[go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v53y2021i4p763-784.html
   My bibliography  Save this article

Local supplier firms in Madagascar’s apparel export industry: Upgrading paths, transnational social relations and regional production networks

Author

Listed:
  • Lindsay Whitfield

    (6976Roskilde University, Denmark)

  • Cornelia Staritz
Abstract
This article asks whether and how local firms in low-income countries can participate, upgrade and capture value in apparel global value chains in the context of increased entry barriers and asymmetric power relations. It focuses on Madagascar, which is the top apparel exporter in Sub-Saharan Africa and one where there is a significant number of local firms. The article examines the capability-building processes of local firms, which are the basis for upgrading paths and broader sector development. We do this by combining conceptual insights from the Technological Capabilities literature with the conjunctural approach to Global Value Chains and Global Production Networks. Based on extensive fieldwork in Madagascar’s apparel export sector, the article explains how the relational, local and regional assets that local firms can leverage in building technological capabilities influence their choices with regards to export strategies and their upgrading paths. In turn, these assets are linked to different types of local ownership, and they emerge through historical legacies and the national socio-economic context, which give rise to specific transnational social relations, as well as through regional economic formations and global value chain dynamics.

Suggested Citation

  • Lindsay Whitfield & Cornelia Staritz, 2021. "Local supplier firms in Madagascar’s apparel export industry: Upgrading paths, transnational social relations and regional production networks," Environment and Planning A, , vol. 53(4), pages 763-784, June.
  • Handle: RePEc:sae:envira:v:53:y:2021:i:4:p:763-784
    DOI: 10.1177/0308518X20961105
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0308518X20961105
    Download Restriction: no

