new perspectives, and explore innovative solutions to pressing global challenges. Additionally, I am excited to experience Cambridge’s rich academic culture, attend insightful seminars, and build lasting connections with fellow researchers. Beyond academia, I look forward to exploring the historical charm of Cambridge, engaging with its diverse community, and making the most of this enriching journey.
☆ The views represented herein are those of the interview subject and do not necessarily reflect the views of the Mittal Institute, its staff, or its Steering Committee.