Apparel Firms Research Articles

The Impact of Space Delocalization and Time Delocalization on the CSR Strategy in a Transition Period ——A Case Study of Chinese Small and Medium-sized Export-oriented Apparel Firms

Since the 1990s, many Chinese small and medium-sized export-oriented firms have begun to accept higher corporate social responsibility (CSR) standards because of factory inspections. In recent years, firms have been facing greater market competition in a period of transition. Different firms have different attitudes toward CSR behavior in same external macroenvironment, and some firms have formed a CSR strategy. To further explore the issue, this paper studied the impact of space delocalization and time delocalization on the CSR strategy of Chinese small and medium-sized export-oriented firms based on social structure theory. Using the case study approach, the results showed the following: (1) space delocalization can stimulate the CSR behavior of firms, although some behaviors are the result of compromise, and CSR strategy will not be initiated because of passive CSR behavior; (2) the stimulation of space delocalization can stimulate endogenous changes, but the cultural background of time delocalization has a far-reaching impact on the formation of CSR strategy.

Rules of Origin Liberalization with Multi-Product Firms: Theory and Evidence from Bangladeshi Apparel Exporters

This paper investigates how rules of origin influence firm-level export behavior. Rules of origin specify the minimum amount of local content required for a product to qualify for reduced tariffs under a preferential trade agreement. Rules of origin undermine exporting firms' access to preferential trade agreements in countries where there exist limited opportunities to source intermediate inputs locally. I show that liberalizing rules of origin in a multi-product firm setting not only affects input sourcing decisions and preference utilization rates but also product output mix. I study the 2011 revision to the rules of origin associated with the EU’s Generalized System of Preferences. This revision allowed apparel producers in least-developed countries to use more internationally-sourced content in apparel exports. Using transaction-level data on Bangladeshi apparel firms, and a triple-difference empirical framework, I find the 2011 rules of origin revision resulted in an increase in export revenue, product diversification, export-participation, and product quality. At the industry level, the most productive incumbent firms gained market share after the rules of origin liberalization.

The Role of Social Support on Job Burnout in the Apparel Firm

Managing the causes of job burnout has become a momentous phenomenon in career management literature. Majority of the apparel firms in Sri Lanka are experiencing job burnout as a massive dispute where it represents many work-related and non-work related issues that employees endure. In this context, the present study was conducted with the aim of investigating the impact of social support on job burnout among the female worker level employees of a leading apparel firm in Sri Lanka. The study is mainly considering the primary data. Present study is using survey method to analyze the objectives. The data were collected through a self-administrated questionnaire from 142 respondents of the selected apparel firm. The correlation analysis of the study revealed that the social support has a strong negative relationship with job burnout while regression analysis identified that social support is significantly contributing to determine job burnout (51.1%). Moreover, multiple regression analysis indicated that family support has the highest impact on job burnout among the worker level employees. The findings of the study have various managerial implications for other apparel manufacturing firms and other industries in Sri Lankan social context.

Challenges of achieving social upgrading in Bangladesh’s apparel industry

PurposeDespite substantial economic upgrading, Bangladesh’s apparel industry remains confronted by claims of precarious working conditions. This paper aims to understand the challenges of achieving social upgrading and whether benefits of economic upgrading can transfer to workers and their dependents through social upgrading.Design/methodology/approachSemi-structured interviews were undertaken with 90 participants from six apparel firms in Bangladesh. The interviews were conducted following the Rana Plaza disaster.FindingsThe results suggest that social upgrading has not occurred to the same extent as economic upgrading. Social upgrading has been compromised in part, by the tiered factory system operating and a lack of governance within the lower tier firms.Research limitations/implicationsSingle country and one industry constitute the main limitations of this research. Future research could include multiple countries and industries to allow for greater generalization of findings.Originality/valueThe paper provides new insights on how social upgrading might be compromised within the global value chains context and its impact on developing country supplier firms, workers and their families.

