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Article
Publication date: 12 November 2018

Jatin Goyal, Rajdeep Singh, Harpreet Kaur and Kanwaljeet Singh

The purpose of this study is to comprehend the efficiency levels of the Indian textile industry and also its sub-sectors in the light of changing global and national…

Abstract

Purpose

The purpose of this study is to comprehend the efficiency levels of the Indian textile industry and also its sub-sectors in the light of changing global and national business environment. It is imperative to study the efficiency levels of textile industry for an emerging economy like India, where the industry contributes up to 13 per cent in export earnings, 10 per cent in total industrial production and 2 per cent in gross domestic product (GDP). The study holds an important place in the wake of phasing out of the quota regime existing under the Multi Fibre Agreement (MFA) and the rising competition being faced from countries such as Bangladesh, Vietnam and Cambodia.

Design/methodology/approach

The present study attempts to have an in-depth analysis of the efficiency levels in the Indian textile industry using meta-frontier data envelopment analysis, which is a non-parametric linear programming based frontier technique.

Findings

The findings highlight that the Indian textile industry is inefficient and has a huge scope of improvement in terms of efficiency. It also confirms the existence of different production functions among the sub-sectors of the industry. Among the different sub-sectors, the proximity of production frontier of readymade garments is the closest to meta-frontier followed by cotton and blended yarn, man-made fibre, cloth and others.

Practical implications

The findings bear strong implications for the policymakers in their attempt to regain the lost competitive position of the Indian textile industry and to enhance its contribution in the economy. As per the findings, policymakers should target the relatively inefficient sub-sectors of textile industry (cloth, man-made fibre, cotton and blended yarn) to infuse more efficiency in these sectors to enhance the market share of the Indian textile industry in the global textiles market.

Originality/value

The current study is a unique addition to the sparse literature on managing efficiencies in the textile industry, particularly of emerging economy like India. Looking at the methodological and geographical coverage of the previous work, it was found that no study has explored and analysed the efficiencies of the sub-sectors in the Indian textile industry using meta-frontier analysis. Therefore, this study will be the first of its kind which seeks to fill such gaps and intends to enrich the available literature.

Details

International Journal of Law and Management, vol. 60 no. 6
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 13 July 2020

Shashi K. Shahi, Atul Shiva and Mohamed Dia

This research study explores the adoption of integrated sustainable SCM practices in the textile industry in India and its impact on the firm's business performance.

Abstract

Purpose

This research study explores the adoption of integrated sustainable SCM practices in the textile industry in India and its impact on the firm's business performance.

Design/methodology/approach

The analysis was carried out using the partial least squares structural equation modeling using SmartPLS 3.3.2.

Findings

It was found that the demand-side sustainability initiatives of the large firms and the internal sustainability practices of the small firms directly impacted their business performance. It was also found that the suppliers' sustainability initiatives had a direct and positive impact on the internal sustainability of the firm, which in turn had a direct and positive impact on the demand-side sustainability in the Indian textile industry.

Originality/value

The findings emphasize the distinctive role of each dimension of the integrated sustainable SCM on the firm performance in the Indian textile industry.

Details

Qualitative Research in Organizations and Management: An International Journal, vol. 16 no. 3/4
Type: Research Article
ISSN: 1746-5648

Keywords

Article
Publication date: 1 February 1991

Sara Umberger Douglas and Arathi Narayan

The purpose of this study was to explore relationships betweentextile and apparel manufacturers in India and the United States.Results of the survey indicated that…

Abstract

The purpose of this study was to explore relationships between textile and apparel manufacturers in India and the United States. Results of the survey indicated that respondents differed significantly on perceptions of industry opportunities and problems in their respective countries. Significant differences were also found between industry leaders in the two countries when various aspects of their business practices and opinions were examined. Findings are analysed and discussed in relation to their implications for improving global marketing strategies, industrial competitiveness, and international trade.

Details

International Marketing Review, vol. 8 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 12 May 2020

Rahul Dhiman, Vinod Kumar and Sudhir Rana

This study aims to examine whether export competitiveness (EC) in the two groups of the Indian textile industry i.e. “textiles” and “textile products” group differ.

