IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i2p508-d306777.html
   My bibliography  Save this article

Global Sourcing in Fast Fashion Retailers: Sourcing Locations and Sustainability Considerations

Author

Listed:
  • Elisa Arrigo

    (Department of Economics, Management and Statistics, University of Milan-Bicocca, 20126 Milan, Italy)

Abstract

For decades, apparel companies have profited from moving their manufacturing to low-cost countries and several academic studies have focused on understanding whether low-cost locations could support optimal supply chain configurations. However, the exploitation of resources in foreign sourcing countries often resulted in many environmental and social issues and apparel companies became progressively more concerned about the negative exposure that they could face with a limited supply chain transparency. Therefore, this paper aims at investigating global sourcing strategies of fast fashion retailers in order to understand whether the decision criteria influencing sourcing locations have changed over time to also embrace sustainability considerations. Drawing on a literature review on sustainability in fashion supply chains, offshore outsourcing, and fast fashion global sourcing, a new theoretical framework concerning fast fashion retailers’ sourcing locations is proposed together with a content analysis of their reports. The findings show that fast fashion retailers identify sustainability as a key element to consider in selecting sourcing locations since sustainability issues at suppliers’ factories may represent relevant hidden costs. Moreover, actions aimed at checking and improving sustainable practices in global sourcing policies are proven to support the development of a strategic sourcing reputation for their fast fashion brands.

