US Apparel Research Articles

Effects of Social Capital and Knowledge on Small US Firm New Product Development Innovations

Studies have highlighted the benefits of external knowledge building as a means of heightening a firm’s innovation activities. Simultaneously supply chain scholars have highlighted the lack of focus on social facets at the micro behavioral level, as well as the limited endeavors to build upon existing theories for new perspectives. Taking an exploratory approach to addressing literature gaps, the objectives of this research involve integrating constructs from social capital theory and the knowledge-based view of the firm to examine associations and interactions among network ties, social interactions, knowledge absorptive capacity, and knowledge acquisition in the development of new product innovations by US apparel and sewn products manufacturers (N=125). Quantitative data were collected via an online survey of both a national and state sample of small sized manufacturers. Findings regarding new product development indicated: positive associations for network ties, social interactions, knowledge absorptive capacity, and knowledge acquisition; network ties and knowledge acquisition; mediated relationships with social interaction and absorptive capacity; and moderated social interaction relationships with absorptive capacity and network ties­. These empirical insights highlight the importance of building external relationships for generating knowledge in amplifying innovation. Theoretical contributions, managerial implications, limitations and suggestions for future research are presented.

Social and environmental apparel practices and perceived value of “Made in the USA”

PurposeThis study aims to investigate the relationship between people’s socially and environmentally responsible apparel practices (SERAP) and valuing US made clothing, current perceptions of US made clothing and factors affecting apparel purchases.Design/methodology/approachAn online survey was completed by 502 US consumer aged 18-65. Five factors were identified representing responsible apparel practices and US made clothing. Inter-factor correlations were tested. People’s perceptions toward US made clothing were examined through perceived quality, purchase experience and intentions to pay premium prices.FindingsThere was a positive correlation between SERAP and valuing US made clothing. Perceived quality of US apparel influenced both actual purchase and intentions to pay higher prices. Availability and affordability were major purchase factors.Practical implicationsUS apparel companies that produce their products domestically may consider developing specific messaging that resonates with customers, taking advantage of the perception of high quality and being transparent with the cost of producing apparel domestically.Originality/valueThis study suggests domestically made apparel purchases as part of a move toward SERAP. Although previous studies have addressed consumer responsibility and sustainable businesses, the connection has been inconclusive. This study provides current data of renewed and growing interest in US made apparel and expands its value.

A retrospect on the US apparel industry: expert predictions and reality data

Purpose In 1978, the once powerful US apparel industry was on the cusp of change, and the consulting firm KSA conducted a Delphi survey of apparel executives’ predictions into the 2000s. The purpose of this paper is to compare actual changes over the subsequent decades with these 1978 expert predictions and explore the accuracy/inaccuracy of these “educated guesses” (KSA, 1978, p. 1). Design/methodology/approach The chorographic method was used to analyze the report and document historical data. Chorography is “concerned with significance of place, regional characterization, [and] local history […]” (Rohl, 2012, p.1) and includes contextual settings and researcher input. Primary data were examined during each decade and included: industry literature, government documents and labor data. The researchers used content analysis to reduce and organize data. Findings Findings cover three decades of Southeast US apparel industry data including imports, employment, number of plants, size of plants and productivity. Predictions were inaccurate about imports, predicted to be minor in comparison with domestic production, which they actually surpassed. Predicted decrease in employment was similar to actual decrease but reasons were inaccurate. Change in number and size of plants were over-predicted and under-predicted. Reasons given by experts were automation and government intervention; in actuality, limited automation occurred with insignificant impact in contrast to outsourcing, which decimated employment in US plants. Steady increase in productivity was predicted when productivity often decreased. Originality/value Previous studies focus on the textile sector; studies of the apparel sector tend to be regional or topical. This study is more expansive and provides insight into predictions and changes made in the US apparel industry at a critical time in its near demise. With the current climate of global change and increased market uncertainty, insights from this study may provide direction for rethinking of the domestic apparel industry for the USA and other developed countries.

Guess Again: Revisiting the Last Major US Apparel Union Campaign at 25

Abstract This year marks the 25th anniversary of the last major union organizing drive in the United States apparel sector. unite ran a difficult five-year campaign against Guess jeans, the largest apparel label in Los Angeles’s then powerful apparel industry. Though the union used a complex web of strikes, boycotts, and employment law suits, victory eluded unite. This article recounts the multi-year fight through interviews with key union-side figures, supplemented with an analysis of contemporaneous press clippings and legal documents. Findings challenge existing scholarship on the campaign. The union was more innovative in fighting Guess than is often acknowledged, but failed to follow up on its efforts in the la sector, abandoning apparel workers to a race to the bottom. The piece also finds evidence that the core strategy of Guess might have been successful in mitigating effects of globalization on sectors with extensive supply chains.

Advancing US small business apparel production: a state-level mixed-method exploration

PurposeThis study highlights the impact of attaining and incorporating knowledge and building relationships with other firms in US apparel production.Design/methodology/approachProducers of apparel and sewn products operating within a US state form the sample for this mixed methods exploration. Study 1 involves a qualitative analysis of the producers highlighting knowledge in interorganizational discussions. Study 2 quantitatively measures responses from 38 producing firms. Ordinary least squares (OLS) regression was used to measure associations, and simple slopes were computed to examine interactions.FindingsThe knowledge exchanged, according to participants in study 1, was limited, thus warranting further examination. Results from study 2 revealed strong associations among knowledge absorptive capacity, social interaction and people-oriented culture with network ties. A two-way interaction effect was found for absorptive capacity and social interaction, indicating association between social interaction and network ties was more positive at higher levels of absorption capacity and vice versa.Research limitations/implicationsFindings provide theoretical and applied support for building network ties. This research operationalizes complicated-to-measure constructs critical to the empirical measurement of junctions from two theoretical frameworks, in the context of a specific industry. Though acceptable for exploratory research, additional work is needed to refine reliability measures and to examine a national sample.Originality/valueThis study links elements of social capital- and knowledge-based views of the firm necessary for reviving US apparel production. Broader outcomes from this research include job creation providing support and growth in the US sewn apparel and goods industry that will drive US economy.

Capturing sustainable fashion purchase behavior of Hispanic consumers in the US

ABSTRACT Despite the vital role Hispanic consumers play in the U.S. apparel market, research on their sustainable apparel consumption behavior is limited. This study investigated the influence of normative expectations on young Hispanic consumers’ organic apparel purchasing behavior. A self-administered online survey was used to collect data from a population of Hispanic college students. The proposed conceptual model was tested using structural equation modeling (SEM). The study results revealed that social norms did not directly influence organic apparel purchase behavior of Hispanic consumers. Instead, social norms determined personal norms and organic apparel knowledge, which then affected the purchase behavior. Perceived health benefits also significantly affected young Hispanic consumers’ purchase behavior of organic apparel. We also found that organic apparel knowledge significantly affected the perceived quality and health benefits of organic apparel. This study contributed to the literature by 1) understanding the complex relationships of social norms with personal norms, organic apparel knowledge, and organic apparel purchase behavior of Hispanic consumers, and 2) incorporating perceived product value into the conceptual model. Findings of this study can help sustainable apparel manufacturers and retailers to develop effective marketing strategies for targeting Hispanic consumers in the US apparel markets.

Diagnostic analysis of US fashion brand’s Bangladeshi outsourcing

ABSTRACT The purpose of this paper is to examine Bangladesh’s performance as an outsourcing destination from the perspectives of buyers and suppliers involved in a representative US apparel company which has outsourced from Bangladesh. This study employed a sequential mixed method research design which consisted of quantitative evaluation and qualitative interviews. The sample was comprised of three buyers and three suppliers in the Phillip’s Van-Heusen (PVH). From the results of quantitative evaluation, it was found that Bangladesh has a greater advantage in the cost and quality clusters than Vietnam. The interviews revealed that the US buyers have some concerns in geographic location, trade restrictions, country’s political situation, warranty policies, and currency exchange situations. To strengthen Bangladeshi capability, Bangladeshi government’s investment to improve facilities, nomination of supplier’s backward linkage, improvement of manufacturing capacity, running improvement programs, negotiation to reduce tariff, and building mutual trust between buyers and suppliers were suggested. These diagnosis results provide the US buyers and the Bangladeshi suppliers with not only valuable information on the current status of Bangladesh’s performance but guidance to successful strategies for improvement of outsourcing performance.