Abstract

Purpose

This study aims to examine whether export competitiveness (EC) in the two groups of the Indian textile industry i.e. “textiles” and “textile products” group differ.

Design/methodology/approach

The study examines how exchange rate (ER), real effective exchange rate (REER) and EC of both the groups are related in the long run over the period 1991-1992 to 2018-2019 using Granger causality test and Johansen and Juselius co-integration test.

Findings

The study confirms that EC is a challenge that needs to be addressed to sustain in the international market, as the volatile trend can be found for EC in both groups. The econometric framework shedding light on both groups of the textile industry suggest that select determinants have different relationships with the EC for two groups. The findings of the Granger causality test reveal that the presence of unidirectional causality running from ER to EC in the case of both the groups. Also, the select variables are found to be co-integrated in the long run. However, in the case of REER, no causality is found running from REER to EC.

Originality/value

ER is a vital determinant of EC and exporters can sustain competitiveness in global markets by reducing their profit mark-up in the face of an appreciating currency.

Details

Review of International Business and Strategy, vol. 30 no. 3
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 5 May 2021

Abdulla and Shiv Kumar

This paper aims to examine technical efficiency and its determinants in Indian textile garments industry in post-agreement on textiles and clothing regime and evaluate the…

Abstract

Purpose

This paper aims to examine technical efficiency and its determinants in Indian textile garments industry in post-agreement on textiles and clothing regime and evaluate the technical efficiency among micro, small and medium enterprises (MSMEs) firms.

Design/methodology/approach

This study uses unbalanced panel data for the period 2005–2010 to 2015–2016. The stochastic frontier function is used to estimate technical efficiency and its determinants.

Findings

The results show that the overall ecosystem of textile garments’ value chains could be improved to enhance the technical efficiency thereof. The result also reveals that small-scale firms have the highest technical efficiency scores, and medium-scale firms have the least technical efficiency score among all the categories of MSMEs.

Research limitations/implications

The textile garments industry needs to define its innovation strategies, as these strategies lead to different results that can be achieved only through the management of resources dedicated to the generation and implementation of innovations.

Practical implications

This study has shown that to offset India’s cost disadvantage in the international markets, there is a need to develop an ecosystem of textile manufacturing and value chains, eliminate the inverted duty structure (where inputs are taxed at a higher rate than the final product) and switch over from shuttle looms toward shuttle-less looms. This would unleash the potential of textile and garments industry and make it globally competitive and technically efficient. Further, there will be an alignment with the ease of doing business with an appropriate mix of policy, technology, institution, infrastructure, information and services.

Originality/value

Using frontier production function takes stochastic context into account for the dynamic character of technical efficiency and its components. Most of the past studies have assessed technical efficiency at the aggregate level using three-digit National Industrial Classification (NIC) or four-digit NIC code. An analysis at higher levels of aggregation masks the variation in technical efficiency. This study used five-digit NIC data to measure the firm-specific technical efficiency of the textile industry. According to the authors’ knowledge, this study is the first of its kind in the Indian textile industry using stochastic frontier approach and panel data. Further, it also looks at the contribution of different determinants in technical efficiency to the firms.

Details

Research Journal of Textile and Apparel, vol. 25 no. 4
Type: Research Article
ISSN: 1560-6074

Keywords

Article
Publication date: 10 May 2011

Manveer Mann and Sang‐Eun Byun

The Indian retailing industry has undergone dramatic changes because of the government's recent liberalization in retail sectors along with the country's rapid economic…

11151

Abstract

Purpose

The Indian retailing industry has undergone dramatic changes because of the government's recent liberalization in retail sectors along with the country's rapid economic development and emerging consumer groups with market power. Despite the increasing importance of India in the global market, little is known about apparel retail sectors in India and the information available is fragmented and under‐developed. The purpose of this paper is to assess the competitiveness of the Indian apparel retail industry and the changing market conditions since the 2006 retail trade liberalization to identify the opportunities and challenges of operating in the Indian market.