Suggested Citation

  • Elisa Arrigo, 2020. "Global Sourcing in Fast Fashion Retailers: Sourcing Locations and Sustainability Considerations," Sustainability, MDPI, vol. 12(2), pages 1-22, January.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:2:p:508-:d:306777
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/2/508/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/2/508/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Manning, Stephan, 2014. "Mitigate, tolerate or relocate? Offshoring challenges, strategic imperatives and resource constraints," Journal of World Business, Elsevier, vol. 49(4), pages 522-535.
    2. Javalgi, Rajshekhar (Raj) G. & Dixit, Ashutosh & Scherer, Robert F., 2009. "Outsourcing to emerging markets: Theoretical perspectives and policy implications," Journal of International Management, Elsevier, vol. 15(2), pages 156-168, June.
    3. Gregory Theyel & Kay Hofmann & Mike Gregory, 2018. "Understanding Manufacturing Location Decision Making: Rationales for Retaining, Offshoring, Reshoring, and Hybrid Approaches," Economic Development Quarterly, , vol. 32(4), pages 300-312, November.
    4. Vidal, Carlos J. & Goetschalckx, Marc, 1997. "Strategic production-distribution models: A critical review with emphasis on global supply chain models," European Journal of Operational Research, Elsevier, vol. 98(1), pages 1-18, April.
    5. Elise Auke & Ana Simaens, 2019. "Corporate responsibility in the fast fashion industry: how media pressure affected corporate disclosure following the collapse of Rana Plaza," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 23(4), pages 356-382.
    6. Gérard P. Cachon & Robert Swinney, 2011. "The Value of Fast Fashion: Quick Response, Enhanced Design, and Strategic Consumer Behavior," Management Science, INFORMS, vol. 57(4), pages 778-795, April.
    7. Neil M. Coe & Peter Dicken & Martin Hess, 2008. "Global production networks: realizing the potential," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 271-295, May.
    8. Ho, William & Xu, Xiaowei & Dey, Prasanta K., 2010. "Multi-criteria decision making approaches for supplier evaluation and selection: A literature review," European Journal of Operational Research, Elsevier, vol. 202(1), pages 16-24, April.
    9. Peter D. Ørberg Jensen & Torben Pedersen, 2011. "The Economic Geography of Offshoring: The Fit between Activities and Local Context," Journal of Management Studies, Wiley Blackwell, vol. 48(2), pages 352-372, March.
    10. Liu, Yang & Zhu, Qinghua & Seuring, Stefan, 2017. "Linking capabilities to green operations strategies: The moderating role of corporate environmental proactivity," International Journal of Production Economics, Elsevier, vol. 187(C), pages 182-195.
    11. Caniato, Federico & Caridi, Maria & Crippa, Luca & Moretto, Antonella, 2012. "Environmental sustainability in fashion supply chains: An exploratory case based research," International Journal of Production Economics, Elsevier, vol. 135(2), pages 659-670.
    12. Marzieh Mehrjoo & Zbigniew J. Pasek, 2016. "Risk assessment for the supply chain of fast fashion apparel industry: a system dynamics framework," International Journal of Production Research, Taylor & Francis Journals, vol. 54(1), pages 28-48, January.
    13. Anika Kozlowski & Cory Searcy & Michal Bardecki, 2015. "Corporate sustainability reporting in the apparel industry," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 64(3), pages 377-397, March.
    14. Peng Jia & Kannan Govindan & Tsan-Ming Choi & Sivakumar Rajendran, 2015. "Supplier Selection Problems in Fashion Business Operations with Sustainability Considerations," Sustainability, MDPI, vol. 7(2), pages 1-17, February.
    15. Masaaki Kotabe & Michael J. Mol & Sonia Ketkar, 2008. "An evolutionary stage model of outsourcing and competence destruction: A Triad comparison of the consumer electronics industry," Management International Review, Springer, vol. 48(1), pages 65-94, February.
    16. Bin Shen & Qingying Li & Ciwei Dong & Patsy Perry, 2017. "Sustainability Issues in Textile and Apparel Supply Chains," Sustainability, MDPI, vol. 9(9), pages 1-6, September.
    17. Nebahat Tokatli, 2008. "Global sourcing: insights from the global clothing industry—the case of Zara, a fast fashion retailer," Journal of Economic Geography, Oxford University Press, vol. 8(1), pages 21-38, January.
    18. Muhammad Amad Saeed & Wolfgang Kersten, 2019. "Drivers of Sustainable Supply Chain Management: Identification and Classification," Sustainability, MDPI, vol. 11(4), pages 1-23, February.
    19. Tate, Wendy L. & Ellram, Lisa M. & Bals, Lydia & Hartmann, Evi, 2009. "Offshore outsourcing of services: An evolutionary perspective," International Journal of Production Economics, Elsevier, vol. 120(2), pages 512-524, August.
    20. Liena Kano, 2018. "Global value chain governance: A relational perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(6), pages 684-705, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andreza de Aguiar Hugo & Jeniffer de Nadae & Renato da Silva Lima, 2021. "Can Fashion Be Circular? A Literature Review on Circular Economy Barriers, Drivers, and Practices in the Fashion Industry’s Productive Chain," Sustainability, MDPI, vol. 13(21), pages 1-17, November.
    2. Saskia Manshoven & Wim Van Opstal, 2022. "The Carrot or the Stick? Stakeholder Support for Mandatory Regulations towards a Circular Fashion System," Sustainability, MDPI, vol. 14(22), pages 1-31, November.
    3. Vijay Kumar, 2022. "Product Recalls in European Textile and Clothing Sector—A Macro Analysis of Risks and Geographical Patterns," Stats, MDPI, vol. 5(4), pages 1-18, October.
