Skip to main content

Supply Network Structures and SMEs: Evidence from the International Clothing Industry

  • Chapter
  • First Online:
Managing Cooperation in Supply Network Structures and Small or Medium-sized Enterprises

Abstract

Many different types of supply networks have been discussed in the literature. However, their relevance for SMEs has not been discussed in detail. This chapter briefly reviews supply network typologies and their relevance for SMEs. Analysis is presented of supply networks in the international clothing industry that has emerged over the last three decades to supply garments to global markets. Such networks include highly powerful entities such as major retailers as well as many smaller players. They operate with different structures and different operational strategies, and practices. The chapter considers the operation of these networks and their implication for SMEs. Sri Lankan clothing manufacturers operating within retail-driven international supply networks are described. The role of SMEs and how they collaborate with larger players in these dynamic networks are discussed. The chapter concludes with policy implications for government authorities and the business community. Important research directions are highlighted for the academic community.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

eBook
USD 16.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 129.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • R.S. Achrol, P. Kolter, Marketing in the network economy. J. Market. 63, 146–163 (1999) (special issue)

    Article  Google Scholar 

  • D. Audet, Smooth as silk? A first look at the post MFA textiles and Clothing landscape. J. Int. Econ. Law 10(2), 267–284 (2007)

    Article  Google Scholar 

  • CBARSL—Central Bank Annual Report Sri Lanka (2006/2007/2009)

    Google Scholar 

  • S.K. Cheng, B.H. Kam, A conceptual framework for analysing risk in the supply networks. J. Enterp. Inf. Manag. 22(4), 345–360 (2008)

    Google Scholar 

  • M. Christopher, Logistics and Supply Chain Management: Creating Value-Adding Networks, 3rd edn. (Prentice Hall, 2005)

    Google Scholar 

  • A. Cox, J. Sanderson, G. Watson, Supply chains and power regimes: toward an analytic framework for managing extended networks of buyer and supplier relationships. J. Supply Chain Manag. 37(2), 28–35 (2001)

    Article  Google Scholar 

  • D.W. Cravens, N.F. Piercy, S.H. Shipp, New Organizational forms for competing in highly dynamic environments: the network paradigm. Br. J. Manag. 7, 203–218 (1996)

    Article  Google Scholar 

  • R. Ernst, B. Kamrad, Evaluation of supply chain structures through modularization and postponement. Eur. J. Oper. Res. 124, 495–510 (2000)

    Article  MATH  Google Scholar 

  • A.C. Garavelli, Flexibility configurations for the supply chain management. Int. J. Prod. Econ. 85, 141–153 (2003)

    Article  Google Scholar 

  • G. Gereffi, International trade and industrial upgrading in the apparel commodity chain. J. Int. Econ. 48(1), 37–70 (1999)

    Article  Google Scholar 

  • A. Grandori, G. Soda, Iner-Firm Networks: Antecedents, Mechanisms and Forms. Organ. Stud. 16(2), 183–214 (1995)

    Article  Google Scholar 

  • C.M. Harland, Supply chain management relationships chains and networks. Br. J. Manag. 7, S63–S81 (1996)

    Article  Google Scholar 

  • C.M. Harland, L.A. Knight, Supply network strategy: role and competence requirements. Int. J. Oper. Prod. Manag. 27(4), 476–489 (2001)

    Article  Google Scholar 

  • C.M. Harland, R.C. Lamming, J. Zheng, T.E. Johnsen, A taxonomy of supply networks. J. Supply Chain Manag. 37(7), 21–27 (2001)

    Article  Google Scholar 

  • C. Harland, J. Zheng, T. Johnsen, R. Lamming, A conceptual model for researching the creation and operation of supply networks. Br. J. Manag. 15, 1–2 (2004)

    Article  Google Scholar 

  • H.H. Hinterhuber, B.M. Levin, Strategic networks—the organization of the future. Long Range Plan. 27(3), 43–53 (1994)

    Article  Google Scholar 

  • M. Holweg, J. Holmstrom, J. Smaros, Supply chain collaboration: making sense of the strategy continuum. Eur. Manag. J. 23(2), 170–181 (2005)

    Article  Google Scholar 

  • R. Lamming, T. Johnson, J. Zheng, C. Harland, An initial classification of supply networks. Int. J. Oper. Prod. Manag. 20(6), 675–691 (2000)