Design/methodology/approach

This study employs Porter's diamond model as the theoretical framework. This study conducts an extensive review of published documents including academic journals, trade publications, and government and industry web sites and discusses them within the framework of the diamond model.

Findings

By analyzing the multi‐determinants of the diamond model (factor conditions, demand conditions, related and supporting industries, firm strategy and rivalry and the role of government), the authors identified key opportunities and challenges of entering the Indian apparel retail industry.

Originality/value

This study provides a comprehensive view of the rapidly evolving Indian apparel retailing industry by evaluating multi‐dimensions of competitive conditions in Porter's model.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 15 no. 2
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 16 November 2015

Dhwani Gambhir and Seema Sharma

This paper aims to study whether exporting enterprises are more productive in export-intensive industries. It also aims to identify the action area and policy direction…

Abstract

Purpose

This paper aims to study whether exporting enterprises are more productive in export-intensive industries. It also aims to identify the action area and policy direction for enhancing productivity in Indian textile manufacturing. Global integration has increased the volume of international trade. It is crucial for countries to have competitive enterprises to capture a larger share of the global economy. Improvement in productivity performance not only enhances competitiveness but also promotes growth in an economy.

Design/methodology/approach

A productivity analysis for the Indian textile manufacturing industry using firm-level panel data is conducted. The data are collected for 160 firms relevant to the period from 2007-2008 to 2012-2013 from Ace Equity database. Using the technique of data envelopment analysis, the output oriented Malmquist productivity index is computed and the sources of productivity change are identified. Also, a comparison between the productivity performance of the exporting and non-exporting firms has been made.

Findings

The results suggest that exporting firms are exhibiting better productivity performance and resource utilisation during the study period. Technology change and scale efficiency seem to be the major sources of productivity gain for exporting firms.

Research limitations/implications

The research is limited to a single industry, reference database and methodology. There is scope for further in-depth, micro-level research to analyze the differences in drivers of productivity for exporting and non-exporting firms.

Originality/value

This paper provides validation to export promotional policies in the Indian textile industry by establishing better productivity performance of exporting firms. It also provides direction for managerial action by identifying efficiency component as the factor pulling down productivity.

Details

Measuring Business Excellence, vol. 19 no. 4
Type: Research Article
ISSN: 1368-3047

Keywords

Article
Publication date: 16 November 2015

Dhwani Gambhir and Seema Sharma

Productivity gain in the manufacturing sector draws immense significance for all developing countries, particularly due to its contribution in enhancing competitiveness…

Abstract

Purpose

Productivity gain in the manufacturing sector draws immense significance for all developing countries, particularly due to its contribution in enhancing competitiveness and promoting economic growth in the long run. The purpose of this paper is to study the sources of productivity gain for large and small-scale manufacturing firms.

Design/methodology/approach

This paper studies productivity performance of Indian textile manufacturing industry using firm-level panel data of 160 companies for the period 2007-2008 to 2012-2013. The output-oriented Malmquist productivity index has been computed through data envelopment analysis. Further, the sources of productivity gain are identified for the entire textile industry as well as for the small and large-scale sector companies separately.

Findings

Regarding the sources of productivity gain, technology change and scale efficiency seem to be the major drivers. Pure efficiency change is a concern for all firms irrespective of scale. The results suggest that moderately large companies are exhibiting better productivity performance during the study period.

Research limitations/implications

The research is limited to a single industry, reference database and methodology. There is scope for further research at the micro-level to analyse the drivers of productivity for enterprises operating at different scales.

Originality/value

The paper contributes to existing literature by identifying the core action area for improving productivity performance in Indian textile manufacturing as the pure efficiency component. It also adds to research on the most productive scale of operation in manufacturing.

Details

Journal of Economic and Administrative Sciences, vol. 31 no. 2
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 2 March 2010

R.N. Joshi and S.P. Singh

The Indian garment industry has witnessed a significant change since the inception of the New Textile Policy 2000 that suggests removing the industry from the list of…

2633

Abstract

Purpose

The Indian garment industry has witnessed a significant change since the inception of the New Textile Policy 2000 that suggests removing the industry from the list of small‐scale industries with a view to improving its competitiveness in the global market. As productivity is the driving factor in enhancing the competitiveness of any decision‐making entity (firm), a study of total factor productivity (TFP) and its sources can provide vital inputs to a firm for improving its competitiveness. Keeping this as a backdrop, the paper attempts to measure the TFP in the Indian garment‐manufacturing firms; identify sources of the TFP; and suggest measures for the firms to enhance their productivity.

