Textile Firms Research Articles

Defining green business ethics and exploring its adoption within the textile industry of Pakistan

The main objective of this research paper is to propose a newly introduced concept of Green Business Ethical Practice (GBEPs) which is a composite set of 18 practices include consisting of elements that can be grouped under the following actions: repurposing & reusing, recycling, remanufacturing, reverse logistic, emergency preparedness plan, maintenance and continuation of emergency system, philanthropy, fair dealing, child labor, essential healthcare, women rights, paternal leaves, compliance to transgender laws, carbon dioxide footprint reduction, water waste management, air pollution, dust pollution, and noise pollution. This qualitative study has been conducted on twenty-five textile firms which are recognised as ‘green’ by international authorities and are engaged in export of textile good. The key findings of the study reveal that adoption of GBEPs not only enhances a company's reputation at the international level in terms of its responsiveness toward environment and international society but also helps it in boosting its ecological enactment by managing its environmental obligations in an efficient manner. The study recommends to formulate a comprehensive policy and regulation package for companies trying to be green and intending to the part of global value chain. There should be a universal and composite set of codes encompassing practices of social, environmental under one umbrella like GBEP to simplify the way to become internationally active. Collective steps like awareness campaigns, social recognition workshops towards conservation of environment and human integrity should be taken in order to achieve collaborated sustainable growth. Keywords: GBEP, GBE, Textile, Business, Environment

Effect of Profitability and Financial Leverage on Capita Structure inPakistan Textile Firms

This study concentration the effect of profitability and financial leverage on capital structure in Pakistan textile firms. This study is based on selected 10 listed KSE textile firms the data for the period 2009 to 2014. Estimated regression model and correlation between the financial leverage and profitability on capital structure. According to our finding there is negative relationship between capital structure and profitability and positive relationship between capital structure and financial leverage if the financial leverage is increase the profitability is decrease and vice versa there have negative correlation.

The influence of innovation stimulus, facilitating factors and support mechanisms on innovation performance in Brazilian small textile firms

The ability of the organisation to develop new products is crucial in rapidly changing business environments, and thus, customer demographics, consumers' expectations and buying behaviour play an important role. Hence, exploring the antecedents of innovation performance becomes more important. This study analyses the relationships among innovation stimulus, facilitating factors and support mechanisms for innovative performance in the textile industry of Santa Catarina, Brazil. The sample included 128 respondents, who were all employees of five small and medium-sized textile firms; data were analysed using structural equation modelling. We found that innovation stimulus, facilitating factors and support mechanisms are correlated, while support mechanisms have no influence on innovation performance. The results also highlight a concern regarding the cost and time spent on developing innovation projects. This research contributes to innovation performance literature by analysing innovation antecedents including visions of innovation as both a process, represented by efficiency, and a result, represented by efficacy.

ELEMENTS OF ORGANIZATIONAL CULTURE THAT ENCOURAGE INNOVATION DEVELOPMENT

This study aims at analyzing the elements of organizational culture that foster innovation development in the Brazilian textile industry. Based on the Martins and Martins (2002) theoretical framework, an exploratory and quantitative survey was developed with primary data obtained from a survey applied to 587 employees of different organizational levels of 64 textile firms, using the following dimensions of culture: strategy, structure, support mechanisms, behaviors that stimulate innovation and communication. The multivariate treatment of data was performed using exploratory factor analysis. The results pointed to a model of analysis that empirically regroups and validates the determinants of innovation in three dimensions: strategy, stimulus to innovation and communication, avoiding the overlapping of items, an aspect criticized by several authors. The implications of research can allow managers to determine how organizational culture can better promote innovation, a key issue in highly competitive environments.

Factors Affecting the Capital Structure of the Textile Industry in Bangladesh: An Inferential Study

The main objective of the study is to recognize the major factors influencing the capital structure of the textile firms and to identify the association among them from the context of Bangladesh. The researchers reviewed different conditional theories of capital structure before identifying the determinants of the textile firms. For this purpose, panel data for A-category listed textile companies of the Dhaka Stock Exchange were selected. The study developed multiple regression models for the period 2008 to 2017. Key -independent variables include firm profitability, tangibility, growth, age, liquidity and Size. Leverage ratio was used as the dependent variable. The study explored that profitability; firm size and liquidity have significant positive relationship with the debt ratio, which is consistent with the Trade-off theory. On the other hand, tangibility, growth rate and age are not significantly related with the said ratio. The findings of this study will help financial managers to make the right decisions on fund borrowing and equity financing. Then they can use borrowing in a proper way to support the market value of their companies.

