Analysis of the Restrictive Elements of China's Textile Industry in Upgrading Based on “Value Chain”

Yang, Tong; He, Meilin; Zhang, Aixiang

doi:10.5539/ijbm.v5n6p142

Cited by 4 publications

(15 citation statements)

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“…Given the Chinese textile industry's diminishing comparative advantage associated with low labor and production costs, R&D is predicted to become a new strategic direction for the industry to remain competitive in the global marketplace (Yang et al, 2010). As a relatively new phenomenon, very little is known about Chinese textile firms' R&D processes, intensity, and effectiveness.…”

Section: Discussionmentioning

confidence: 99%

“…The reported percentage (23%) of imitation is likely to be lower than the actual number of Chinese textile firms involved in imitation, which is believed to be significantly higher (Bin, 2008;Yang et al, 2010). The reported percentage (23%) of imitation is likely to be lower than the actual number of Chinese textile firms involved in imitation, which is believed to be significantly higher (Bin, 2008;Yang et al, 2010).…”

Section: Randd Typesmentioning

confidence: 91%

“…Involvement in international operations indicates a firm's market orientation tactics. There is a gap between textile manufacturers in China and those in advanced economies, in terms of both new product development and manufacturing processes (Yang et al, 2010). There is a gap between textile manufacturers in China and those in advanced economies, in terms of both new product development and manufacturing processes (Yang et al, 2010).…”

Section: Involvement In International Operationsmentioning

confidence: 99%

“…In the textile industry, imitation through knowledge spillover occurs when foreign investors bring in an advanced technology or product to subsidiaries in developing countries, and, with time, the innovation is appropriated by local textile firms with no or minor costs (Onyeiwu, 1997). Imitation, which requires less financial and human resources, is often preferred by firms in the Chinese textile industry because Chinese textile firms' (a) innovative capacity is lagging relative to those in developed nations and (b) financial resources are restricted to non-R&D-related activities (Onyeiwu, 1997;Yang et al, 2010). For example, firms are required to have greater financial and human resources to implement internal R&D in comparison with external R&D. Furthermore, relational resources (i.e., a firm's relationship and networking with universities, government, or suppliers) are necessary for R&D alliances (Pike et al, 2005).…”

Section: External Randdmentioning

confidence: 99%

See 3 more Smart Citations

An Investigation of Chinese Textile Firms’ R&D Performance

Karpova

2012

Clothing and Textiles Research Journal

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The purpose of this study was to enhance the understanding of Chinese textile manufacturers' research and development (R&D) performance. Specifically, the study empirically examined (a) current trends of R&D activities in the Chinese textile industry; (b) R&D intensity among Chinese textile firms and determinants of its variation; and (c) R&D effectiveness among Chinese textile firms and factors impacting it. The research results are based on survey data from 768 textile manufacturers located in a Southeastern County with a mature textile and apparel cluster. Logistic regression was employed for data analyses. The results showed that R&D investment levels among Chinese textile firms are relatively low in comparison with advanced textile industries in developed countries. Chinese textile firms with international operations had a higher R&D intensity, or investment level, than those without international operations. Foreign ownership and financial resources were not significant predictors of the firm's R&D intensity. Chinese textile firms that relied on acquiring new machinery/technology and were involved in internal R&D activities were more likely to have higher R&D effectiveness, which translated into positive profit margin. The R&D intensity did not contribute significantly to R&D effectiveness. To offset increasing production cost and sustain its diminishing low-cost comparative advantage, the Chinese textile industry's next step is to focus on R&D. The study offers strategic directions to the industry and policy makers that might be helpful to keep the industry competitive in the global marketplace.

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Section: Discussionmentioning

confidence: 99%

Section: Randd Typesmentioning

confidence: 91%

Section: Involvement In International Operationsmentioning

confidence: 99%

Section: External Randdmentioning

confidence: 99%

See 2 more Smart Citations

An Investigation of Chinese Textile Firms’ R&D Performance

Karpova

2012

Clothing and Textiles Research Journal

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“…Of the three panels in Figure 10, it can be seen that China dominated as the main exporter, especially for HS 5509 and HS 5515, while on HS 5503, South Korea more dominated except in 2011 where China was superior. This is because, China's Textile industry produces the largest scale textiles of the world (Yang, He, and Zhang, 2010) and world's leading textile and clothing Exporter (Karaalp and Yilmaz, 2013).…”

Section: Analysis Of Indonesian Fiber Export Performance and Major Exmentioning

confidence: 99%

Comparative Advantages and Export Performance of Indonesian Fiber Industry Product and Some Major Exporter Countries in the World Market, 2008-2012

Asmara¹,

Purnamadewi²,

Mulatsih³

et al. 2015

JEDS

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Increasing competition in the world market requires each country to improve the competitiveness of exported product. Indonesian fiber industry is one industry which is demanded to improve its competitiveness in the world market. The purposes of this study were: (1) analyze the trade map (2) comparative advantages, and (3) analyze the export performance of Indonesian fiber industry product and some major exporter countries in the world market. The analysis method conducted in this study consist of descriptive analysis and comparative advantage (Revealed Comparative Advantage (RCA)).Based on the result, China and South Korea are the major exporters which tend to dominate each of world fiber product. Meanwhile, Indonesia has also important role as a major exporter for world fiber products especially for HS 5509, Indonesia is in the second position. Countries with the highest competitiveness for fiber products consist of HS 5503, HS 5509 and HS 5515 respectively are South Korea, Indonesia, and India. The RCA index progress for each exporter country on the three types of fiber product tends to fluctuate. However, the progress of Indonesian RCA index for the three types of fiber product tends to increase from 2008 to 2012.

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Should the smiling curve frown during an economic downturn to enhance firm performance?

Luan

Tien

2015

Journal of Management & Organization

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This study examines the efficacy of the smiling curve, and clarifies the relationship between downsizing strategies (advertising, marketing, and research and development, respectively) and firm performance specifically in an economic downturn. This study tests hypotheses using 1996–2010 data from theTaiwan Economic Journalon 436 listed Taiwanese companies. The results indicate that the benefits for firms to follow the smiling curve may not occur in the short term and that downsizing strategies may not always be the appropriate strategy to improve firm performance. During an economic downturn, downsizing strategies do not appear to enhance firm performance, that is, the smiling curve should not frown during an economic downturn to enhance firm performance.

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Analysis of the Restrictive Elements of China's Textile Industry in Upgrading Based on “Value Chain”

Cited by 4 publications

References 0 publications

An Investigation of Chinese Textile Firms’ R&D Performance

An Investigation of Chinese Textile Firms’ R&D Performance

Comparative Advantages and Export Performance of Indonesian Fiber Industry Product and Some Major Exporter Countries in the World Market, 2008-2012

Should the smiling curve frown during an economic downturn to enhance firm performance?

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