Producers of value-added agri-food products from emerging economies supply many of the products demanded in mature markets, but they do not always capture the proportional value within global value chains. This is especially relevant because the value of these products is shaped not only by production, but also by consumer perception. The purpose of this study is to examine how internationalization into mature markets may contribute to functional upgrading for these producers.

The study draws on an integrated framework combining the resource-based view, internationalization theories, and functional upgrading within global value chains. Based on this, a qualitative embedded single-case study design was conducted, focusing on Mexico as the emerging-economy context. Producers of value-added agri-food products were treated as embedded subunits. Data were collected through 13 semi-structured interviews with producers, experts, and supporting actors, complemented by documentation, archival records, and digital direct observation.

The findings show that internationalization can contribute to functional upgrading, but this process is uneven. Producers require internal resources and capabilities such as knowledge, quality, and managerial capabilities. They also use strategies such as exporting, networking, and the use of intermediaries. Functional upgrading occurs when market access leads to greater control and higher value capture through activities such as processing, packaging, branding, product transformation, or developed buyer relationships. However, these outcomes are shaped by contextual conditions such as institutions, support actors, buyer requirements, and agri-food-specific factors, among others.