Authors: Tam, F.Y.; Moon, K.L.; Ng, S.F.; Hui, C.L.

Source: Journal of Fashion Marketing and Management, Volume 11, Number 2, 2007 , pp. 297-306(10)

Publisher: Emerald Group Publishing Limited

Abstract:

<B>Purpose</B> - The main purpose of this paper is to compare the differences between the small and medium-sized enterprises (SMEs) and the large enterprises (LEs) of the Hong Kong clothing industry in terms of the adoption of production sourcing strategies and buyer-supplier relationships. <B>Design/methodology/approach</B> - A questionnaire survey was conducted among 120 small to large-sized clothing firms in Hong Kong. <B>Findings</B> - The results show that there were certain differences between SMEs and LEs with regard to production sourcing: LEs are more able to disperse production globally; LEs are more likely to adopt single sourcing, while SMEs prefer multiple sourcing; SMEs tend to use a combined strategy of in- and outsourcing, whereas LEs select either insourcing or outsourcing; and LEs are more likely to develop a formal strategic alliance with their trading partners. <B>Research limitations/implications</B> - The adoption of sourcing strategies and buyer-supplier relationships may change over time: future research should also be directed towards collecting longitudinal data. <B>Practical implications</B> - To compete with LEs, SMEs have to ally strategically with their trading partners. Adopting sourcing strategies in a more cooperative manner is therefore imperative. Nonetheless, both SMEs and LEs should exploit their advantages by adopting proper or innovative combinations of sourcing strategies and buyer-supplier relationships, and hence their respective disadvantages can be offset and their competitive advantages can be enhanced. <B>Originality/value</B> - This paper examines the differences between SMEs and LEs in the adoption of production sourcing strategies and buyer-supplier relationships. This study provides an implication for the management of SMEs and LEs in terms of production sourcing.

Keywords: Buyer-seller relationships; Garment industry; Hong Kong; Large enterprises; Small to medium-sized enterprises; Sourcing

Document Type: Research article

DOI: http://dx.doi.org/10.1108/13612020710751446

Publication date: 2007-05-15

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