The influence of innovation stimulus, facilitating factors and support mechanisms on innovation performance in Brazilian small textile firms

The influence of innovation stimulus, facilitating factors and support mechanisms on innovation performance in Brazilian small textile firms

Eco-labeling and sustainability: A case of textile industry in Pakistan

Abstract Industrial pollution is a big concern in many manufacturing sectors including textile sector. Recently, voluntary actions for environmental protection have gained their importance. Eco-labeling is one of the most important schemes of voluntary environmental actions and has been recognized as an effective measure to reduce industrial pollution. This paper analyzes the effect of eco-labels on the textile firms’ environmental and financial performance. Three stage least squares regression is applied using data from 128 firms listed in Pakistan Stock Exchange. Results reveal that eco-labels have a significant positive effect on textile firms’ environmental and financial performance. This indicates that eco-labels promote the sustainable growth of textile firms. Furthermore, financial performance, material cost, and age have a significant positive effect on the environmental performance of textile firms whereas machinery and size have a significant negative effect on the environmental performance. Likewise, debt-equity ratio and size of the firm have a significant positive effect on the financial performance of the textile firms wheras the environmental performance, machinery, and age of the firms have a significant negative effect on the financial performance.

Impact of liquidity and financial leverage on firm’s profitability – an empirical analysis of the textile industry of Pakistan

Purpose This study aims to determine the impact of liquidity and financial leverage on the profitability, using a sample of 40 selected publicly quoted companies in the textile sector of the Pakistani economy. Design/methodology/approach Through quantitative approach, pooled panel regression and descriptive statistics models are used by taking annual data of Pakistan’s textile sectors from 2006 to 2016. Secondary data has been gathered from financial statements of the firms. Findings The results revealed that there is a positive relationship between liquidity and profitability and negative relationship between financial leverage and profitability. The results for liquidity measure CR revealed positive strong impact on ROA and the financial leverage measure D_E ratio showed negative but not strong impact on ROA. The other part of result concluded that there is a positive strong impact of C_R on ROE too and D_E has a negative impact on ROE. Research limitations/implications The results are showing the impact among these ratios for the textile sector of Pakistan only. Practical implications This study can help higher management of textile firms firm in decision-making stating clearly about how to perform well to enhance financial health of company, which can encourage investors to invest in companies having sound market standing. Originality/value This study takes the latest empirical data with different analysis technique.

Enhancing firms’ environmental performance and financial performance through green supply chain management practices and institutional pressures

PurposeThe purpose of this study is to examine how individual dimensions of green supply chain management (GSCM) practices affect firms’ financial performance directly and through environmental performance. Furthermore, the authors investigate the contingent role of institutional pressures on the direct link between GSCM practices and environmental performance and GSCM practices and financial performance.Design/methodology/approachUsing a convenience sampling technique, data were collected from 238 textile firms in the province of Punjab, Pakistan. Hayes’ PROCESS macro was used to analyze the hypotheses.FindingsThe findings demonstrate that GSCM practices (green manufacturing, green purchasing, eco-design, cooperation with customers and green information systems) have a significant direct impact on firms’ financial performance directly and through environmental performance. Additionally, institutional pressures significantly moderate the nexus of GSCM practices-environmental performance and environmental performance-financial performance.Practical implicationsTextile firms should implement GSCM practices not just because of the pressure from regulatory bodies but also to elevate their environmental and financial performance. Government should also play its role in influencing the organizations for the adoption of GSCM practices, as its role is a significant one in preserving the environment.Social implicationsBecause of less emission, energy usage and wastage, environmental performance will be increased, which affect the society positively.Originality/valueAlong with studying the GSCM practices in the textile industry of Pakistan, drawing upon the institutional theory, the contingent role of institutional pressures on two stages (first, between GSCM practices and environmental performance, and secondly, between GSCM practices and financial performance) is the novelty of this study.

Participation in the Kaesong Industrial Complex and its impact on productivity: South Korean textile firms’ experiences

This paper examines the effects of participating in the KIC on firms’ productivity using firm-level data from 1998 to 2012, focusing on the textile sector. To do this, we implemented PSM estimations employing the radius matching method with 0.01 caliper and 10nearest-neighbor matchings with replacement. We found 100 matched firms in control groups(domestic firms) that corresponded to each of the 10 treated firms.For analysis, we used a difference-in-differences (DID) framework and extended the basic DID framework to the event study framework of Gathmann et al. (2018). The results reported that the treated firms experienced the increased sales but the improvement in sales had not lead to improvements in productivity. These results can be found in the DID event study as well as the DID analysis. That is, improvement in productivity through FDI cannot be found in the empirical results.