    Article  Google Scholar 

  • H.L. Lee, Aligning supply chain strategies with product uncertainties. Calif. Manag. Rev. Repr. Ser. 44(6), 106–119 (2002)

    Google Scholar 

  • B.L. MacCarthy, P.G.S.A. Jayarathne, in Fast fashion: achieving global quick response (GQR) in the internationally dispersed clothing industry, ed. by E. Cheng, J. Choi. Springer Handbook on Innovative Quick Response Programs in Logistics and Supply Chain, Chapter 3 (Springer, 2010a)

    Google Scholar 

  • B.L. MacCarthy, P.G.S.A. Jayarathne, Network structures in the international clothing industry, PRO-VE 2010–11th IFIP Working Conference on virtual enterprises, Saint-Etienne, France, 11–13 Oct 2010 (2010b)

    Google Scholar 

  • M.F. Martin, US clothing and textile trade with china and the world: trends since the end of quotas. CRS report for congress, A report prepared for members and committees of congress on July 10 2007. Order Code RL34106. http://www.fas.org/sgp/crs/row/RL34106.pdf Accessed 18 Oct 2008

  • G. Nassimbeni, Network structures and co-ordination mechanisms: a taxonomy. Int. J. Oper. Prod. Manag. 18(6), 538–554 (1998)

    Article  Google Scholar 

  • K. Provan, P. Kenis Modes of network governance: structure, management, and effectiveness. J. Public Admin. Res. Theory. (2007). Accessed 5 Feb 2010

    Google Scholar 

  • P.L. Robertson, R.N. Langlois, Innovation, networks, and vertical integration. Res. Policy 24, 543–562 (1995)

    Article  Google Scholar 

  • S.A. Rosenfeld, Does cooperation enhance competitiveness? Assessing the impacts of inter-firm collaboration. Res. Policy 25, 247–263 (1996)

    Article  Google Scholar 

  • A. Sen, The US fashion industry: a supply chain review. Int. J. Prod. Econ. 114(2), 571–593 (2008)

    Article  Google Scholar 

  • N. Tokatli, Global sourcing: insights from the global clothing industry—the case of Zara, a fast fashion retailer. J. Econ. Geogr. (Oxford University Press, 2007) http://joeg.oxfordjournals.org/content/8/1/21.full.pdf+html Accessed Oct 23

  • D. Tyler, J. Heeley, T. Bhamra, Supply chain influences on new product development in fashion clothing. J. Fash. Market. Manag. 10(3), 316–328 (2006)

    Article  Google Scholar 

  • UNCTAD, Current Studies on FDI and Development, TNCs and the removal of textiles and clothing quotas, United Nations, New York and Geneva (2005) http://www.unctad.org/en/docs/iteiia20051_en.pdf. Accessed 2 Nov 2008

  • E. Verwaal, M. Hesselmans, Drivers of supply network governance: an explorative study of the Dutch chemical industry. Eur. Manag. J. 22(4), 442–451 (2004)

    Article  Google Scholar 

  • S. Wadhwa, A. Saxenay, F.T.S. Chanz, Framework for flexibility in dynamic supply chain management. Int. J. Prod. Res. 46(6), 1373–1404 (2008)

    Article  MATH  Google Scholar 

  • J. Wijayasiri, J. Dissanayaka, Trade and Innovation Project, Case Study 3: the ending of the Multi-Fibre Agreement and Innovation in Sri Lanka Textile and Apparel Industry. OECD Trade Policy Working Paper No. 75 (2008)

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to B. L. MacCarthy .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2011 Springer-Verlag London Limited

About this chapter

Cite this chapter

MacCarthy, B.L., Jayarathne, P.G.S.A. (2011). Supply Network Structures and SMEs: Evidence from the International Clothing Industry. In: Villa, A. (eds) Managing Cooperation in Supply Network Structures and Small or Medium-sized Enterprises. Springer, London. https://doi.org/10.1007/978-0-85729-363-3_5

Download citation

  • DOI: https://doi.org/10.1007/978-0-85729-363-3_5

  • Published:

  • Publisher Name: Springer, London

  • Print ISBN: 978-0-85729-242-1

  • Online ISBN: 978-0-85729-363-3

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics