A case study of strategic network of Hong Kong clothing manufacturers in mail order business

Pao Yue-kong Library Electronic Theses Database

A case study of strategic network of Hong Kong clothing manufacturers in mail order business

 

Author: Tong, Chi-wai
Title: A case study of strategic network of Hong Kong clothing manufacturers in mail order business
Year: 1999
Subject: Clothing trade -- China -- Hong Kong -- Case studies
Strategic alliances (Business) -- China -- Hong Kong -- Case studies
Mail-order business -- China -- Hong Kong -- Case studies
Hong Kong Polytechnic University -- Dissertations
Department: Multi-disciplinary Studies
Institute of Textiles and Clothing
Pages: 96, [23] leaves : ill. ; 1999
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1503018
URI: http://theses.lib.polyu.edu.hk/handle/200/3331
Abstract: Strategic networks are very popular today and have become a necessity for companies. The Hong Kong clothing industry is no exception. This research study only examines the networks that exist among Hong Kong's clothing manufacturers for the mail order business. Networks are defined as long-term cooperative partnerships involving manufacturers, customers, competitors and industry-related firms. This links specific facets of the businesses of two or more firms. At its core, this link is a trading partnership that enhances the effectiveness of the competitive strategies of participating firms by providing for the mutually beneficial trade of technologies, skills or products based upon them. A network can take a variety of forms ranging from an arm's-length contract to a joint venture. This research focused 1) to identify the characteristics of a strategic network between Hong Kong clothing manufacturers in the mail order business and 2) to study whether strategic networks can enhance or maintain the strength for them through this dissertation. The research was divided into two main parts. The first part is an exploratory research, which used qualitative method involved a literature reviews, in-depth mail order company interviews and a pilot test. The second part is descriptive research, which used quantitative method to survey the Hong Kong clothing manufacturers. 150 questionnaires were administered to clothing manufacturers. Only 82 usable questionnaires were obtained. Four hypotheses were set and a statistical package for the social sciences (SPSS) was used to test the significant levels of these hypotheses: H1: Close relationships that rely on cooperation and commitment are the major characteristics within a strategic network. H2: Trust is important for clothing manufacturers in the mail order industry ensure that their strategic networks function. H3: Contracts are used as a major means to achieve successful partnerships by clothing manufacturers in the mail order industry in Hong Kong. H4: Clothing manufacturers are more likely to maintain strategic networks during adverse conditions. The four hypotheses were supported and the results showed that relationship, trust, commitment and cooperation are the core characteristics that make their strategic networks work, whereas close relationships were generated more by commitment than cooperation. In this study, over 80% of the respondents agreed that the networks could provide the benefits including increasing market share; shortening delivery; lowering price; increasing quantity flexibility; and improving quality through mutual trust and close relationship. Among all these benefits evolved from strategic networks only lower prices and good quality were considered by buyers to be important. In addition, trust was regarded as a supplementary element, because trust ensures that each network members is willing to contribute equally to the network whether in boom or during adverse conditions.

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