The end of the Multi Fiber Arrangement and the pattern of US apparel trade

PurposeThis paper analyzes the effects of the expiration of the Multi Fiber Arrangement (MFA), which ended quota restrictions on US textile and apparel imports in 2005, on the sourcing of US apparel. We test if the realignment in trade following the phase out of quotas can be explained by comparative advantage and market size.Design/methodology/approachWe use a gravity framework to investigate the role of comparative advantage (labor costs) and other factors such as exporter size, PTAs and tariff reductions on the pattern of US apparel imports. Detailed data on quotas by country-product pair are used for the purpose.FindingsOur empirical results show a significant increase in imports from large quota constrained countries once the MFA ended. Moreover, the pattern of trade seems to favor low wage countries that have a comparative advantage in producing apparel, which is highly labor intensive.Originality/valueThe end of quotas removed a major distorting factor in US apparel trade. This study examines the role of trade theory in the changing pattern of apparel imports that followed the end of the MFA. We use a gravity framework to test the theory of comparative advantage and the role of exporter size. Previous studies on the end of the MFA and its effects, do not examine the causal factors behind the realignment of US apparel trade.

Labour market adjustment to third‐party competition: Evidence from Mexico

AbstractChina's exports reduce wages in importing countries, but few studies have looked at competition in third‐party markets. We examine labour market outcomes in Mexico's apparel and textile sectors associated with US apparel and textile imports from China. Using data on US imports in conjunction with quarterly Mexican labour force surveys, we show that US imports from China are associated with a reduction of employment in Mexico's apparel and textile sectors. These effects are the most pronounced for the least educated. Wages were not impacted on net except for possibly the poorest which would indicate stronger local labour market ties in the left tail of the wage distribution. Finally, the effects of trade‐induced demand shocks dissipate after about two quarters indicating low firm‐level adjustment costs.

Revealed comparative advantage for US textiles and apparel

PurposeThe purpose of this study is to identify US textile and apparel (TAP) products and categories that demonstrate export comparative advantage and their respective country destinations.Design/methodology/approachRevealed comparative advantage (RCA) and normalized revealed comparative advantage (NRCA) in the long term (1996-2016) and short term (2010-2016) using two-digit Harmonized Commodity Description and Coding System codes (HS codes) provide an insight into export advantage of TAP products. Non-parametric rank correlation (i.e. Spearman rank correlation) tests consistency between RCA and NRCA. Subsequently, NRCA using four-digit HS codes identify textile sub-categories with export comparative advantage. Bilateral trade data identify export destinations for sub-categories that indicate US export comparative advantage in the short term.FindingsAggregated product-level comparison of RCA and NRCA ranking indicates a consistent positive correlation between the two indices. The disaggregated findings reveal cotton fiber HS5201, artificial filament tow HS5502, non-wovens HS5603, cotton yarn HS5205, carpet and other floor coverings HS5703 and worn clothing HS6309 as sources of US TAP export advantage.Originality/valueThis research provides a comprehensive, current analysis of the US competitive position within the TAP global environment. Incorporation of NRCA into the study’s design demonstrates the flexibility of this measure in a new industry context.

Business environment-supply chain framework and benchmarking supply chain structures

PurposeThe purpose of this paper is to develop a supply chain management framework covering different business environment levels, that is, macro, micro and supply chain levels, and also to evaluate Haiti vs China as apparel-sourcing partners by assessing macro-level, supply-chain-level and micro-level environments from the US apparel buyers’ perspective.Design/methodology/approachIn order to achieve this, first, a framework covering these business environment levels was developed and tested through path analysis. Prior to path analysis exploratory factor analysis was conducted to verify proposed factor structures. Data were collected using face-to-face interviews with a sample of 41 apparel companies that operate in the USA and source from China and Haiti.FindingsThis study found that both supply-chain-level and micro-level environments positively impact global supply chain performance. Supply-chain-level also has a direct effect on micro-level environment and macro-level environment has only a direct effect on supply-chain-level environment. Interviews and discussions based on this framework indicate that Haiti’s proximity to the USA, price, low-wage rates, small-order sourcing opportunities and good basic sewing skills are among Haiti’s strengths.Originality/valueThis study is unique in developing a multi-level environment framework for supply chain management and in comparing Haiti and China in terms of their supply chains to evaluate the potential competitiveness of Haitian apparel supply chain.

