Manufacturing complexity and inter-firm coordination: evidence from the textile-exporting firms of Pakistan

Umar Burki and Arnt Buvik

International Journal of Procurement Management, 2017, vol. 10, issue 2, 227-247

Abstract: This study explores the concept of manufacturing complexity relating to textile fabrics and examines whether the interplay between manufacturing complexity and specific assets enforces inter-firm coordination in international textile procurement relationships. It also accentuates the role of turnkey suppliers in international value chains. The research findings demonstrate that the combined presence of manufacturing complexity and supplier held specific assets leads to higher inter-firm coordination that is crucial for achieving order compliance. Moreover, the results indicate that inter-firm coordination is highly effective in mitigating the prospect of opportunistic behaviour in international procurement relationships. By describing the vital procedural techniques and aesthetic features that are involved in manufacturing a textile fabric order, this study provides valuable insights about manufacturing complexity. Further, the empirical findings demonstrate that international buyers need closer coordination with their key suppliers to mitigate performance ambiguity regarding order compliance for complex customised products.

Keywords: manufacturing complexity; MAFC; textile fabrics; inter-firm coordination; turnkey suppliers; buyer-manufacturer relationships; order compliance; textile industry; Pakistan; exporting firms; procurement relationships; international value chains; key suppliers. (search for similar items in EconPapers)
Date: 2017
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