Toward a Bipolar Apparel GVC? From the Perspective of First-Tier Suppliers*open access
- Authors
- Kwon, Hyunji; Bae, Jinsun; Lee, Joonkoo; Chung, Sun Wook
- Issue Date
- Mar-2021
- Publisher
- Institute of Social Development and Policy Research, Seoul National University
- Keywords
- Apparel GVCs; Bi-polar governance structure; First-tier supplier; GVC governance; Korea; Strategic supplier
- Citation
- Journal of Asian Sociology, v.50, no.1, pp.9 - 32
- Indexed
- SCOPUS
KCI
- Journal Title
- Journal of Asian Sociology
- Volume
- 50
- Number
- 1
- Start Page
- 9
- End Page
- 32
- URI
- https://scholarworks.bwise.kr/hanyang/handle/2021.sw.hanyang/1311
- DOI
- 10.21588/dns.2021.50.1.002
- ISSN
- 2671-4574
- Abstract
- This case study of a Korea-based apparel first-tier supplier examined the evolution of Global Value Chains (GVCs) toward a bi-polar governance structure in the apparel industry, a stronghold of lead-firm dominant and uni-polar chain. It also hypothesized that strategic suppliers' emergence is a necessary condition for the governance transformation towards bipolarity. Company K provides a compelling case to corroborate this hypothesis as it fulfilled a wide array of value chain functions that encourage buyers to form collaborative relationships with them. Our single case study provides a multi-level analysis of how the bi-polarity has emerged (global, industry-level and organizational-level). Its unique contribution to the germane literature is the articulation of organizational strategies that these suppliers undertook to stay cost-competitive while building capability. Supplier upgrading tends to focus on capability building with less regard to how they manage their human resources and ways of working. In this study, we give due attention to organizational changes these first-tier suppliers undertake to secure and improve their positions within GVCs, which holds useful managerial insight for emerging MNEs hoping to do the same.
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