Outsourcing and supplier development: capability development process in the Brazilian sports apparel industry

Abstract

Outsourcing allows quick reactions to market fluctuations and allows firms to focus on their core business. This strategy is currently used in the Brazilian apparel industry. The paper analyzes the interaction between big customers (some multinationals firms) and Brazilian suppliers in the sports apparel industry to verify how these relationships can contribute to the capability development of suppliers. Multiple case studies were conducted. The findings indicated that collaborative, and long-term relationships are beneficial to businesses and customers significantly influence the development of the sewing factory suppliers with whom they work.