    File URL: https://libkey.io/10.1177/0308518X20961105?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Palpacuer, Florence & Gibbon, Peter & Thomsen, Lotte, 2005. "New Challenges for Developing Country Suppliers in Global Clothing Chains: A Comparative European Perspective," World Development, Elsevier, vol. 33(3), pages 409-430, March.
    2. Cornelia Staritz, 2011. "Making the Cut? Low-Income Countries and the Global Clothing Value Chain in a Post-Quota and Post-Crisis World," World Bank Publications - Books, The World Bank Group, number 2547.
    3. Elena Baglioni & Liam Campling & Gerard Hanlon, 2020. "Global value chains as entrepreneurial capture: insights from management theory," Review of International Political Economy, Taylor & Francis Journals, vol. 27(4), pages 903-925, July.
    4. Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February.
    5. Giuliani, Elisa & Pietrobelli, Carlo & Rabellotti, Roberta, 2005. "Upgrading in Global Value Chains: Lessons from Latin American Clusters," World Development, Elsevier, vol. 33(4), pages 549-573, April.
    6. Joseph E. Stiglitz & Justin Lin Yifu & Ebrahim Patel (ed.), 2013. "The Industrial Policy Revolution II," International Economic Association Series, Palgrave Macmillan, number 978-1-137-33523-4, December.
    7. Coe, Neil M. & Yeung, Henry Wai-chung, 2015. "Global Production Networks: Theorizing Economic Development in an Interconnected World," OUP Catalogue, Oxford University Press, number 9780198703914.
    8. Mushtaq H. Khan, 2013. "Political Settlements and the Design of Technology Policy," International Economic Association Series, in: Joseph E. Stiglitz & Justin Lin Yifu & Ebrahim Patel (ed.), The Industrial Policy Revolution II, chapter 4, pages 243-280, Palgrave Macmillan.
    9. Phelps, Nicholas A. & Stillwell, John C.H. & Wanjiru, Roseline, 2009. "Broken Chain? AGOA and Foreign Direct Investment in the Kenyan Clothing Industry," World Development, Elsevier, vol. 37(2), pages 314-325, February.
    10. John Pickles & Adrian Smith & Milan Bucěk & Poli Roukova & Robert Begg, 2006. "Upgrading, Changing Competitive Pressures, and Diverse Practices in the East and Central European Apparel Industry," Environment and Planning A, , vol. 38(12), pages 2305-2324, December.
    11. Joseph E. Stiglitz & Justin Yifu Lin (ed.), 2013. "The Industrial Policy Revolution I," International Economic Association Series, Palgrave Macmillan, number 978-1-137-33517-3, December.
    12. Frederick H Abernathy & Anthony Volpe & David Weil, 2006. "The Future of the Apparel and Textile Industries: Prospects and Choices for Public and Private Actors," Environment and Planning A, , vol. 38(12), pages 2207-2232, December.
    13. Cling, Jean-Pierre & Razafindrakoto, Mireille & Roubaud, Francois, 2005. "Export processing zones in Madagascar: a success story under threat?," World Development, Elsevier, vol. 33(5), pages 785-803, May.
    14. Sanjaya Lall, 1996. "Learning from the Asian Tigers," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-38989-2, March.
    15. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    16. Matthew C. Mahutga, 2014. "Global models of networked organization, the positional power of nations and economic development," Review of International Political Economy, Taylor & Francis Journals, vol. 21(1), pages 157-194, February.
    17. Lamusse R., 1989. "Adjustment to structural change in manufacturing in a north-south perspective: the case of the clothing export sector in Mauritius," ILO Working Papers 992715803402676, International Labour Organization.
    18. Azmeh, Shamel & Nadvi, Khalid, 2014. "Asian firms and the restructuring of global value chains," LSE Research Online Documents on Economics 56666, London School of Economics and Political Science, LSE Library.
    19. Azmeh, Shamel & Nadvi, Khalid, 2014. "Asian firms and the restructuring of global value chains," International Business Review, Elsevier, vol. 23(4), pages 708-717.
    20. repec:ilo:ilowps:271580 is not listed on IDEAS
    21. Mike Morris & Cornelia Staritz & Justin Barnes, 2011. "Value chain dynamics, local embeddedness, and upgrading in the clothing sectors of Lesotho and Swaziland," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 4(1/2/3), pages 96-119.
    22. Khan, Mushtaq H., 2019. "Knowledge, skills and organizational capabilities for structural transformation," Structural Change and Economic Dynamics, Elsevier, vol. 48(C), pages 42-52.
    23. Jennifer Bair & Marion Werner, 2011. "Commodity Chains and the Uneven Geographies of Global Capitalism: A Disarticulations Perspective," Environment and Planning A, , vol. 43(5), pages 988-997, May.
    24. Razafindrakoto,Mireille & Roubaud,François & Wachsberger,Jean-Michel, 2020. "Puzzle and Paradox," Cambridge Books, Cambridge University Press, number 9781108488334, September.
    25. Morris, Mike & Staritz, Cornelia, 2014. "Industrialization Trajectories in Madagascar’s Export Apparel Industry: Ownership, Embeddedness, Markets, and Upgrading," World Development, Elsevier, vol. 56(C), pages 243-257.