The Relationships among Emotional Demand, Job Demand, Emotional Exhaustion and Turnover Intention

The objectives of this paper are to assess the levels of job demand, emotional demand, emotional exhaustion and employee turnover intention and to examine the relationships among these concepts in the context of three selected apparel manufacturing firms in Eastern region of Sri Lanka. Employee absenteeism and turnover are key issues of apparel firms in Sri Lanka. In order to achieve the objectives of this paper, a questionnaire based survey was conducted among 153 employees of apparel firms and collected data were analyzed by using univariate and bivariate techniques. The findings of this paper revealed that there is a strong positive relationship between emotional demand and emotional exhaustion, emotional demand and turnover intention, job demand and turnover intention, and emotional exhaustion and turnover intention. At the same time, there is a moderate positive relationship between job demand and emotional exhaustion. The findings of the study have various managerial implications for the apparel manufacturing firms to prevent or control employee stress, absenteeism and turnover related issues and to develop good labour-management relationship.

Environmental upgrading of an apparel firm in Bangladesh: a case study of VIYELLATEX

Subject area The case could be used in many courses in the field of business and management, for example, environmental management, strategic management, corporate strategy, green or sustainable marketing and international business. Study level/applicability The case has a difficulty level of being appropriate for undergraduate and postgraduate students. However, in utilizing this case as a required component of business courses at various levels, the authors have discovered a different approaching between undergraduate students and postgraduate students in answering those discussion questions. Undergraduate students have tended to focus on the more conceptual and basic approaching based on understanding the main concepts of environmental upgrading. Postgraduate students have a better application and critical thinking based on a better understanding of the fundamental knowledge and concepts. Accordingly, the case has been developed in a manner that will allow students to realize the importance of environmental issues and analyze the company’s main issues as detailed in the case and then suggest opinions and any ideas for the strategy the company should consider and pursue in future. Furthermore, students should identify several points on the company’s chosen strategies and actions for environmental upgrading. Case overview This case is written in the form of an interview with the Chairman and chief executive officer of VIYELLATEX Group, one of the leading firms which embarked upon environmental upgrading in the apparel industry of Bangladesh and in the world. This is an analytical case and not a decision-making one. The main theme of the case revolves around analyzing what drove VIYELLATEX Group to upgrade environmentally, how the group upgraded, the challenges that VIYELLATEX Group has faced and outcomes of environmental upgrading. Environmental upgrading implies an improvement in environmental performance through changes in technological, social and organizational processes and avoiding or reducing the environmental impacts of businesses. In summary, the VIYELLATEX case is an investigation of a leading company in Bangladesh to implement environmental standards and management practices being part of the apparel global apparel industry governed by global retailers and brand marketers. Expected learning outcomes The learning outcomes are understanding of “corporate sustainability” as a corporate social responsibility of business philosophy, understanding of key features of the apparel industry in Bangladesh, understanding of the main issues and challenges faced by the apparel firms (suppliers) involved in international business regarding environmental upgrading, understanding of the relationship with primary stakeholders, in particular buyers of apparel firm (defining stakeholders and how to cooperate with stakeholders) and understanding of the environmental upgrading in terms of its drivers, processes and outcomes. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code: CSS 4 Environmental Management.

The Impact of Job Tension on Job Satisfaction: A Study on Executive Level Employees of the Apparel Industry in Anuradhapura District of Sri Lanka

Apparel industry in Sri Lanka has become major contributor to Sri Lanka’s economic development. Due to supply of low cost creative labour and organizational friendly government policies, many international apparel brands and apparel firms are outsourcing their manufacturing functions to Asian countries. Of those, Sri Lanka is a leading country where most apparel sector giants are interested to invest in. Further, in Sri Lankan context apparel sector is highly competitive as quite a number of big giants such as MAS Holdings, Brandix Apparel Lanka Ltd, Hela Clothing (Pvt) Ltd are operating in the market. Due to this high competitiveness in the industry, greater struggle is visible to attract and retain key talent. However, retaining talent has become difficult due to the job tension associated with high competitiveness. In the current study, the researchers attempt to investigate in depth the impact of job tension on job satisfaction of the executive level employees of the Apparel Industry, with special reference to Anuradhapura District. The executive level employees in three leading garment manufacturing organizations in Sri Lanka were investigated through a sample of 100 employees. Simple random sampling method was used to select the representative sample. A self-administrated structured questionnaire was used to collect data. The correlation analysis and regression analysis were used to test the research hypotheses. The study confirmed that job tension is significantly correlated with employee job satisfaction. The findings of the study also indicated that there is a strong negative relationship between job tension and job satisfaction of executive level employees. This study directly provides a major theoretical contribution filling the gaps of former studies which were done on apparel sector. The findings and the recommendations of the current research directly addresses lot of practical issues related to job tension and job satisfaction faced by the apparel firms.