Impact of quality management practices on change readiness due to new quality implementations

PurposeImplementing new quality initiatives in organizations is challenging, as it requires managers and employees to adjust to new processes, methodologies and even mindsets. The purpose of this study is to investigate the relationship between quality management (QM) practices and readiness for change due to implementing new quality initiatives such as lean, six sigma and to determine which dimensions of QM are more important to change efficacy and change commitment.Design/methodology/approachThe issues are examined in this study through the analysis of survey data obtained from US textile and apparel industry managers by using factor analysis, stepwise regression to construct path model and structural equation modeling.FindingsThis study identifies change readiness measures which are specific for quality implementations and establishes two constructs, namely, change commitment and change efficacy. The results indicate that as good Employee Relations increase, the level of organizational change commitment increases. If employees are engaged and empowered to provide excellent quality, then it is more likely that they will be committed to change due to implementing future quality initiatives. Moreover, a direct relationship between Customer Relationship Management and change efficacy is found. Companies with a strong customer orientation are more able to implement the quality initiatives that matter to their markets.Originality/valueThis study is unique in investigating the empirical relationship between QM practices and the dimensions of readiness for change due to implementing new quality initiatives via data from various organizations. This study empirically contributes to the QM literature with change readiness antecedents in quality implementation setting.

The Impact of Firm Financial Efficiency on Executive Compensation of United States Apparel Stores Industry: An Application of Panel Data Envelopment Analysis

This study examines the effect of firm financial efficiency on executive compensation with an emphasis on the US apparel industry. We find that both annual efficiency levels and cumulative efficiency changes obtained from the Data Envelopment Analysis (DEA) are positively associated with CEO pay. The effect is stronger for technological changes and changes in scale efficiency. Our results seem to support the pay-for-efficiency paradigm, a stricter version of the pay-for-performance framework under the efficient contracting explanation for CEO pay.

Contingency factors and reshoring drivers in the textile and apparel industry

PurposeThe purpose of this paper is to examine the relationship between contingency factors and reshoring drivers in the US textile and apparel industry.Design/methodology/approachSecondary data on the reshoring drivers and contingency factors for 140 US textile and apparel companies are analyzed using analysis of proportions.FindingsThe findings show that total annual revenue is significantly related to the reshoring driver of skilled workforce. No significant relationships are present between reshoring drivers and the region of the world reshored from not the region of the USA from which a company operates. There is a significant relationship between market segment and the reshoring driver of manufacturing process. The US production category (reshored, FDI, or kept from offshoring) exhibits a significant relationship with sustainability-related and cost-related reshoring drivers. Quality is a significant driver for reshoring from 2010 to 2016, although decreasing as a reported reason over that time period.Research limitations/implicationsLimitations include a focus on one industry, the lack of information to investigate the differences between companies making captive or outsourced reshoring decisions, and the use of companies who publicly announced reshoring.Practical implicationsThis study outlines the relationships between contingency factors and reshoring drivers. The results provide companies with information about resources that will be demand (e.g. skilled workers) as well as policies and regulations that may be developed to address concerns such as sustainability.Originality/valueThis study adds to the limited number of studies on the relationships between contingency factors and reshoring drivers and contributes to the quantitative research on reshoring drivers.

What Will Happen to the US Textile and Apparel Industry if the NAFTA Goes?

This study provides a quantitative evaluation of how the termination of the North American Free Trade Agreement (NAFTA) proposed by the Trump administration will affect the US textile and apparel (T&A) industry. By adopting the Global Trade Analysis Project (GTAP) computable general equilibrium model based on the GTAP9 database, the study finds that: first, the termination of NAFTA will significantly reduce US apparel imports from NAFTA members but lead to an increase of US apparel imports from Asian countries; second, ending NAFTA will substantially reduce US textile exports to the NAFTA region, which currently is the single largest export market for the US textile industry; and third, rather than encouraging more ‘Made in the USA’, the termination of NAFTA will reduce further the output of T&A manufacturing in the United States. The findings of this study augment our understanding of the potential economic impact of ending a major free trade agreement, which has been studied little, and shed new lights on the debate regarding the T&A-specific sectoral impact of NAFTA. The findings of the study also provide valuable inputs for policymakers regarding what should or should not be done with NAFTA from the perspective of the US T&A industry. JEL Classification: F14, F15, F17

Trade Liberalization, Rival Exporters and Reallocation of Production: An Analysis of Indian Manufacturing

AbstractEmploying a difference‐in‐difference estimation technique on firm‐level data on Indian exporters, we show that the removal of US textile and apparel quotas was associated with a relative increase in sales of products where India was previously quota restricted, but a relative decrease in sales and the unit value of products where China was previously quota restricted. Our study hence highlights the importance of accounting for falling trade barriers for rival exporters in analyzing trade liberalization effects. Additionally, we find evidence indicating that quota rights were not allocated efficiently, suggesting potential gains from reallocation with the dismantling of the Indian quota licensing regime.