    4. Sumera Ahmad & Suraya Miskon & Rana Alabdan & Iskander Tlili, 2020. "Towards Sustainable Textile and Apparel Industry: Exploring the Role of Business Intelligence Systems in the Era of Industry 4.0," Sustainability, MDPI, vol. 12(7), pages 1-23, March.
    5. Sara Cavagnero & Simona Giordano, 2022. "Sui Generis Geographical Indications Fostering Localized Sustainable Fashion: A Cross-Industry Assessment," Sustainability, MDPI, vol. 14(9), pages 1-21, April.
    6. Pedrini, Giulio & Cappiello, Giuseppe, 2022. "The impact of training on labour productivity in the European utilities sector: An empirical analysis," Utilities Policy, Elsevier, vol. 74(C).
    7. Sheng Lu, 2022. "Explore U.S. Retailers’ Sourcing Strategies for Clothing Made from Recycled Textile Materials," Sustainability, MDPI, vol. 15(1), pages 1-13, December.
    8. Eve Fraser & Hamish van der Ven, 2022. "Increasing Transparency in Global Supply Chains: The Case of the Fast Fashion Industry," Sustainability, MDPI, vol. 14(18), pages 1-24, September.
    9. Silvia Dimitrova, 2020. "Ethical Fashion," Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, Union of Scientists - Varna, Economic Sciences Section, vol. 9(3), pages 27-39, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Niccolò Pisani & Joan Enric Ricart, 2016. "Offshoring of Services: A Review of the Literature and Organizing Framework," Management International Review, Springer, vol. 56(3), pages 385-424, June.
    2. Mukherjee, Debmalya & Kumar, Satish & Pandey, Nitesh & Lahiri, Somnath, 2023. "Is offshoring dead? A multidisciplinary review and future directions," Journal of International Management, Elsevier, vol. 29(3).
    3. Alina Grecu & Wolfgang Sofka & Marcus M. Larsen & Torben Pedersen, 2022. "Unintended signals: Why companies with a history of offshoring have to pay wage penalties for new hires," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(3), pages 534-549, April.
    4. Schmeisser, Bjoern, 2013. "A Systematic Review of Literature on Offshoring of Value Chain Activities," Journal of International Management, Elsevier, vol. 19(4), pages 390-406.
    5. Zoe Mellick & Alice Payne & Laurie Buys, 2021. "From Fibre to Fashion: Understanding the Value of Sustainability in Global Cotton Textile and Apparel Value Chains," Sustainability, MDPI, vol. 13(22), pages 1-21, November.
    6. Wen, Xin & Choi, Tsan-Ming & Chung, Sai-Ho, 2019. "Fashion retail supply chain management: A review of operational models," International Journal of Production Economics, Elsevier, vol. 207(C), pages 34-55.
    7. Juliane Peters & Ana Simaens, 2020. "Integrating Sustainability into Corporate Strategy: A Case Study of the Textile and Clothing Industry," Sustainability, MDPI, vol. 12(15), pages 1-35, July.
    8. Plank, Leonhard & Staritz, Cornelia, 2014. "Global competition, institutional context, and regional production networks: Up- and downgrading experiences in Romania's apparel industry," Working Papers 50, Austrian Foundation for Development Research (ÖFSE).
    9. McIvor, Ronan & Bals, Lydia, 2021. "A multi-theory framework for understanding the reshoring decision," International Business Review, Elsevier, vol. 30(6).
    10. Caniato, Federico & Elia, Stefano & Luzzini, Davide & Piscitello, Lucia & Ronchi, Stefano, 2015. "Location drivers, governance model and performance in service offshoring," International Journal of Production Economics, Elsevier, vol. 163(C), pages 189-199.
    11. Vu Minh Ngo & Huy Truong Quang & Thinh Gia Hoang & An Duong Thi Binh, 2024. "Sustainability‐related supply chain risks and supply chain performances: The moderating effects of dynamic supply chain management practices," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 839-857, February.
    12. Mashiho Mihalache & Oli R. Mihalache, 2020. "What is Offshoring Management Capability and How Do Organizations Develop It? A Study of Dutch IT Service Providers," Management International Review, Springer, vol. 60(1), pages 37-67, February.
    13. Lorena D’Agostino, 2015. "The neglected effects of R&D captive offshoring in emerging countries on the creation of knowledge at home," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(1), pages 61-91, March.
    14. Karaosman, Hakan & Perry, Patsy & Brun, Alessandro & Morales-Alonso, Gustavo, 2020. "Behind the runway: Extending sustainability in luxury fashion supply chains," Journal of Business Research, Elsevier, vol. 117(C), pages 652-663.
    15. Rajesh Sharma, 2020. "Building Consumer-based Brand Equity for Fast Fashion Apparel Brands in the Indian Consumer Market," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 45(3), pages 337-365, August.
    16. Tsan-Ming Choi & Yongjian Li, 2015. "Sustainability in Fashion Business Operations," Sustainability, MDPI, vol. 7(11), pages 1-7, November.
    17. Moe, Signe Louise, 2021. "Governing production, shaping legislation? Apparel and automotive sector governance and firm representation in European Commission Expert Groups," ÖFSE-Forum, Austrian Foundation for Development Research (ÖFSE), volume 77, number 77, Juni.
    18. Scott, James A. & Ho, William & Dey, Prasanta K., 2013. "Strategic sourcing in the UK bioenergy industry," International Journal of Production Economics, Elsevier, vol. 146(2), pages 478-490.
    19. Kvedarienė Audronė, 2019. "Strategic technology management within global value systems," Open Economics, De Gruyter, vol. 2(1), pages 43-52, January.
    20. Dohse, Dirk & Hassink, Robert & Klaerding, Claudia, 2012. "Emerging multinationals, international knowledge flows and economic geography: A research agenda," Kiel Working Papers 1776, Kiel Institute for the World Economy (IfW Kiel).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:2:p:508-:d:306777. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.