E-Commerce and Industrial Upgrading in the Chinese Apparel Value Chain

ABSTRACTThe economic and social gains from electronic commerce (e-commerce) that promote innovation, industry upgrading and economic growth have been widely discussed. China’s successful experience with e-commerce has had a positive effect in transforming consumer-goods sectors of the economy and motivating economic reform. This article looks at how e-commerce reduces barriers to entry and enables firms to move up the value chain by using the global value chain framework to analyse the impact of e-commerce on the upgrading trajectories and governance structures of China’s apparel industry. For large Chinese brands, e-commerce has enabled end-market diversification. For small- and medium-sized enterprises, e-commerce has facilitated entry with functional upgrading as well as end-market upgrading. In the “two-sided markets” created by platform companies, the “engaged consumers” are the demand side of this market, and “e-commerce focused apparel firms” are the supply side of the new market. Consumers and platforms are more directly involved in value creation within this emerging internet-based structure.

Autonomy support, need fulfilment and job performance in lean implemented textile and apparel firms

PurposeThe purpose of this study is to investigate conditions that facilitate shop-floor operators to fulfil their needs to carry out job roles and whether the need fulfilment affects their job performance in lean-implemented textile and apparel firms in Sri Lanka.Design/methodology/approachThe data were collected from 922 shop-floor employees and their immediate supervisors. Statistical methods were used for the data analysis.FindingsThe results of the analysis imply the importance of managerial autonomy support and need fulfilment for enhanced job performance; the duration of lean production in operation moderates job performance in such a way that the longer the duration, the higher will be job performance.Originality/valueIt could be expected that academics and practitioners alike are motivated by a desire to clearly apprehend work systems in lean-implemented textile and apparel firms.

Sustainable value creation through new industrial supply chains in apparel and fashion

This paper explores the inter-organizational value creation, in apparel supply chain context, through circularity and digitalization for sustainability, by gathering evidences from vivid research experiences. It can be highlighted that inter-organizational value creation in both circular- and digital- apparel supply chains largely builds upon a variety of collaborative initiatives, and among a range of included members. Knowledge co-evolvement and business co-development, end-to-end integration and information transfer, and open networks are crucial to such collaborations – making development of new supply chain structures a meta-capability of apparel firms in the changing industrial landscape.

Networking, business process innovativeness and export performance: the case of South Asian low-tech industry

PurposeThe purpose of this study is to investigate the role of business process innovativeness in the networking-export performance relationship in a developing country low-tech industry setting. Most innovation research in international business and entrepreneurship is conducted on high-tech industries in developed countries. Less research has focused on the low-tech industry context. This study bridges this research gap by testing whether international new ventures’ (INVs) networking resources impact their export performance through business process innovativeness.Design/methodology/approachThe study tests the link between low-tech INVs’ networking, business process innovativeness and export performance using a sample of 647 export start-up apparel firms in Bangladesh, the second largest apparel exporter in the world.FindingsThe results recognize that an INV entrepreneur’s personal and inter-firm networking are directly and positively related to business process innovativeness and export performance. The findings also indicate that business process innovativeness acts as a mediator only between an INV’s inter-firm networking and its export performance.Research limitations/implicationsThe study was undertaken in a Bangladeshi low-tech industry setting-the apparel sector; thus, future research may include data collection from a range of industries across countries. Data collected for the purpose of this study used a cross-sectional research design, and this may only have confirmed the relationships in the model and not causality between the constructs.Practical implicationsThe findings highlight that low-tech INVs should focus more on leveraging their personal and inter-firm networking resources, as this should result in improved export performance. The results also provide directives for INVs in regard to improving their business process innovativeness to achieve increased performance.Originality/valueThe study is not only carried out in the context of low-tech early internationalizing firms (i.e. INVs), but also contributes to theory and practice by testing whether INVs’ networking resources (personal and inter-firm) have an impact on business process innovativeness, which in turn leads to improved performance.