Determination of the Efficiencies of Textile Firms Listed in Borsa İstanbul by Using DEA-Window Analysis

Global competition enables countries’ advantageous sectors to stand out as an indicator of their economic power. The importance of these sectors may vary by country or the time period they operate in. The textile industry is one of the sectors that significantly contributes to Turkey’s economic growth. Thus, it is important to monitor the financial activities of the firms in the textile sector as a performance indicator since it is evident that the financial efficiency of each company will contribute positively to the overall efficiency of the whole sector. In this study, the financial activities of 19 firms in the textile sector being traded on Borsa Istanbul (BIST) for the period 2008-2017 are examined. For efficiency analysis, DEA (Data Envelopment Analysis) -Window Analysis method was applied by using financial indicators of these companies. It was observed that the highest average efficiency value of the companies was realized in 2017 with 94.09%. The average activity levels in other years were found to be in the range of 60%-90%. In the empirical analysis, the efficiency values of the top five companies were determined to be at the level of 90%-100%. DESA has achieved the most successful performance in average efficiencies with a score of 98.04 when the whole period is considered. SÖNMEZ and MENDERES firms have taken the second and the third places with scores of 97.40 and 94.74, respectively. The close performances of the top three firms were also observed in three-years windows. However, in the three-year window analysis, SÖNMEZ ranked the first, DESA ranked the second and MENDERES ranked the third according to their average scores. One of the reasons for this small difference between the rankings is that, firstly, the firms’ performances have been very close to each other, and secondly the effect of the low score (76.11) obtained by SÖNMEZ in 2008 has been diminished for the firm in the three-year window analysis. KARSU occupied the last place with the lowest average efficiency score in both rankings.

Impact of knowledge management capability and green supply chain management practices on firm performance

Knowledge management is one of the most important strategic resources of the firm which has been ascertained to many organizations to acquire and apply it before their competitor for achieving competitive advantages. Similarly, due to rising environmental awareness among customers, governments, NGOs, and researchers, firms are facing increasing pressure to implement environmental management practices in their operations. The purpose of this paper is to identify the influence of knowledge management capability (KMC) on green supply chain management (GSCM) practices adoption of the manufacturing firm and subsequently the impact on firm performance. The data were collected from 262 Bangladeshi textile manufacturing firms and analyzed using structural equation modeling, typifying that exploratory and quantitative research. Drawing upon the resource-based view the study revealed that KMC has a significant positive effect on internal and external-GSCM practices adoption. Further, the study revealed that internal-GSCM practices have significantly positive effects on both economic and environmental performance while the external-GSCM practice has positive environmental performance but negatively affects economic performance. Finally, this study indicates that KMC is an intuitive resource of a firm that can bring sustainable performance through GSCM practices.

Corporate Governance Mechanisms and Capital Structure Decision of Textile Companies in Bangladesh

Purpose: The purpose of this study is to examine the impact of corporate governance mechanisms on capital structure decisions of Textile Companies in Bangladesh. In particular, the paper examines the degree to which internal corporate governance mechanisms and an external corporate governance mechanism affect Bangladeshi textile firms’ capital structure. Methodology of the Study : The paper uses a multiple regression analysis to examine the effect of corporate governance and capital structure for a sample of 10 Bangladeshi textile firms listed in DSE during period from 2011 to 2017.Board size, Board composition, Board meetings & Board ownership were used as corporate governance variables and Return on Assets (ROA) also used as control variable and debt ratio used as the measure of capital structure. This study also used different statistical tools like descriptive statistics, Pearson correlation and multiple regressions. Findings: The findings indicate that the relationship of Debt Ratio with Board Size & Board Composition is positive and highly significant, a less significant or moderate positive relationship between Debt Ratio & Board Ownership, insignificant and negative relationship between Debt Ratio & Board Meetings and the Debt Ratio is negatively related to Return on Assets that is significant.CG mechanisms (Board Size & Board Ownership) are significantly and positively impact on firms Capital Structure/ Debt Ratio (DR) and (Board Composition & Board Meetings) are also positively impact on firms Capital Structure but that is statistically insignificant and Return on Assets is highly significant & negatively impact on firms Capital Structure/ Debt Ratio (DR) of Listed Textile Companies in Bangladesh. [Keywords : Corporate Governance (CG), Capital Structure (CS), Debt Ratio (DR)] DOI : 10.7176/JESD/10-20-02 Publication date :October 31 st 2019

The Role of Knowledge Adoptive Capacity towards Exports Performance

Purpose - Knowledge absorptive capacity plays a significant role in export performance. It is a dynamic capability that firms apply to gain competitiveness in today’s knowledge-based economies. The aim of the present research is to identify relationship among dimensions of KAC and export performance. Design/Methodology - Nature of study was descriptive and quantitative. Data was collected through questionnaires from 291 large scale textile firms of Pakistan. Smart PLS was used in analyzing data by incorporating CFA and SEM techniques to test the hypotheses. Findings - The results reveal that knowledge acquisition, transformation, and exploitation have significant positive relationship with export performance.

