INVESTIGATION OF THE COMPETITIVENESS OF A TEXTILE AND APPAREL MANUFACTURER ...

335 Pages·2013·4.22 MB·English

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INVESTIGATION OF THE COMPETITIVENESS OF A TEXTILE
AND APPAREL MANUFACTURER: A CASE STUDY IN TAIWAN

A thesis submitted to the University of Manchester for the degree of

Doctor of Philosophy

In the Faculty of Engineering and Physical Science

2013

WenYing, Claire Shih

School of Materials
List of Tables .......................................................................................................................... 7
List of Figures ........................................................................................................................ 8
Abstract ................................................................................................................................ 10
Declaration ........................................................................................................................... 11
Copyright Statement ............................................................................................................ 12
Acknowledgements .............................................................................................................. 13
Chapter 1 Introduction ......................................................................................................... 14
1.1 Research context .................................................................................................... 14
1.2 Research aim and objectives .................................................................................. 16
1.3 Thesis structure ...................................................................................................... 17
Chapter 2 Recent Developments and Challenges in the Evolution of Textile and Apparel
Manufacturers ...................................................................................................................... 20
2.1 The background of the textile and apparel industries ............................................ 20
2.2 Textile and apparel industrial development and its impacts on manufacturers ..... 22
2.2.1 The change of market demand .................................................................... 22
2.2.2 Global value chains ..................................................................................... 24
2.2.3 Technological advancements ...................................................................... 29
2.2.4 Trade agreements and the post quota era .................................................... 30
2.3 The development of the T&A manufacturers in Taiwan ........................................ 35
2.3.1 The first generation of the NICs in Asia ..................................................... 35
2.3.2 The competitiveness of Taiwanese T&A manufacturers ............................ 38
2.4 Summary ................................................................................................................ 42
Chapter 3 Literature Review ................................................................................................ 44
3.1 Strategic management theories .............................................................................. 44
3.1.1 Industry perspective .................................................................................... 45
3.1.2 Transaction cost theory ............................................................................... 48
3.1.3 Resource-based view .................................................................................. 50
3.2 Supply (chain) management .................................................................................. 54
3.2.1 The definition of supply (chain) management ............................................ 54
3.2.2 The development of supply (chain) management ....................................... 55
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3.2.3 Partnering relationships .............................................................................. 57
3.2.3.1 Network sourcing and network resources ........................................ 59
3.2.3.2 Strategic alliances ............................................................................ 60
3.2.4 Supply options for partnering relationships ................................................ 64
3.3 New product development ..................................................................................... 66
3.3.1 Introduction ................................................................................................. 66
3.3.2 Textile and apparel NPD ............................................................................. 67
3.3.3 The determinants of NPD success .............................................................. 69
3.3.3.1 NPD process .................................................................................... 70
3.3.3.2 Strategic factors ............................................................................... 76
3.3.3.3 Management factors ......................................................................... 86
3.4 Research framework .............................................................................................. 90
3.5 Summary ................................................................................................................ 97
Chapter 4 Research Methodology ........................................................................................ 98
4.1 Introduction ............................................................................................................ 98
4.2 Research paradigms ............................................................................................... 99
4.2.1 Research approach- qualitative and quantitative approaches ................... 102
4.2.2 The methods of data collection ................................................................. 103
4.2.3 Research reliability and validity ............................................................... 104
4.3 Research design ................................................................................................... 106
4.3.1 Case study approach ................................................................................. 107
4.3.2 Single or multiple case studies? ................................................................ 108
4.3.3 New Wide Group as the case study .......................................................... 109
4.4 The case study protocol ....................................................................................... 110
4.4.1 Gaining access .......................................................................................... 111
4.4.2 Pilot case study ......................................................................................... 112
4.4.3 Data collection of case study .................................................................... 113
4.4.3.1 Secondary data -documentation ..................................................... 114
4.4.3.2 Primary data- interviews ................................................................ 114
4.4.3.3 Primary data -observation .............................................................. 118
4.4.4 Interview transcription and further contacts ............................................. 119
4.5 Data analysis ........................................................................................................ 120
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4.5.1 Data coding ............................................................................................... 122
4.5.2 Integrated definition for function modelling (IDEF0) .............................. 124
