Vertical and horizontal diffusion of labour standards in global supply chains: working hours practices of tier-1 and tier-2 textiles and garment suppliers

Abstract

This paper explores the diffusion of working hours standards beyond tier-1 suppliers in the garment supply chain. It compares working hours designs and rationales of tier-1 and tier-2 garment suppliers in Jordan and garment and textiles suppliers in Egypt. Building on the idea of crossvergence, the paper extends previous insights on explanatory factors that are rooted in the supply chain and captures global, local, and firm-level rationales. The analysis followed a flexible pattern matching logic and draws on a qualitative multiple-case study encompassing 30 owner-manager interviews, 13 expert interviews, and multiple documents and field observations. Convergence to global standards was found to be higher in tier-1 compared with tier-2 garment firms and differed between the garment and the textiles industry. The study showed that labour standard demands of global buyers dissolve along the supply chain, while the price and lead time squeeze persists or increases. How suppliers navigate the antagonism of labour standard and procurement demands depends upon local level factors and firm resources. A framework of human, intellectual, physical, and financial resources was developed to capture structural differences between higher- and lower-tier suppliers. The findings underscore the need for new procurement strategies of global buyers and tier-1 suppliers, and further investments in multi-stakeholder initiatives that monitor sub-suppliers, support resource development, and address systemic barriers to labour standard compliance.