The social desirability of offshoring: a Swiss consensus (1945–1975)

Abstract This article focuses on the evolution of the rhetoric and practice of corporate offshoring in Switzerland from the post-war economic boom to the industrial crisis in the mid-seventies. The virtue of a historical perspective on the issue of offshoring is to show how recent controversies have their roots in previous decades, suggesting the need to reassess recent debates about structural change in light of earlier experiences. Relying on the cultural and narrative perspective in business history, the article shows the emergence of an unexpected consensus about the legitimacy of corporate offshoring between employers, Swiss authorities and even Swiss labour unions after 1945. The explanation for that counter-intuitive alliance is found in the actors’ representations and discourse about what they considered to be excessive economic circumstances. Indeed, during this golden age of considerable economic expansion, demand exceeded supply and the Swiss firms constantly complained of labour shortages. Offshoring was therefore seen as a cure for the lack of workers within Switzerland and allowed multinational companies to focus on the most lucrative production activities. Swiss workers and unions shared this view, preferring some low-skill activities to be done outside the country rather than seeing the arrival of more foreign workers, who tended to be less unionised and who were accused of aggravating the housing shortage. In response, the Swiss authorities supported the offshoring process by providing some tariff favours to allow textile firms in particular to relocate their production abroad and to reimport it to Switzerland without paying taxes. Finally, the article shows how the consensus broke down after the economic downturn of the mid-70 s and how changing historical circumstances induced new diverging narratives about the social desirability of the offshoring phenomenon.

The Belt and Road Initiative and Its Perceived Impacts on the Textile and Garment Industry of Vietnam

The main purpose of this study was to find out the perceived impacts on the garment and textile industry of Vietnam from the Belt and Road Initiative (the BRI), a global-scale developmental and trade facilitation policy of China. The research applied both desk review and in-depth interviews with 54 leaders and high-ranked officials from public and private sectors in 2017 to identify potential impacts of the BRI on the Vietnam textile and garment industry. In addition, perceived challenges and opportunities of the BRI were also examined. Respondents from both sectors agreed that the initiative could foster textile export and the development of infrastructure. Apart from that, the main challenge is recognized as the poor competitiveness of Vietnamese textile firms on the international commercial playground. Solution insights that were offered through interviews suggested that the competence of domestic apparel brands and establishment of ODM (Original Design Manufacturing) and OBM (Own Brand Manufacturing) business models in Vietnamese textile producers may play the key roles in coping with the new challenges and in grasping opportunities that the initiative has to offer. From the perspective of the state, an improved public administration system is perceived as the key element in supporting the enterprises for upcoming challenges.

Uncovering the Link between Strategic Human Resource Management and Crisis Management: Mediating Role of Organizational Resilience

The paper has attempted to examine a critical link between the strategic human resource management and crisis management. In this, the authors have taken a major drive to statistically test mediation and moderation simultaneously. Drawing upon the normal accident theory, the present study examined the link between strategic human resource management (SHRM) and crisis management through the mediation of organizational resilience. By adopting quantitative research approach, the data were collected from 176 HR managers of textile firms in Pakistan through survey method. The data were analysed by employing PLS-SEM technique. Results revealed that SHRM is positively linked with crisis management through the mediating effect of organizational resilience. In general, the results revealed that organizational resilience plays a key role in facilitating the relationship between SHRM and crisis management. The paper forwards notable implications for theory and practice followed by scope for future studies to enthusiastic scholars in the domain of HRM, strategic HRM and crisis management.

