Domestic capabilities and global production networks in the clothing industry: a comparison of German and UK firms' strategies
AbstractIn 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.
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Bibliographic InfoPaper provided by ESRC Centre for Business Research in its series ESRC Centre for Business Research - Working Papers with number wp318.
Date of creation: Dec 2005
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clothing industry; global production networks; capabilities;
Find related papers by 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
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-19 (All new papers)
- NEP-CSE-2006-02-19 (Economics of Strategic Management)
- NEP-MKT-2006-02-19 (Marketing)
- NEP-TID-2006-02-19 (Technology & Industrial Dynamics)
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- 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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