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Evaluating offshore and domestic production in the apparel industry: The small firm’s perspective

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Abstract

This paper extends the existing literature on the potential advantages and drawbacks of domestic and offshore manufacturing strategies to a small firm perspective. The advantages of offshore production to the large corporation have received much attention in recent years, particularly with regards to the apparel industry. The key advantages of offshore production are obvious for the large firm: cost reductions and increased productivity through labour market differentials. Little is known however about the viability and attractiveness of this strategy for the small apparel firm. The high number of small apparel firms who continue to produce in their domestic market, despite labour market differentials, suggests that the cost advantages of producing offshore may not be as critical for the competitive advantage of many of these small firms. Four case studies of small New Zealand apparel firms are used to substantiate and expand on themes developed from the literature.

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Notes

  1. Over the past 35 years, the percentage of world garment exports accounted for by LDCS and NICs has increased from around 25% in 1972 to 70% by 2005 (United Nations 1976–2006/07).

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  1. University of Canterbury, Private Bag 4800, Christchurch, New Zealand

    Leo Paul Dana, Robert T. Hamilton & Brooke Pauwels

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  1. Leo Paul Dana
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  2. Robert T. Hamilton
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  3. Brooke Pauwels
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Correspondence to Leo Paul Dana.

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Dana, L.P., Hamilton, R.T. & Pauwels, B. Evaluating offshore and domestic production in the apparel industry: The small firm’s perspective. J Int Entrepr 5, 47–63 (2007). https://doi.org/10.1007/s10843-007-0015-1

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  • DOI: https://doi.org/10.1007/s10843-007-0015-1

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