Implementation of lean production practices and manufacturing performance

PurposeThe purpose of this paper is to investigate the effects of lean production practices and lean duration (the duration for which lean production is in operation) on manufacturing performance.Design/methodology/approachThe survey was used as the main method of data collection. In addition to survey data collected from 1,189 respondents from export-based textile and apparel firms operating in Sri Lanka, longitudinal data were collected over a period of seven months from a firm in the study sample to corroborate the survey findings.FindingsThe findings revealed that lean production practices significantly enhance manufacturing performance. Further findings revealed the importance of the duration of lean production in operation in achieving higher levels of manufacturing performance. This provides empirical support for the contention that the adoption of lean production can only be achieved through time.Practical implicationsFindings have implications for practices of export-based textile and apparel producing countries from Asia, Latin and Central America, the Caribbean, Eastern Europe, and North Africa, which are competing intensively with each other for their market share in the global export-based textile and apparel production.Originality/valueManufacturing firms are adopting production methods and management practices to become leaner and fitter to create a new labour intensive production model that generate distinctive internal capabilities for survival and growth in international markets. Academics and practitioners in the field of manufacturing technologies will be interested in better understanding how lean production practices would enhance manufacturing performance from a non-western developing country context.

A Development of a Simulation Tool for Production Planning with Capacity-Booking at Specialty Store Retailer of Private Label Apparel Firms

A Development of a Simulation Tool for Production Planning with Capacity-Booking at Specialty Store Retailer of Private Label Apparel Firms

On the Growth of European Apparel Firms

According to the European Skills Council, the apparel industry is experiencing a renaissance in countries throughout the European Union, and this renaissance is marked by innovation and technical development among small firms. In this paper, the AEGIS database is used to estimate a growth model for the apparel industry. The annual rate of growth of European apparel firms is modeled and measured in terms of growth in number of employees since the firm was founded. The model is presented through descriptive statistical analyses on the relevant variables that were used to estimate this dimension of firm performance—founder characteristics including gender and education, as well as whether the firm is family owned. The model has implications for identifying factors important to apparel firm growth that could help in policy development designed to foster increased industry growth.

Effects of continuous improvement on shop-floor employees’ job performance in Lean production

PurposeThe purpose of this paper is to present empirical findings of the effect of continuous improvement (CI) on shop-floor employees’ job performance in the Lean production system-implemented textile and apparel firms.Design/methodology/approachA random sample of 657 shop-floor employees engaged full-time in Lean production systems-implemented textile and apparel firms in Sri Lanka responded to the survey. Statistical methods were used for data analysis.FindingsIt was revealed that CI significantly and positively influences shop-floor employees’ job performance, and the duration of Lean production in operations (termed as Lean duration) moderates this relationship.Originality/valueInvestigations on the ways in which CI initiatives influence employees is important in creating an environment to sustain the improvement efforts over a longer period. Such lessons would be valuable for academics and practitioners alike worldwide.

The Effect of Integration with Global Apparel Value Chain

This article estimates the effect of integration with global apparel value chain on performance of Bangladesh apparel firms. The study does it by estimating an augmented Cobb–Douglas production function. The findings show that both backward linkage with foreign suppliers of intermediate inputs and forward linkage with global retailers of apparels positively affect firms’ output and labour productivity. By contrast, backward linkages with local suppliers have adverse effects on firm performances. The findings imply that it is a firm’s integration with the global apparel value chain, not the conventional backward linkage with domestic suppliers, that defines success of Bangladesh apparel industry in a globalizing world.