    26. Lindsay Whitfield & Cornelia Staritz & Mike Morris, 2020. "Global Value Chains, Industrial Policy and Economic Upgrading in Ethiopia's Apparel Sector," Development and Change, International Institute of Social Studies, vol. 51(4), pages 1018-1043, July.
    27. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lindsay Whitfield & Cornelia Staritz & Mike Morris, 2020. "Global Value Chains, Industrial Policy and Economic Upgrading in Ethiopia's Apparel Sector," Development and Change, International Institute of Social Studies, vol. 51(4), pages 1018-1043, July.
    2. Cuervo-Cazurra, Alvaro & Pananond, Pavida, 2023. "The rise of emerging market lead firms in global value chains," Journal of Business Research, Elsevier, vol. 154(C).
    3. Pauline Debanes, 2018. "Modes of Insertion into Global Value Chains as a Source of Firms' Heterogeneity?," Working Papers halshs-01849224, HAL.
    4. Sithanonxay Suvannaphakdy & Alisa DiCaprio, 2021. "Are Asian least developed countries sidelined in advanced manufacturing production networks?," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 35(1), pages 134-152, May.
    5. Islam, Mohammad Tarikul & Polonsky, Michael Jay, 2020. "Validating scales for economic upgrading in global value chains and assessing the impact of upgrading on supplier firms’ performance," Journal of Business Research, Elsevier, vol. 110(C), pages 144-159.
    6. McWilliam, Sarah E. & Kim, Jung Kwan & Mudambi, Ram & Nielsen, Bo Bernhard, 2020. "Global value chain governance: Intersections with international business," Journal of World Business, Elsevier, vol. 55(4).
    7. Cornelia Staritz & Mike Morris, 2013. "Local embeddedness and economic and social upgrading in Madagascar’s export apparel industry," Global Development Institute Working Paper Series ctg-2013-21, GDI, The University of Manchester.
    8. Staritz, Cornelia & Frederick, Stacey, 2016. "Harnessing foreign direct investment for local development? Spillovers in apparel global value chains in sub-Saharan Africa," Working Papers 59, Austrian Foundation for Development Research (ÖFSE).
    9. Mahmudul Hasan Fouji & Imranul Hoque, 2021. "Supplier Internationalization Through Upgrading in Global Supply Chain: Evidence from the Garments Industry of Bangladesh," International Journal of Global Business and Competitiveness, Springer, vol. 16(2), pages 116-129, December.
    10. Liena Kano & Eric W. K. Tsang & Henry Wai-chung Yeung, 2020. "Global value chains: A review of the multi-disciplinary literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 577-622, June.
    11. Staritz, Cornelia & Morris, Mike, 2012. "Local embeddedness, upgrading, and skill development: Global value chains and foreign direct investment in Lesotho's apparel industry," Working Papers 32, Austrian Foundation for Development Research (ÖFSE).
    12. Staritz, Cornelia, 2012. "Apparel exports - still a path for industrial development? Dynamics in apparel global value chains and implications for low-income countries," Working Papers 34, Austrian Foundation for Development Research (ÖFSE).
    13. Linda Calabrese & Neil Balchin, 2022. "Foreign Investment and Upgrading in the Garment Sector in Africa and Asia," Global Policy, London School of Economics and Political Science, vol. 13(S1), pages 34-44, April.
    14. Morris, Mike & Staritz, Cornelia, 2014. "Industrialization Trajectories in Madagascar’s Export Apparel Industry: Ownership, Embeddedness, Markets, and Upgrading," World Development, Elsevier, vol. 56(C), pages 243-257.
    15. Azmeh, Shamel, 2015. "Transient global value chains and preferential trade agreements: rules of origin in US trade agreements with Jordan and Egypt," LSE Research Online Documents on Economics 64601, London School of Economics and Political Science, LSE Library.
    16. Rory Horner, 2022. "Global value chains, import orientation, and the state: South Africa’s pharmaceutical industry," Journal of International Business Policy, Palgrave Macmillan, vol. 5(1), pages 68-87, March.
    17. Mike Morris & Leonhard Plank & Cornelia Staritz, 2016. "Regionalism, end markets and ownership matter: Shifting dynamics in the apparel export industry in Sub Saharan Africa," Environment and Planning A, , vol. 48(7), pages 1244-1265, July.
    18. Azmeh, Shamel & Nadvi, Khalid, 2014. "Asian firms and the restructuring of global value chains," International Business Review, Elsevier, vol. 23(4), pages 708-717.
    19. Alexandre Berthe & Pascal Grouiez, 2020. "Small Farm Upgrading in GVC: a Strategic Perspective," Working Papers halshs-02953123, HAL.
    20. Saon Ray & Smita Miglani, 2020. "India's GVC integration: An analysis of upgrading efforts and facilitation of lead firms," Indian Council for Research on International Economic Relations (ICRIER) Working Paper 386, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envira:v:53:y:2021:i:4:p:763-784. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.