Toward a Bipolar Apparel GVC? From the Perspective of First-Tier Suppliers

Hyunji Kwon (), Jinsun Bae (), Joonkoo Lee () and Sun Wook Chung ()
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Hyunji Kwon: Seoul National University
Jinsun Bae: Carleton University
Joonkoo Lee: Hanyang University
Sun Wook Chung: Sogang University

A chapter in Knitting Asia, Weaving Development, 2023, pp 81-104 from Springer

Abstract: Abstract This case study of a Korea-based apparel first-tier supplier hypothetically examined the evolution of Global Value Chains (GVCs) toward a bipolar governance structure in the apparel industry, a stronghold of lead firm dominant and unipolar chain. It also hypothesized that strategic suppliers’ emergence is a necessary condition for the governance transformation toward bipolarity. Company K provides a compelling case to corroborate this hypothesis as it fulfilled a wide array of value chain functions that encourage buyers to form collaborative relationships with them. Our single case study provides a multi-level analysis of how the bipolarity has emerged (global, industry-level, and organizational-level). Its unique contribution to the germane literature is the articulation of organizational strategies that these suppliers undertook to stay cost-competitive while building capability. Supplier upgrading tends to focus on capability building with less regard to how they manage their human resources and ways of working. In this study, we give due attention to organizational changes these first-tier suppliers undertake to secure and improve their positions within GVCs, which holds useful managerial insight for emerging MNEs hoping to do the same.

Keywords: Apparel GVCs; Korea; First-tier supplier; Strategic supplier; GVC governance; Bipolar governance structure (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-99-3764-6_4

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DOI: 10.1007/978-981-99-3764-6_4

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