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Institutional Factors and National Competitive Advantage: A Comparative Analysis in the Textile Industry

In: Proceedings of the Sustainability in Emerging Economies - Integrating Business Excellence in Management Education (SEE-IBEME-2024)

Author

Listed:
  • Pallavi Singh

    (Management Development Institute Gurgaon, Ph.D. Scholar)

  • Ruchi Agarwal

    (Management Development Institute Gurgaon, Assistant Professor, Department of Strategic Management)

Abstract

This study applies institutional theory to explore the sources of national competitive advantage in the textile industries of India and Bangladesh. The main objective is to understand how institutional characteristics, rather than solely firm-level capabilities or market-driven policies, shape competitiveness in emerging economies. This study examines how varying institutional agendas influence the textile industry in Bangladesh and India through the normative, mimetic, and coercive forces. Though India’s commitment to social welfare and compliance with ESG might be flagged as commendable, it focuses on undercutting India’s global standing in textile manufacturing cost competitiveness. To that effect, we are plagued by the pertinent question of whether, in their fight for competitive advantage, their adherence to ESG values inhibits developing countries. This study highlights the extent of relevance that institutional issues hold in the competitive equation, particularly in terms of the balance between moral commitment and financial interests. Also, this study is amongst the first study to compare national competitive advantage in institutional context particularly in developing markets.

Suggested Citation

  • Pallavi Singh & Ruchi Agarwal, 2025. "Institutional Factors and National Competitive Advantage: A Comparative Analysis in the Textile Industry," Advances in Economics, Business and Management Research, in: Rohit Sindhwani & Jyotsna Bhatnagar & Ritu Srivastava & Neera Jain & Ruchi Agarwal (ed.), Proceedings of the Sustainability in Emerging Economies - Integrating Business Excellence in Management Education (SEE-IBEME-2024), pages 4-15, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-696-3_2
    DOI: 10.2991/978-94-6463-696-3_2
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