2003 · 429 citations · 4 references
BusinessInternational BusinessStrategic ManagementGlobal SourcingGlobal Supply Chain ManagementInternational TradeGlobal Supply Chain StrategyGlobal Supply ChainsGlobal Value Chain StrategyGlobal Value ChainsStrategic SourcingValue Chain ManagementBusiness SegmentsBuyer-driven Value ChainsGlobal Value Chain InnovationLead Firm StrategySourcing CapabilitiesSupplier UpgradingSupply Chain CompetitionValue Chain Strategy
The apparel industry is a buyer‑driven global value chain dominated by retailers, marketers, and branded manufacturers, whose de‑verticalization and shift to full‑package production has intensified competition, blurred firm boundaries, and created new opportunities for innovation and learning. The study applies the global value chain framework to explain how these transformations alter production, trade, and corporate strategies and to assess their implications for innovation and learning in the apparel sector. By mapping the industry onto the GVC framework, the authors identify three North American competition models—East Asian, Mexican, and Caribbean Basin—that illustrate distinct strategic configurations. The three models reveal differing perspectives and challenges for industrial innovation and learning.
The paper uses the global value chain framework to explain the transformations in production, trade and corporate strategies that altered the apparel industry over the past decades and changed the conditions for innovation and learning in the industry. The apparel industry is identified as a buyer-driven value chain that contains three types of lead firms: retailers, marketers and branded manufacturers. With the globalization of apparel production, competition between the leading firms in the industry has intensified as each type of lead firm has developed extensive global sourcing capabilities. While de-verticalizing out of production, these firms are fortifying their activities in the high value-added design and marketing segments of the apparel chain, leading to a blurring of the boundaries between them and a realignment of interests within the chain. Innovation in the global apparel value chain is primarily associated with the shift from assembly to full-package production. Full-package production changes fundamentally the relationship between buyer and supplier giving more autonomy to the supplying firm and creating more possibilities for innovation and learning. The paper distinguishes between three new models of competition in the North American market namely the East Asian, Mexican and Caribbean Basin model. Each model presents different perspectives and challenges for industrial innovation and learning.
4