The applicability of cluster theory to Canada's small and medium‐sized apparel companies

Abstract

PurposeThe purpose of this paper is to identify and map trends in the Canadian apparel industry (in a global context) and, through the application of Porter's models, establish strategies that could be employed by Canadian small and medium enterprizes (SMEs) in response to the move toward trade liberalisation since the phasing out of the multi‐fibre arrangement.Design/methodology/approachThe literature review established trends in the apparel industry both in Canada and globally. Qualitative research in the form of case studies highlighted apparel suppliers' perceptions of Canada's strengths and weaknesses as a business setting and provided preliminary information on possible supplier activities which provide value and competitive advantage. The analysis of the primary data also allowed the development of preliminary questions, answers to which will further enhance the understanding of clusters and their applicability to Canada's apparel SMEs.FindingsCanada's apparel manufacturing industry is winding down while imports are continuing to grow. At the same time, the Canadian market is not large enough to sustain all the suppliers, thus forcing those who are competitive to export, primarily to the USA, which is Canada's major apparel export destination. The morphology of related and supporting industries to apparel suppliers is changing. The findings suggest that Canada's apparel supply is becoming more of a service and less of a manufacturing industry.Originality/valueThis paper provides an understanding of Canada's position in the global apparel map and ascertains whether competitive cluster strategies exist for the Canadian apparel industry. Furthermore, it sets the stage for further research by identifying knowledge gaps pertaining to the applicability of clusters to the apparel industry and providing data and findings to bridge these gaps.

The role of government and the international competitiveness of SMEs

“…The main purpose of this study is to examine the role of government and the Export Promotion Agencies (EPAs) in the NTHEs sector in Ghana. Given the interpretivist nature of our research question, a qualitative approach was employed (Campaniaris et al, 2011;Boyce, 2006). Given the complexity and limited literature on the phenomenon being studied a semi-structured interview which enables participants to elaborate expansively on their realities was considered ideal (Gligor et al, 2016).…”

The role of place branding and image in the development of sectoral clusters: The case of Dubai

“…A growing body of literature (Campaniaris et al, 2011;Delgado, et al, 2014;Porter, 2008) support the view that clusters influence and benefit the businesses located within them in numerous interrelated ways by (i) providing a market for products/services of businesses in cluster (Campaniaris et al, 2011) through the availability of a rich and diversified supplier base (Porter, 1998); (ii) providing a rich labor pool to businesses in cluster (Campaniaris et al, 2011), as government often sets up specialized training programs in cluster regions, and a number of qualified and trained people are attracted to the region which provides them with job opportunities and no relocation inconveniences should they change employer (Porter, 1998); (iii) facilitating higher growth in new business formation and start-up employment (Delgado, et al, 2014); (iv) supporting the development of new establishments of existing firms, and new businesses within the cluster (Delgado, et al,. 2014;Porter, 2008); (v) driving the direction and pace of innovation through close interactions to recognize buyers' needs, the ability to source quickly through close suppliers' networks, and the ability for staff to perceive gaps in product/service offers more quickly (Hafeez et al, 2010); and (vi) providing social networks (Hafeez and Alghatas, 2007) which facilitate the communication and the articulation of tacit knowledge (Malmerg and Power, 2005), as technical and competitive information accumulates within a cluster to which the businesses present may have access through supply chains (Hafeez et al, 2006;Keoy et al 2007) and networking (Porter, 2008).…”

El clúster como modelo factible para el desarrollo del sector de confecciones-diseño de moda: un estudio en Bucaramanga (Colombia)

“…Las compañías comenzaron a cambiar su propuesta de valor, basada para ese entonces en la elaboración de productos manufacturados, y le dieron tanto énfasis a la calidad, la sofisticación y la innovación del producto, que se volvieron expertas en estos temas. Esto mejoró en gran medida la oferta de valor que los clientes percibían -la cual incluía el diseño del producto, el uso de nuevas tecnologías y una mayor inversión en marca-, lo que se tradujo después en un aumento de la demanda de dichos productos (Campaniaris, Hayes, Jeffrey, & Murray, 2011).…”

“…De este modo, las empresas comenzaron a desarrollar una especie de joint venture, integrando algunos proveedores y empresas que ofrecen productos similares para ampliar su mercado (Campaniaris et al, 2011). Además, tomaron en cuenta otras instituciones como universidades (que aportan la cuota de investigación y desarrollo y generación de conocimiento) y la Toronto Fashion Incubator (TFI).…”