Abstract
Abstract Outsourcing allows quick reactions to market fluctuations and allows firms to focus on their core business. This strategy is currently used in the Brazilian apparel industry. The paper analyzes the interaction between big customers (some multinationals firms) and Brazilian suppliers in the sports apparel industry to verify how these relationships can contribute to the capability development of suppliers. Multiple case studies were conducted. The findings indicated that collaborative, and long-term relationships are beneficial to businesses and customers significantly influence the development of the sewing factory suppliers with whom they work.
Highlights
The industrial sector has undergone considerable change in recent decades, forcing companies to compete in other ways, seeking alternatives that would ensure their competitiveness
In order to reduce cost and enhance speed and flexibility, firms are decentralizing some activities, placing the responsibility for implementing secondary functions on third parties as suppliers, while the companies specialize in capabilities that effectively generate value for their business (Krause & Scannell, 2002; Dixon et al, 2014; Barney, 1991). In this way, outsourcing is considered to be a compatible strategy since it allows quick reaction to the constant variations in demand (Hoyt & Huq, 2000; Wu & Blackhurst, 2009; Zhang et al, 2013)
This paper aims at analyzing the interaction between big customers and Brazilian suppliers in the sports apparel industry in order to verify how these relationships contribute to the capability development of the suppliers
Summary
The industrial sector has undergone considerable change in recent decades, forcing companies to compete in other ways, seeking alternatives that would ensure their competitiveness. In order to reduce cost and enhance speed and flexibility, firms are decentralizing some activities, placing the responsibility for implementing secondary functions on third parties as suppliers, while the companies specialize in capabilities that effectively generate value for their business (Krause & Scannell, 2002; Dixon et al, 2014; Barney, 1991). In this way, outsourcing is considered to be a compatible strategy since it allows quick reaction to the constant variations in demand (Hoyt & Huq, 2000; Wu & Blackhurst, 2009; Zhang et al, 2013).
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