4.6 Reliability and validity of case study research .................................................... 126
4.7 Summary .............................................................................................................. 127
Chapter 5 The Case Study.................................................................................................. 128
5.1 The pilot case study: Canterbury of New Zealand............................................... 128
5.1.1 The introduction ........................................................................................ 128
5.1.2 The background ........................................................................................ 128
5.1.3 Product development ................................................................................ 131
5.1.3.1 Market research .............................................................................. 132
5.1.3.2 Design brief meeting ...................................................................... 133
5.1.3.3 Product adoption meetings ............................................................. 134
5.1.3.4 Manufacturing phase ...................................................................... 136
5.1.3.5 Product launching .......................................................................... 138
5.1.4 Business relationships and strategies ........................................................ 139
5.1.5 Emerging themes ...................................................................................... 142
5.1.6 Amendments to interview schedule .......................................................... 145
5.2 New Wide Group ................................................................................................. 146
5.2.1 Introduction ............................................................................................... 146
5.2.2 Company background ............................................................................... 149
5.2.2.1 Company profile and history ......................................................... 149
5.2.2.2 Company structure ......................................................................... 150
5.2.2.3 Competitors and market shares ...................................................... 154
5.2.2.4 Product offerings and target buyers ............................................... 156
5.2.3 Company dynamics ................................................................................... 157
5.2.3.1 Business goal ................................................................................. 157
5.2.3.2 Business development .................................................................... 158
5.2.3.3 Business risks ................................................................................. 164
5.2.4 New Wide’s new product development .................................................... 165
5.2.4.1 Fabric development and its process ............................................... 165
5.2.4.2 Apparel NPD and its process ......................................................... 178
5.2.5 J. J.’s Mae. Inc. (Rainbeau) ....................................................................... 184
5.2.5.1 The background and development of business .............................. 184
5.2.5.2 Target Market ................................................................................. 186
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5.2.5.3 The NPD and its process of J.J. Mae. Inc. ..................................... 186
5.2.6 Key factors of competitiveness deriving from NPD ................................. 195
5.2.6.1 The knowledge and experience of NPD ........................................ 196
5.2.6.2 Internal management of NPD ........................................................ 200
5.2.6.3 The management of New Wide’s sales teams ................................ 200
5.2.6.4 The management of IT ................................................................... 204
5.3 Summary .............................................................................................................. 205
Chapter 6 Analysis and Discussion .................................................................................... 206
6.1 Introduction .......................................................................................................... 206
6.2 Strategic positioning and required resources ....................................................... 206
6.3 The NPD process ................................................................................................. 209
6.3.1 The analysis of NW’s NPD process .......................................................... 211
6.3.2 Textile and apparel NPD integration ......................................................... 252
6.4 Product innovation and technological development ............................................ 256
6.5 Marketing factors ................................................................................................. 264
6.6 NPD Management ................................................................................................ 268
6.6.1 Top/senior managers ................................................................................. 268
6.6.2 The management of NPD teams ............................................................... 271
6.7 NPD collaboration and partnering relationships .................................................. 275
6.7.1 Supply (chain) management ..................................................................... 275
6.7.2 Strategic network ...................................................................................... 280
6.7.3 Strategic alliances ..................................................................................... 282
6.7.4 Supply options of partnering relationships ............................................... 286
6.8 Summary .............................................................................................................. 289
Chapter 7 Conclusion ......................................................................................................... 290
7.1 Introduction .......................................................................................................... 290
7.1.1 To identify the resources/capabilities/knowledge deriving from the NPD
process of the T&A manufacturer in Taiwan that can lead to competitive
advantages .......................................................................................................... 290
7.1.2 To investigate how the T&A manufacturer in Taiwan generates competitive
advantages through innovation/technological capabilities, marketing factors,
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internal management, and strategic collaboration in the context of NPD ......... 292
7.1.3 To identify the key competitive strategies that the manufacturer in Taiwan
has adopted in order to sustain competitiveness in the global T&A industries . 295
7.2 Research implications .......................................................................................... 296
7.3 Research limitations and further investigation .................................................... 298
Appendix i The first questionnaires for the interview ............................................... 302
Appendix ii Markup pilot interview questionnaires ................................................ 306
Appendix iii Interview questionnaires for Rainbeau ............................................... 309
Appendix iv Further interview questionnaires for New Wide ................................. 312
References .......................................................................................................................... 313

