IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v2y2012i6p687-712id925.html
   My bibliography  Save this article

Improvement of firm Performance by Achieving Competitive Advantages through Vertical Integration in the Apparel Industry of Bangladesh

Author

Listed:
  • Shah Moahmmad Tanvir Monsur
  • Takahashi Yoshi

Abstract

In the manufacturing step of the global apparel value chain (GAVC) the firms face fierce competition due to availability of low cost labor and hence the opportunity to make higher profit is a tough job. According to Gereffi (1999) a good strategy to overcome this problem is industrial up-gradation through value chain which resembles vertical integration strategy in the study of strategic management. The major theories on strategic management like Porter’s generic competitive strategy, resource based view and capability based view advocates that industrial up-gradation or value chain integration gains competitive advantages for the firms. But no study done on GAVC has neither discussed what should be the relevant competitive advantages for apparel manufacturing firms on the basis of above mentioned theories nor empirically showed how industrial up-gradation can gain competitive advantages and improve firm performances. Therefore, this study has picked up the variables for competitive advantages examining the above mentioned important theories and linked industrial up-gradation and competitive advantages and subsequently with firm performances. This study has done a survey on 180 apparel firms in Bangladesh and by using structural equation modeling it found that industrial up-gradation through value chain has positive influence on competitive advantages and competitive advantages has significant positive influences on firm performances. By analyzing the result, this study recommends the apparel manufacturers in Bangladesh that they should allocate the physical resources and build up human resources in such a way that in future they can vertically integrate. The firms must not stick to the strategy of reduction of labor cost rather they should also try to pursue for other competitive advantages like time, quality, reliability and flexibility. In this way the firm performances would be improved.

Suggested Citation

  • Shah Moahmmad Tanvir Monsur & Takahashi Yoshi, 2012. "Improvement of firm Performance by Achieving Competitive Advantages through Vertical Integration in the Apparel Industry of Bangladesh," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 2(6), pages 687-712.
    • Handle: RePEc:asi:aeafrj:v:2:y:2012:i:6:p:687-712:id:925
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/925/1406
    Download Restriction: no
    ---><---

    Citations

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


    Cited by:

    1. Paul G. Kimiti & Stephen M.A. Muathe & Elishiba M. Murigi, 2020. "Nexus between Cost Leadership Strategy and Performance: Fact or Fallacy in Milk Processing Firms in Kenya," International Business Research, Canadian Center of Science and Education, vol. 13(10), pages 1-1, October.

    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:asi:aeafrj:v:2:y:2012:i:6:p:687-712:id:925. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    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.