Relationships of firms in the textile industry in Pakistan: an exploration of Talukaat.

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Studies on Asian business clans have highlighted the importance of networks in business operations. However, there has been less attention on social ties as an instrument to influence and maintain business ties. Despite being present and contributing substantially to the Pakistan economy, little is known about Talukaat, a form of business clan. Indeed, its role in business performance notwithstanding, there is a paucity of knowledge regarding its nature and formation. In this regard, this study seeks to contribute to knowledge about Asian business clans particularly by exploring Talukaat in the context of the textile industry in Pakistan. To examine Talukaat, this thesis sought to answer three exploratory research questions which were drawn from the literature (i) to develop an understanding of what Talukaats are (ii) how they operate and (iii) how they compare to other Asian business clans. The thesis utilised Social Network Theory as a theoretical lens to examine Talukaat. To answer the research questions and offer detailed perspectives on Talukaat, an inductive approach was adopted. This approach, together with the epistemological stance of interpretivism involved the use of semi-structured interviews, observation guides, and a snowball sampling technique. This research methodology was used to explore the in-depth knowledge of business managers operating in Pakistan’s textiles industry. The findings suggest that business ties are underpinned by social ties, and the two are inseparable. It also came to light that, networks formed in businesses operate through shared social values, preventing opportunism and maintaining solidarity in them. From the findings, a definition of Talukaat was drawn to highlight the main features of the network: a closed but informal network that relies on direct social ties based on a number of constructs including kinship, community, friendship, trust, collectivism, reciprocity and facilitative professionalism which is influenced by shared social values. Moreover, the findings provide a better understanding of the role Talukaat plays in the textile industry in Pakistan. A comparison of Talukaat network to three other Asian clans: Japanese Keiretsu, Chinese Guanxi and Arabic Wasta revealed that, all three are closed networks implying there is limited access of ‘outsiders’ to the network. Compared to Chinese Guanxi, Talukaat showed extensive influence over business decisions whereas, Japanese Keiretsu and Arabic Wasta do not. The thesis makes important contributions to knowledge by exploring Talukaat, and in so doing adding an additional facet to the examination of business clan networks, and more importantly from an Asian perspective. The thesis has also revealed that managerial decision making in the Pakistani textile industry is influenced by Talukaat and this has wider implications on business networks and operations.