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List of Tables
Table 2.1 Industrial upgrading ............................................................................. 27
Table 2.2 The competitiveness of the T&A manufacturers in Taiwan ................. 42
Table 3.1 Inimitable resources and their contexts ................................................ 51
Table 3.2 Buyers’ supply options ......................................................................... 66
Table 3.3 New product development processes ................................................... 72
Table 3.4 Key purposes of forming alliances in NPD ......................................... 84
Table 4.1 Approaches and main features of two research paradigms ................ 100
Table 4.2 The features of Quantitative and Qualitative Research Approaches .. 103
Table 4.3 Strengths and limitations of case study .............................................. 108
Table 4.4 Strengths and limitations of interview ............................................... 115
Table 4.5 The major types of interviews ............................................................ 117
Table 4.6 Strengths and limitations of observation ............................................ 119
Table 4.7 Tactics for ensuring validity and reliability of case study.................. 126
Table 5.1 Canterbury timeline of product development .................................... 131
Table 5.2 Knitted fabrics division ...................................................................... 152
Table 5.3 Apparel & Trade Division .................................................................. 153
Table 5.4 Business alliance division .................................................................. 154
Table 5.5 New Wide’s annual sales revenue ...................................................... 155
Table 5.6 The timeline of New Wide’s business development .......................... 158
Table 6.1 NW’s partnering relationships in its NPD.......................................... 277
Table 6.2 The alliances formed by NW ............................................................. 284

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List of Figures
Figure 2.1 The T&A value chain ......................................................................... 26
Figure 3.1 Five force model ................................................................................. 45
Figure 3.2 Partnering relationships based on asset specificity ............................ 58
Figure 3.3 The supply options of buyers ............................................................. 65
Figure 3.4 The stage-gates process models.......................................................... 71
Figure 3.5 Fashion Retail Product Development Model ..................................... 73
Figure 3.6 Revised apparel retail product development model ........................... 74
Figure 3.7 The process of apparel NPD ............................................................... 75
Figure 3.8 The developed research conceptual model ......................................... 96
Figure 4.1 The analysis of qualitative research ................................................. 120
Figure 4.2 Open coding process ........................................................................ 122
Figure 4.3 Screen shot of open coding by free nodes of NVIVO ...................... 123
Figure 4.4 Screen shot of open coding by tree nodes of NVIVO ...................... 124
Figure 4.5 A basic IDEF0 technique template ................................................... 125
Figure 4.6 Example of IDEF0 ............................................................................ 125
Figure 5.1 The triangle product plan.................................................................. 134
Figure 5.2 The NPD process of Canterbury of New Zealand ............................ 143
Figure 5.3 The overview of NPD network of New Wide and J.J.’s Mae. Inc ... 147
Figure 5.4 The departments and personnel interviewed in New Wide .............. 148
Figure 5.5 The departments and personnel interviewed in Rainbeau ................ 148
Figure 5.6 New Wide Group business structure ................................................ 151
Figure 5.7 New Wide fabric development schedule .......................................... 167
Figure 5.8 New Wide fabric development process ............................................ 168
Figure 5.9 Product planning meeting with Mrs. Wang ...................................... 169
Figure 5.10 New Wide’s seasonal mood board constructions ........................... 174
Figure 5.11 New Wide’s seasonal trend boards/weekly moodboards ................ 174
Figure 5.12 The two main apparel NPD schedules of New Wide ..................... 180
Figure 5.13 Trend sources/service that Rainbeau adopted ................................ 187
Figure 5.14 Apparel NPD process of Rainbeau ................................................. 188
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Figure 5.15 The design meeting (fabric sourcing) with the Vice President ....... 189
Figure 5.16 Rainbeau’s sample production room .............................................. 191
Figure 5.17 An example of Rainbeau’s apparel NPD time plan after design
confirmation ............................................................................................... 192
Figure 5.18 Standard example of Rainbeau’s quality certification .................... 193
Figure 5.19 The showrooms of fabric R&D in New Wide’s Taipei head office 197
Figure 6.1 Overview of New Wide’s NPD process ........................................... 210
Figure 6.2 Overview of NW’s fabric NPD ........................................................ 211
Figure 6.3 Research and analysis of NW’s fabric NPD A1 ............................... 212
Figure 6.4 Synthesis of NW’s fabric NPD A2 ................................................... 215
Figure 6.5 Selection of NW’s fabric NPD A3 ................................................... 218
Figure 6.6 Production of NW’s fabric NPD A4 ................................................. 221
Figure 6.7 Distribution of NW’s fabric NPD A5 ............................................... 224
Figure 6.8 Overview of NW’s apparel NPD ...................................................... 226
Figure 6.9 Market research and development of NW’s apparel NPD C1 .......... 227
Figure 6.10 Apparel production communication with apparel buyers C2 ......... 230
Figure 6.11 Manufacturing of NW’s apparel NPD C3 ...................................... 233
Figure 6.12 Distribution of NW’s apparel NPD C4........................................... 236
Figure 6.13 Overview of Rainbeau’s (NW’s allied) apparel NPD .................... 238
Figure 6.14 Research and analysis of NW’s allied apparel NPD B1 ................. 239
Figure 6.15 Synthesis of NW’s allied apparel NPD B2 ..................................... 242
Figure 6.16 Selection of NW’s allied apparel NPD B3 ..................................... 245
Figure 6.17 Manufacturing of NW’s allied apparel NPD B4 ............................ 248
Figure 6.18 Distribution of NW’s allied apparel NPD B5 ................................. 250
Figure 6.19 New Wide’s integrated textile and apparel NPD and information
flows ........................................................................................................... 263

