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

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.clothing industry, global production networks, capabilities

From Supply Chains to Total Product Systems

The evolution of supply chain management and practice has had an integral and expanding role in contemporary global economic and socio-political change over the past 25 years or so. Thi srole is moving closer to centre stage with the emergence of business models equating to 'total product systems'. The impacts of advanced supply chain practice include driving fundamental changes in approach to product design, the concept of 'product', production methods, distribution, marketing, aftermarket support and end-of-life (EOL) reprocessing. Viewed in their full context, methods in supply chain management (SCM) have major influences on societal functioning and on economic development at global, national and local levels. Even the supply chains for simple products can involve several different industries and link many companies, large and small. Those for complex products may span several technological domains and economic sectors, linking hundreds or sometimes thousands of companies

Electronic Reverse Auctions: Spawning Procurement Innovation in the Context of Arab Culture

Government e-procurement initiatives have the potential to transform local institutions, but few studies have been published of strategies for implementing specific e-procurement tools, particularly involving procurement by a foreign government adapting to local culture in the Middle East/North Africa (MENA). This case describes procurement at a forward operating base (FOB) in Kuwait in support of operations in Iraq. The government procurers had to deal with a phenomenon unique to the MENA region: wasta. Wasta is a form of social capital that bestows power, influence, and connection to those who possess it, similar to guanxi in China. This study explores the value proposition and limitations of electronic reverse auctions (eRA) with the purpose of sharing best practices and lessons learned for government procurement in a MENA country. The public value framework provides valuable theoretical insights for the implementation of a new government e-procurement tool in a foreign country. In a culture dominated by wasta, the suppliers enjoyed the transparency and merit-based virtues of eRA’s that transferred successfully into the new cultural milieu: potential to increase transparency, competition, efficiency, and taxpayer savings. The practices provided herein are designed specifically to help buyers overcome structural barriers including training, organizational inertia, and a lack of eRA policy and guidance while implementing a new e-procurement tool in a foreign country

Feeding Ourselves Thirsty: How the Food Sector is Managing Global Water Risks

The global food sector faces extraordinary risks from the twin challenges of water scarcity and water pollution. Growing competition for water, combined with weak regulations, failing infrastructure, pollution and climate change impacts threaten the sector's water security and contribute to a water availability emergency that was recently ranked the world's "top global risk" by the World Economic Forum.This report examines how water risks affect the profitability and competitive positioning of 37 major food sector companies in four industries: packaged food, beverage, meat and agricultural products. It evaluates and ranks these companies -- the majority of which are U.S. domiciled and publicly-traded -- on how well they are positioned to anticipate and mitigate these risks, as well as contribute to improved water resource management.The report provides recommendations for how analysts and investors can effectively evaluate food sector companies on their water risk exposure and management practices. It also provides recommendations for how food companies can improve water efficiency and water quality across their operations and supply chains to reduce risks and protect water resources

Efficacy of purchasing activities and strategic involvement: an international comparison

The purchasing function plays a strategic role in a company’s ability to compete. As globalization continues to increase, what becomes interesting is the effect that national culture may have on purchasing activities and, ultimately, manufacturing competitiveness. This study examines the effects of purchasing activities and the purchasing function’s involvement with corporate strategy on manufacturing competitiveness as it is affected by national differences. In particular, we are interested in the research question: Do purchasing theories built on samples from mainly North American and Western European countries apply in other countries with different cultural contexts? The statistical results provide evidence that the engagement and efficacy of purchasing activities and strategic involvement within companies vary by national culture. Moreover, a particular cultural dimension, Long-term orientation, is significantly related to the efficacy of purchasing activities and strategic involvement. This finding has important implications from the perspective of purchasing decision-making in global operations. Specifically, top managers from different nations could adopt and implement similar purchasing activities, but those activities could lead to different outcomes depending on the culture. The paper concludes by reviewing research limitations and suggests further examination of operations management theories

Buying bundles: the effects of bundle attributes on the value of bundling

We consider the situation in which a buyer has to find the optimal degree of bundling for buying goods and services. From a review of the literature we develop attributes associated with bundling. Each of these attributes has an effect on the value of a bundle. Combined, the attributes determine the value of a bundle. We describe how the various attributes of a bundle contribute to the value of a bundle given the context of the buying situation. Based on interviews, a further analysis of bundle attributes and their effects on the bundle value is provided. The results of this analysis can be used to assist in finding the optimal degree of bundling

Enforcing International Labor Rights through Corporate Codes of Conduct

This article first reviews initiatives by the international community to address the linkage between trade and international labor rights and fair labor standards through domestic trade statutes, regional trade agreements and other governmental approaches. It then examines several private sector efforts embracing codes of conduct for labor and employment practices in international commerce. Some are proposed by sources external to multinational corporations as codes by which they can pledge to abide. Others are initiated by individual companies themselves. The authors focus their treatment on codes of conduct issued by Levi Strauss &. Co. and Reebok Corporation as examples of the challenges in formulating, auditing and enforcing labor rights and labor standards by private corporations engaged in international trade