In comparison with many other countries, the transformation of the agrofood system in India started relatively late. Here, the corporatization of retail, and later of agriculture, started from 1991, when the Indian government started to deregulate and liberalize the economy. A major focus in political strategies has been placed on economic, trade, and industrial policies. This has had, and continues to have, a particular impact on India's population in the nonindustrialized sectors, such as agriculture. The deregulation and the subsequent decline in state subsidies for production inputs such as water, electricity, fertilizer, and seeds created an economic environment of unknown competition for many smallholders (Motiram and Vakulabharanam, 2007;Sharma, 2007).At the same time, the Indian market environment changedöalso affecting smallholder farmers. Along with changing consumer demands, new corporate actors are entering Indian agrofood networks, such as corporate retailers, processors, or exporters of quality produce. These firms are often aiming to execute vertical coordination in their supply chains, which ensures them greater control over the production processes and thus to source produce which meets their strict requirements and standards (Barghouti et al, 2004). Within the frame of vertical coordination, links between farmers and buyers are becoming tighter to replace conventional open-market relations (Humphrey and Memedovic, 2006). This type of procurement organization is also the result of the changing national policy orientation in India, following somewhat neoliberal tendencies, which is also affecting agriculture and trade (Landes, 2008;Pitale, 2007).However, the Indian government not only aims to initiate new organizational forms in agricultural production and marketing to integrate large firms, but also aims to encourage groups of small-scale primary producers to connect with corporate buyers. With the amendment of the Companies Act 1956 in 2002, the Indian government
In a relatively short period of time, Indonesia has become a significant centre of clothing production within the global economy. Its overall growth can be explained primarily by the intersection between two sets of political-economic processes: those operating at the global level of the industry in general and those specific to Indonesia itself. Within these general processes, we explore the particular organizational mechanisms through which this growth has occurred. Detailed field evidence shows how the Indonesian clothing industry is deeply embedded in production networks which connect domestic producers with international networks of production and distribution, notably those organized by Korean, Taiwanese, US, and European firms. Although such networks are generally consistent with Gereffi's concept of the buyer-driven global commodity chain, we show that the precise shape and the driver of the company-specific production networks in Indonesia are highly dependent on the specific market being served. Finally, brief attention is given to the potential impact of the current East Asian economic crisis on Indonesian clothing firms.
The global organization of the clothing industry has been the prime example of buyer‐driven commodity chains. However, previous empirical studies to substantiate Gereffi's assertion have been highly Western centric and predominantly based on the empirical evidence of American retailers and brand name companies. In this article I demonstrate that any clothing commodity chain has various influential factors, such as the national and global regulatory framework, the societal context of the leading firm, the fashion context of the products, as well as the actual brand ownership. Thus, the organization of clothing firms in the global economy can develop diverse intra‐sectoral commodity chain coordinations. Using a hypothetical clothing commodity chain as an example, I attempt to identify the individual commodity chains within which Indonesian clothing firms are embedded. Furthermore, I outline the ways in which Indonesian clothing firms were affected by the economic crisis of the late 1990s.
Despite the fact that most Indonesian brand-owners continue to emphasize their marketing activities in the domestic market, several brand-owners have started to export clothing under their own label. This has been particularly the result of the economic crisis in the late 1990s, which affected companies serving the domestic market. Companies were trying to compensate for the loss of sales on the domestic market by redirecting their marketing activities to foreign countries. This export strategy has been driven largely by the sole aim to survive. However, in addition to these export activities, some companies have rather sophisticated, long-standing business relations to their distributors in overseas markets. This paper explores these export activities in the context of the global commodity chain framework.
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