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Abstract
Given the severe global competition and the manufacturing challenges, retaining competitiveness
in the textile and apparel (T&A) industries has become crucial for manufacturers. To achieve this,
although historically manufacturers have been regarded as mainly production orientated, a number
of them have occupied a primary intermediary position by applying the mechanisms of industrial
upgrading and instituting new product development (NPD) in their businesses together with the
synergy of alliances and networks. This has enabled the manufacturers to provide various products
and services to international buyers. The Taiwanese T&A manufacturers can serve as a good
example. They have managed to retain their competitiveness in the global industry for the last half
century by continuously evolving their businesses and acquiring extensive capabilities.

To achieve competitiveness in the T&A sectors, strategic planning that can lead to competitive
advantages is required. NPD has emerged as a source of business competitiveness and its success
determinants can lead to competitive advantages. Supply management, particularly partnering
relationships, is crucial to manufacturers’ competitive advantage, since no single firm can possess
all the necessary resources and capabilities. Against this background, this study has constructed a
research framework, in line with the resource-based view (RBV) and transaction cost theory (TCT),
in order to explore how competitive advantages can be achieved, which can lead to manufacturers’
competitiveness. An in-depth case study of a representative Taiwanese manufacturer has been
employed and examined. The selected Taiwanese T&A manufacturer has acquired resources,
various (dynamic) capabilities and knowledge through its NPD process, resulting in core
competences and sources for competitive advantages. It has become a lead firm in its supply
chain/network, deploying a variety of partnering relationships in order to conduct NPD activities
strategically, and has vertically integrated T&A NPD. This has allowed it to provide an increasing
variety of new products and services, in order to serve a wider range of customers, thus
continuously acquiring business opportunities in dynamic markets.

This study has found that the manufacturers in the T&A industries can adopt more proactive
strategic modes in NPD activities, to enhance NPD outcomes and their relationships with buyers. It
is important for manufacturers to acquire crucial and complementary resources/capabilities through
strategic networks, developing alliances to strategically plan and implement NPD. Operational
relationships need not only to be viewed in relation to their immediate cost reduction benefits, but
also to be extended to longer-term collaborations, in order to achieve competitive advantage
deriving from evolving products and cost benefits based on a holistic and strategic view of the
business.

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