Domestic capabilities and global production networks in the clothing industry: a comparison of German and UK firms' strategies

Christel Lane and Jocelyn Probert

Working Papers from Centre for Business Research, University of Cambridge

Abstract: In this paper we examine the sourcing strategies of clothing firms in the developed economies of the UK and Germany in the context of their national institutional framework. We argue that, as a result of their embeddedness in divergent national structures, these firms pursue different sourcing strategies and make different locational choices. We place particular emphasis on the different mix of armsÕ length and relational contracting that firms develop, and on the divergent degree of control over the manufacturing process and the product that they retain. We suggest that the construction of global production networks and control over supplier firms is mediated by co-ordinating firmsÕ product strategy and the degree of dependence on national retailers this engenders. In the UK and Germany, firms and their networks differ from the US case which is normally taken as representative of the industry.

Keywords: clothing industry; global production networks; capabilities (search for similar items in EconPapers)
JEL-codes: J2 L22 L23 L67 (search for similar items in EconPapers)
Date: 2005-12
New Economics Papers: this item is included in nep-cse, nep-mkt and nep-tid
Note: PRO-1
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:cbr:cbrwps:wp318

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