Nike just did it: International Subcontracting and Flexibility in Athletic Footwear Production

Donaghu, Michael T.; Barff, Richard

doi:10.1080/00343409012331346204

Cited by 157 publications

(41 citation statements)

References 31 publications

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“…9 No longer differentiating among the contactors as developed, developing, or volume producers (Donaghu and Barff, 1990), Nike allowed these elite suppliers to serve multiple roles through their subsidiary relationships in Asia. For example, Feng Tay of Taiwan produces its high-end products in Taiwan, volume shoes through its China subsidiaries, and standard models at plants in Indonesia and Vietnam.…”

Section: Embedding Csr Valuesmentioning

confidence: 99%

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Embedding CSR Values: The Global Footwear Industry’s Evolving Governance Structure

2007

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Section: Embedding Csr Valuesmentioning

confidence: 99%

“…Three classes of independently owned and operated factories populated this production system: 'developed partners,' 'volume producers,' and 'developing sources' (see Figure 1) (Donaghu and Barff, 1990).…”

Section: Embedding Csr Valuesmentioning

confidence: 99%

Embedding CSR Values: The Global Footwear Industry’s Evolving Governance Structure

2007

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“…For example, while in buyer-driven chains, global buyers like Nike tend to own few or no factories and instead focus on product design, branding and marketing, their governance power extends well beyond their main contractors as their orders and specifications travel down to hundreds of lower-tier suppliers in their supply chain[2] (Donaghu and Barff, 1990). "Governance as coordination" highlights the varied forms of inter-firm linkages in GVCs.…”

mentioning

confidence: 99%

Global value chains, rising power firms and economic and social upgrading

Lee

Gereffi

2015

Critical Perspectives on International Business

175

117

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Purpose -The purpose of this paper is to introduce the global value chain (GVC) approach to understand the relationship between multinational enterprises (MNEs) and the changing patterns of global trade, investment and production, and its impact on economic and social upgrading. It aims to illuminate how GVCs can advance our understanding about MNEs and rising power (RP) firms and their impact on economic and social upgrading in fragmented and dispersed global production systems. Design/methodology/approach -The paper reviews the GVC literature focusing on two conceptual elements of the GVC approach, governance and upgrading, and highlights three key recent developments in GVCs: concentration, regionalization and synergistic governance. Findings -The paper underscores the complicated role of GVCs in shaping economic and social upgrading for emerging economies, RP firms and developing country firms in general. Rising geographic and organizational concentration in GVCs leads to the uneven distribution of upgrading opportunities in favor of RP firms, and yet economic upgrading may be elusive even for the most established suppliers because of power asymmetry with global buyers. Shifting end markets and the regionalization of value chains can benefit RP firms by presenting alternative markets for upgrading. Yet, without further upgrading, such benefits may be achieved at the expense of social downgrading. Finally, the ineffectiveness of private standards to achieve social upgrading has led to calls for synergistic governance through the cooperation of private, public and social actors, both global and local. Originality/value -The paper illuminates how the GVC approach and its key concepts can contribute to the critical international business and RP firms literature by examining the latest dynamics in GVCs and their impacts on economic and social development in developing countries.

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“…Governed by a highly calculative rationality, western buyers sought to contract with the lowest cost producers and were willing to switch suppliers on relatively small price differentials. Typical of this tendency is Nike, which shifted its sourcing from contractors located in Japan to Southeast Asia and then to China over a 15-year period to minimize product costs (Donaghu & Barff, 1990).…”

Section: Founding Institutional Contextmentioning

confidence: 99%

Globalization and the Renewal of Asian Business Networks

Carney

2005

Asia Pacific J Manage

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How are Asia's business networks responding to the growing integration of the region into the global economy? To address the question the paper identifies two distinct types of Asian business network originating in two different institutional contexts. It is argued that these original contexts have imprinted upon dominant firms' governance structures and influence their preferred networking mode. Consequently, the renewal of business networks reflects the pressures of globalization and the governance structures of the dominant organizational forms in the networks. Two types of network (global commodity chains and family business groups) are described and the global pressures for change bearing upon them outlined. Copyright Springer Science + Business Media, Inc. 2005relational contracting, global commodity chains, business groups,

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Nike just did it: International Subcontracting and Flexibility in Athletic Footwear Production

Cited by 157 publications

References 31 publications

Embedding CSR Values: The Global Footwear Industry’s Evolving Governance Structure

Embedding CSR Values: The Global Footwear Industry’s Evolving Governance Structure

Global value chains, rising power firms and economic and social upgrading

Globalization and the Renewal of Asian Business Networks

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