Trying on the Future: Exploring Apparel Retail Employees’ Perspectives on Advanced In-Store Technologies

Technology use in apparel retail stores is on the rise and is changing the way that employees work and customers shop. In spite of increased use, advanced technology deployed within apparel retail stores has yet to match the rapid pace of growth for technologies adopted by apparel consumers enabled by mobile devices and sophisticated digital applications. The goal of this research was to explore the perspectives of apparel retail store employees on technology use and its relationship to effectively carrying out current and future (innovative) job responsibilities. Three technologies traditionally not found within US apparel retail stores, but emerging as part of the retail store environment, were examined by apparel retail employees in a lab setting. The technologies included a 3D body scanner, product configurator software, and social media. Seven themes emerged from the analysis and reflected how employees envisioned using these advanced technologies in their work. Themes included: (1) communication and relationship building, (2) creativity, (3) customization and personalization, (4) efficiency and accuracy, (5) engagement and experience, (6) fun and interest, and (7) sizing and fit. Concluding recommendations provide insights into how these themes could benefit the employee‒customer interaction, as well as offer direct benefits to employee job satisfaction, retailer profitability, and customer loyalty.

Impact of competitive strategy and cost-focus on global supplier switching (reshore and relocation) decisions

This study analyzes how global supplier switching decisions (reshore and relocate) are influenced by the buyers’ cost-focus and competitive strategies. Comprehensive survey data were gathered from US textile and apparel industry. The analysis revealed that the buyers with distinct competitive strategies such as Made-in-USA, speed-to-market are likely to have significantly higher proportions of reshoring activities. Furthermore, large companies and retailers are shown to be more cost-focused than small and manufacturing companies, respectively. Finally, cost-focused companies are shown to be more likely to switch their international suppliers. By analyzing the buyer side of supplier-switching and identifying the common features of companies engaging in reshoring or relocation, our analysis enables us to better interpret international supplier-switching. While other studies have regarded the superior performance of the prospective supplier or the external issues as the main factors, we emphasize the impact of internal dynamics of buyers on the international supplier-switching processes.

Supplier selection in small- and medium-sized firms

Purpose The purpose of this paper is to empirically examine supplier selection among small- and medium-sized firms in the US textile and apparel industry. For small- and medium-sized firms, one powerful method of improving the firm’s competitiveness in the dynamic business environment is through strategic approach of supplier selection, which emphasizes supplier’s contributions to the total product and to overall customer satisfaction. Design/methodology/approach Empirical survey-based research methodology was implemented and data were collected from small and medium firms in textile and apparel business in North Carolina, South Carolina, Georgia, California, and New York which are the major areas of the US textile and apparel industry. Findings This study demonstrates the supplier selection practices of the small- and medium-sized firms in the US textile and apparel industry and their perceptions of supply market and supplier evaluation systems. Results indicate that supplier selection criteria impact firm performance in different ways. Small- and medium-sized firms carry out supplier selection based on product quality, supplier responsiveness, and strategic consideration which positively impact overall customer service level and overall customer satisfaction. Originality/value This paper focuses on supply chain management practices, specifically the supplier selection issue in small- and medium-sized firms in the textile and apparel industry.

Impact of the Trans-Pacific Partnership (TPP) on US textile and apparel manufacturing

PurposeThis study aims to empirically investigate the potential impact of the Trans-Pacific Partnership (TPP) on US textile and apparel manufacturing.Design/methodology/approachThis study adopts the Global Trade Analysis Project (GTAP) computable general equilibrium model based on the latest GTAP9 database.FindingsThe findings of the study suggest that: the “yarn-forward” rule will not work effectively in the context of TPP; and the development of Vietnam’s local textile industry is a critical threat to the survival of US textile and apparel (T&A) manufacturing in the long run.Originality/valueThe findings of the study augment the understanding of the T&A-specific sectoral impact of TPP and address the particular concerns of the US T&A manufacturers with regard to the new business environment and the possible scenarios after the implementation of the agreement.