Effect of total productive maintenance practices on manufacturing performance

Purpose– The purpose of this paper is to investigate the effect of total productive maintenance (TPM) practices on manufacturing performance of textile and apparel manufacturing firms.Design/methodology/approach– A self-administered survey questionnaire was used for data collection. A total of 236 usable responses resulted in a 78 percent response rate from 30 textile and apparel firms. Correlation and regression analysis was performed using SPSS software to identify the effect of TPM on manufacturing performance.Findings– The results show that all the TPM practices have positive and significant relationship with manufacturing performance and significantly improve cost effectiveness, product quality, on-time delivery and volume flexibility.Practical implications– The study presented in this paper offers academics and practitioners a better understanding of the relationship and impact of the TPM practices on the manufacturing performances. Thus practitioners will be able to make better and more effective decisions about the implementation of TPM practices.Originality/value– The understanding of the effect of TPM practices on manufacturing performance is timely for labor intensive manufacturing industries such as textile and apparel since it has not been researched adequately. Therefore, findings will impact the global textile and apparel industry positively.

Perceived Organizational Support and Non-managerial Employees’ Commitment to Change in Sri Lankan Apparel Firms

Successful implementation of planned change efforts continues to be recognized as a major challenge for organizations. Following this problem, we argue the appropriateness of perceived organizational support in explaining non-managerial employees’ commitment to change. Data were collected from a sample of machine operators working in recently 5S implemented five Sri Lankan apparel organizations through a questionnaire survey. The results imply the importance of perceived organizational support by employees in order to foster their affective and normative commitment to change while minimizing negative effects of continuance commitment. This research makes a novel contribution to the change management literature by being among the first to examine perceived organizational support in commitment to change.

Factors determining social and environmental reporting by Indian textile and apparel firms: a test of legitimacy theory

Purpose– The purpose of this research is to investigate the factors determining the social and environmental reporting (SER) of Indian textile and apparel (TA) firms.Design/methodology/approach– The 2010 annual reports of a sample of top 100 Indian TA firms listed on the Bombay Stock Exchange were examined to assess the extent of SER. SER was assessed based on the Global Reporting Initiative index applicable to the TA industry. Multiple regression analysis was conducted to investigate the determinants of SER.Findings– This study reports a low extent of SER in the annual reports of Indian listed TA firms, with a mean disclosure of 14 per cent. On average, firms reported more extensive environmental information, with a mean disclosure of 18.4 per cent, compared to social information, with a mean disclosure of 10.7 per cent. Most firms reported social information relating to “labour practices and decent work”, while the reporting of information relating to “human rights” was sparse. Overall, the SER patterns provide support for legitimacy theory. Consistent with legitimacy theory expectations, corporate size, brand development and audit committee size are significant factors determining the variation in SER. No significant relationship was found between board independence, level of ownership and SER.Originality/value– There is no existing study specifically on SER by TA firms in India. In fact, there is surprisingly little research on SER in the Indian context in general. Given the dearth in research on corporate social reporting in the Indian context, the study extends prior literature on corporate SER by concentrating on SER of TA firms in an emerging economy. The theoretical contribution of this study is the testing of legitimacy theory in the context of an emerging economy. This study contributes towards practice by delineating the relationship between governance structure and SER, particularly with regard to issues such as child labour. These findings have implications for the future development of reporting standards and regulations in regard to corporate governance in India. The dearth of social reporting by Indian TA firms has implications for foreign purchasers of branded products, as international companies have been implicated in sub-optimal social or environmental practices or incidents.

Developing an analytic network process model for identifying critical factors to achieve apparel safety

Apparel safety is a key determinant of competitiveness in today’s dynamic and turbulent business environment. Apparel risks may cause catastrophic damages to wearer and result in substantial costs in terms of lost production and emergency recall operations. Identification of user safety indicators associated with apparel design and production is a very complex and critical task. The aim of this paper was to propose an analytic network process (ANP) model that serves to identify critical indicators for achieving apparel safety. This was the first time that this method was used in such a context. First, we constructed a reference framework of the indicators that contribute to achieving apparel safety based on a systematic analysis of the related references. Then, we developed an ANP model that provides a systematic approach to explore and analyze influential relationships between safety indicators and computes a weight to each indicator representing its relative importance. A comparison was conducted between ANP and analytic hierarchy process which shows the differences between the two methods. Finally, managerial implications were presented for apparel firms. The model also provides an efficient evaluating mechanism for safety indicators of apparels in industry.