Design/methodology/approach

The study is based on the firm‐level panel data collected from the Centre for Monitoring Indian Economy for the years 2002‐2007. One output variable, namely, gross sale and four input variables, namely, net fixed assets, wages & salaries, raw material, and energy & fuel, have been selected. The DEA‐based Malmquist Productivity Index (MPI) approach has been applied to measure the TFP.

Findings

The Indian garment industry has achieved a moderate average TFP growth rate of 1.7 per cent per annum during the study period. The small‐scale firms are found to be more productive than the medium‐ and large‐scale firms. The decomposition of TFP growth into technical efficiency change (catch‐up effect) and technological change (frontier shift) reveals that the productivity growth is contributed largely by technical efficiency change rather than by technological change.

Originality/value

Earlier studies on the Indian garment industry have applied the partial factor productivity approach, which has several limitations. This paper measures the TFP and identifies its sources through applying a non‐parametric DEA‐based MPI approach. Through this approach, the productivity growth is decomposed into technical efficiency change and technological change. Further, an attempt has also been made to study the variation in the productivity growth rates across location, scale‐size and type of garments.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 14 no. 1
Type: Research Article
ISSN: 1361-2026

Keywords

Abstract

Subject area

Governance challenges in reverse value chain.

Study level/applicability

Women employment system in textile and clothing industry.

Case overview

The textile and clothing firms, often frustrated by frequent labor issues, used an innovative employment scheme – Sumangali scheme – to employ young female workers from poor families in rural areas, aged between 18 and 25 years, as apprentices for three years who would stay in dormitories located in the vicinity of the factories, draw low wages with minimum benefits. But the scheme was criticized by labor unions and Europe- and US-based non-governmental organization (NGOs) on the grounds of alleged violation of labor rights such as freedom of association, freedom of movement, exploitative working conditions, low wages with minimum or no benefits, long working hours and abusive supervisors. Their public campaign against the alleged employment practices has put tremendous pressure on the global buyers to take steps to ameliorate the situation. In the wake of campaign by NGOs, few buyers have even terminated the relationship with the manufacturers. Others have warned action against those erring manufacturers. The actions by global buyers, NGOs against some of the women employment practices raised several questions in the minds of manufacturers. They were wondering why US- and Europe-based NGOs were up in arms to dump an employment scheme unmindful of socio-economic realities in India? Is it a clever ploy that developed nations use some private, voluntary, corporate social responsibility norms to stop companies purchasing textile and clothing products from a developing country like India on the grounds of violation of labor rights? As per the International Labor Organization (ILO) Convention No. 81, it is the responsibility of central/state governments to inspect and monitor labor employment practices in an industry. Then why NGOs and other private groups volunteer to become watch dogs of labor practices and launch campaigns against mills? Would it not undermine the role of government in ensuring industrial harmony? Even if NGOs' actions are justified on the grounds of moral and ethical principles, what role should they play when it comes to management–worker relationship? In the Indian context, only the government can interfere if the relationship turns sour? Should NGOs need to use a different set of ethical standards which are more relevant and contextual to the socio-economic environment in India?

Expected learning outcomes

To understand evolution of apparel global value chain and workforce development challenges in India; to explore the link between consumer activism and corporate social responsibility; to explore the challenge of addressing issues such as alleged human rights violation and labor exploitation by independent suppliers located in India; to explore the challenges faced by global buyers in contextualizing, operationalizing and realizing certain human rights along the supply chain located in India; and to explore sustainability challenges of women employment in textile and clothing mills in India.

Supplementary materials

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Social implications

Sustenance of women employment system in India's textile and clothing industry and its associated challenges.

Details

Emerald Emerging Markets Case Studies, vol. 4 no. 8
Type: Case Study
ISSN: 2045-0621

Keywords

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