Fourth industrial revolution: a way forward to attain better performance in the textile industry

Abstract The textile industry is one of the fastest growing industries which expressively contributes to the economic growth of Malaysia. However, in recent years, the situation has changed and demonstrates a downward trend. The imports are growing faster compared to the exports, consequently resulting in a low contribution to the gross domestic product (GDP). To address the issue, this study aims to investigate the role of Industry 4.0 on the performance of firms engaged in the production and services of the Malaysian textile industry. To achieve the objective, this study adopted a cross-sectional research design. A survey was carried out to collect data from employees of textile firms. Results of the study found that Industry 4.0 positively contributed to the effectiveness of the production and services of the textile industry. Production and services have a positive role in the performance of textile firms. The current study provides an interesting insight into the future direction of research for studies on organisational performance, which can be extended to different manufacturing-based industries. In addition, it provides the rationale for the adoption and implementation of smart technologies in these industries. It has been found that cyber-physical systems (CPS), interoperability, a smart city and a smart product have a positive effect on production and services. Additionally, it is not possible without the effective implementation of technology. Thus, the current study provides valuable insights into the improvement of the textile industry’s performance.

Challenges and progress in integrating knowledge: cases from clothing and textiles in South Africa

PurposeThe central purpose of this paper is to explore how implicit knowledge capabilities and sharing helps secure organizational survival and success. This article explores the challenging in better management knowledge in the South African clothing and textile industry. In moving from a closed protected market supported by active industrial policy, South African manufacturing has faced intense competition from abroad. The ending of apartheid removed a major source of workplace tension, facilitating the adoption of higher value-added production paradigms. However, most South African clothing and textile firms have battled to cope, given cutthroat international competition. The authors focus on firms that have accorded particularly detailed attention to two instances characterized by innovative knowledge management. The authors highlight how circumstances may impose constraints and challenges and how they paradoxically also create opportunities, which may enable firms to survive and thrive through the recognition and utilization of informal knowledge, both individual and collective.Design/methodology/approachThis study is based on in-depth interviews, primary company and industry association and secondary documents.FindingsThe study highlights how successful firms implemented systems, policies and practices for the better capturing and utilization of external and internal knowledge. In terms of the former, a move toward fast fashion required and drove far-reaching organizational restructuring and change. This made for a greater integration of knowledge through the value chain, ranging from design to retail. Successful firms also owed their survival to the recognition and usage of internal informal knowledge. At the same time this process was not without tensions and paradoxes, and the findings suggest that many of the solutions followed a process of experimentation. The latter is in sharp contrast to many South African manufacturers, who, with the global articulation of production networks, have lost valuable knowledge on suppliers and their practices. At the same time, both firms have to contend with an increasingly unpredictable international environment.Research limitations/implicationsAt a theoretical level, the study points to the need to see informal knowledge not only in individualistic terms but also as a phenomenon that has collective, and indeed, communitarian features. Again, it highlights the challenges of nurturing and optimizing informal knowledge. It shows how contextual features both constrain and enable this process. It further highlights the extent to which the effective utilization of external knowledge, and rapid responses to external developments, may require a fundamental rethinking of organizational structures and hierarchies. This study focuses on a limited number of dimensions of this in a single national context but could be replicated and extended into other contexts.Practical implicationsThe study highlights the relationship between survival, success and how knowledge is managed. This involved harnessing the informal knowledge and capabilities of workforce to enhance productivity, in conjunction with improvements in machinery and processes, and a much closer integration of design, supply, production and marketing, underpinned by a more effective usage of IT. Paradoxically, other clothing and textile firms have survived doing the exact opposite – reverting to low value-added cut-and-trim assembly operations. At a policy level, the study highlights how specific features of South African regulation (above all, in terms of job protection), which are often held up as barriers to competiveness, may help sustain the knowledge base of firms.Social implicationsThe preservation and creation of jobs in a highly competitive sector was bound up with effective knowledge management. The study also highlighted the mutual interdependence of employers and employees in a context of very high unemployment and how the more effective usage of informal knowledge bound both sides closer.Originality/valueThere is a fairly diverse body of literature on manufacturing in South Africa, and, indeed across the continent; however, much of it has focused on challenges. This study explores relative success stories from a sector that has faced a structural crisis of competitiveness, and as such, has relevance to understanding how firms and industries may cope in highly adverse circumstances.

Is an anarchist business organization possible? Textile firms in the industrial district of Alcoi during the Spanish Civil War (1936-39)

During the Spanish Civil War, in the Republican side, a social revolution broke out, led by the workers and their unions ending in many places in a business collectivization process. In the city of Alcoi, the anarchist union took control over more than 100 textile family firms, going through a rationalization process which unified the production of all textile firms overcoming a previous production crisis and attending the war demand. Does the Alcoi case during the Civil War prove the possibility of a successful anarchist business organization? This article tries to understand the development of business without a capitalist organization and the role of business networks in such a development. The organizational design and the administration of the collectivization process is an example of how socialization of the property and democratization of the decision-making process in the company were not opposed with rationality and efficiency, at least during a war context.