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Domestic capabilities and global production networks in the clothing industry: a comparison of German and UK firms' strategies

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Listed:
  • Christel Lane
  • Jocelyn Probert

Abstract

In this paper we examine the sourcing strategies of clothing firms in the developed economies of the UK and Germany in the context of their national institutional framework. We argue that, as a result of their embeddedness in divergent national structures, these firms pursue different sourcing strategies and make different locational choices. We place particular emphasis on the different mix of armsÕ length and relational contracting that firms develop, and on the divergent degree of control over the manufacturing process and the product that they retain. We suggest that the construction of global production networks and control over supplier firms is mediated by co-ordinating firmsÕ product strategy and the degree of dependence on national retailers this engenders. In the UK and Germany, firms and their networks differ from the US case which is normally taken as representative of the industry.

Suggested Citation

  • Christel Lane & Jocelyn Probert, 2005. "Domestic capabilities and global production networks in the clothing industry: a comparison of German and UK firms' strategies," Working Papers wp318, Centre for Business Research, University of Cambridge.
    • Handle: RePEc:cbr:cbrwps:wp318
    Note: PRO-1
    as

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    File URL: https://www.jbs.cam.ac.uk/cbrwp318/
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    References listed on IDEAS

    as
    1. Sally Baden, 2002. "Trade Policy, Retail Markets and Value Chain Restructuring in the EU Clothing Sector," PRUS Working Papers 09, Poverty Research Unit at Sussex, University of Sussex.
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    Cited by:

    1. Rafael Pardo & Ruth Rama, 2013. "Is the Pro-Network Bias Justified?," SAGE Open, , vol. 3(3), pages 21582440134, July.
    2. Miozzo, Marcela & Grimshaw, Damian, 2008. "Service multinationals and forward linkages with client firms: The case of IT outsourcing in Argentina and Brazil," International Business Review, Elsevier, vol. 17(1), pages 8-27, February.

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    More about this item

    Keywords

    clothing industry; global production networks; capabilities;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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