Value creation logic in buyer-seller relationships in garment industry in Thailand

Abstract

The purpose of the research is to explore and identify value creation logic and strategies developed by firms and their supply chain partners in garment industry in Thailand. The methodology employed involves in-depth semi-structure interviews with 23 owners of Thai garment firms and eight executives from relevant government sector and supportive organisations. The article synthesises the empirical data and presents a summary of the finding. Dimensions of the value creation logic consist of a value creation initiative, an interaction for learning, an objective and a focus of coordination on the exchange of relationships. In this respect, two types of value creation strategies are explored in the research: 1) core value strategy; 2) value-added strategies. The research provides a better understanding of the strategic implications of the variable dimensions of the value creation logic in buyer-seller relationships.