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(PDF) Repositioning in the Global Apparel Value Chain in the Post-MFA Era: Strategic Issues and Evidence from Sri Lanka | Raveen Ekanayake - Academia.edu
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class="ds-related-work--container js-wsj-grid-card" data-collection-position="5" data-entity-id="120626567" data-sort-order="default"><a class="ds-related-work--title js-wsj-grid-card-title ds2-5-body-md ds2-5-body-link" href="https://www.academia.edu/120626567/Impact_of_Non_economic_Factors_on_the_Development_of_the_Apparel_Sector_in_Sri_Lanka">Impact of Non-economic Factors on the Development of the Apparel Sector in Sri Lanka</a><div class="ds-related-work--metadata"><a class="js-wsj-grid-card-author ds2-5-body-sm ds2-5-body-link" data-author-id="27118906" href="https://cmb.academia.edu/tuhewage">Thilan U Hewage</a></div><p class="ds-related-work--metadata ds2-5-body-xs">Colombo Economic Journal (CEJ), 2023</p><p class="ds-related-work--abstract ds2-5-body-sm">The Sri Lankan apparel industry has transformed itself into a high-end value chain manufacturer within a short period of time. This study explored the influence of noneconomic factors on productivity, competitive and comparative advantages as the influencing factors on the development of the sector. A thematic assessment of nine leading apparel exporters was conducted. The findings reveal that the productivity, competitive and comparative advantages were effectively synergized by focusing on external (non-economic) factors, such as: physical and psychological wellbeing of employees, buyer loyalty, quality of ancillary and supporting services, industry attitude, social responses, ethical supply sourcing, and organizational culture. Further, the success story of the apparel industry began when the journey was turned around from the brink of disintegration and collapse owing to the ingenuity of a few industry leaders who showed courage, innovativeness, and developed strategy to fight back as a collective body. However, there has not been an adequate support from policy establishments. The study envisages that the findings will be helpful for future developments in the apparel industry as well as for designing appropriate policies supporting the industry.</p><div class="ds-related-work--ctas"><button class="ds2-5-text-link ds2-5-text-link--inline js-swp-download-button" data-signup-modal="{"location":"wsj-grid-card-download-pdf-modal","work_title":"Impact of Non-economic Factors on the Development of the Apparel Sector in Sri Lanka","attachmentId":115715966,"attachmentType":"pdf","work_url":"https://www.academia.edu/120626567/Impact_of_Non_economic_Factors_on_the_Development_of_the_Apparel_Sector_in_Sri_Lanka","alternativeTracking":true}"><span class="material-symbols-outlined" style="font-size: 18px" translate="no">download</span><span class="ds2-5-text-link__content">Download free PDF</span></button><a class="ds2-5-text-link ds2-5-text-link--inline js-wsj-grid-card-view-pdf" href="https://www.academia.edu/120626567/Impact_of_Non_economic_Factors_on_the_Development_of_the_Apparel_Sector_in_Sri_Lanka"><span class="ds2-5-text-link__content">View PDF</span><span class="material-symbols-outlined" style="font-size: 18px" translate="no">chevron_right</span></a></div></div><div class="ds-related-work--container js-wsj-grid-card" data-collection-position="6" data-entity-id="58934990" data-sort-order="default"><a class="ds-related-work--title js-wsj-grid-card-title ds2-5-body-md ds2-5-body-link" href="https://www.academia.edu/58934990/The_Role_of_Price_and_Cost_Competitiveness_in_Apparel_Exports_Post_MFA_A_Review">The Role of Price and Cost Competitiveness in Apparel Exports, Post-MFA: A Review</a><div class="ds-related-work--metadata"><a class="js-wsj-grid-card-author ds2-5-body-sm ds2-5-body-link" data-author-id="13687341" href="https://independent.academia.edu/MeenuTewari">Meenu Tewari</a></div><p class="ds-related-work--metadata ds2-5-body-xs">SSRN Electronic Journal, 2000</p><div class="ds-related-work--ctas"><button class="ds2-5-text-link ds2-5-text-link--inline js-swp-download-button" data-signup-modal="{"location":"wsj-grid-card-download-pdf-modal","work_title":"The Role of Price and Cost Competitiveness in Apparel Exports, Post-MFA: A Review","attachmentId":73104544,"attachmentType":"pdf","work_url":"https://www.academia.edu/58934990/The_Role_of_Price_and_Cost_Competitiveness_in_Apparel_Exports_Post_MFA_A_Review","alternativeTracking":true}"><span class="material-symbols-outlined" style="font-size: 18px" translate="no">download</span><span class="ds2-5-text-link__content">Download free PDF</span></button><a class="ds2-5-text-link ds2-5-text-link--inline js-wsj-grid-card-view-pdf" href="https://www.academia.edu/58934990/The_Role_of_Price_and_Cost_Competitiveness_in_Apparel_Exports_Post_MFA_A_Review"><span class="ds2-5-text-link__content">View PDF</span><span class="material-symbols-outlined" style="font-size: 18px" translate="no">chevron_right</span></a></div></div><div class="ds-related-work--container js-wsj-grid-card" data-collection-position="7" data-entity-id="72532401" data-sort-order="default"><a class="ds-related-work--title js-wsj-grid-card-title ds2-5-body-md ds2-5-body-link" href="https://www.academia.edu/72532401/Ready_made_Garment_Exports_from_Sri_Lanka_SAMAN_KELEGAMA">Ready-made Garment Exports from Sri Lanka SAMAN KELEGAMA</a><div class="ds-related-work--metadata"><a class="js-wsj-grid-card-author ds2-5-body-sm ds2-5-body-link" data-author-id="52573816" href="https://independent.academia.edu/SKelegama">Saman Kelegama</a></div><p class="ds-related-work--metadata ds2-5-body-xs">2009</p><p class="ds-related-work--abstract ds2-5-body-sm">With the phasing out of the Multi-Fibre Arrangement (MFA), the Sri Lankan economy, highly dependent on ready-made garment exports, has become vulnerable to the changing global trading system affecting this industry. In such a global environment, strengthening the competitiveness of the industry has become imperative for Sri Lanka if it is to remain as one of the suppliers of choice in major markets. The paper highlights the strengths and weaknesses of the industry and shows the steps that have been taken to address the latter. Additional steps taken to select specific garment products according to past performance and global positioning for further improvement and promotion are also highlighted. The paper also suggests some strategies to cope up with the new global challenges.</p><div class="ds-related-work--ctas"><button class="ds2-5-text-link ds2-5-text-link--inline js-swp-download-button" data-signup-modal="{"location":"wsj-grid-card-download-pdf-modal","work_title":"Ready-made Garment Exports from Sri Lanka SAMAN KELEGAMA","attachmentId":81423687,"attachmentType":"pdf","work_url":"https://www.academia.edu/72532401/Ready_made_Garment_Exports_from_Sri_Lanka_SAMAN_KELEGAMA","alternativeTracking":true}"><span class="material-symbols-outlined" style="font-size: 18px" translate="no">download</span><span class="ds2-5-text-link__content">Download free PDF</span></button><a class="ds2-5-text-link ds2-5-text-link--inline js-wsj-grid-card-view-pdf" href="https://www.academia.edu/72532401/Ready_made_Garment_Exports_from_Sri_Lanka_SAMAN_KELEGAMA"><span class="ds2-5-text-link__content">View PDF</span><span class="material-symbols-outlined" style="font-size: 18px" translate="no">chevron_right</span></a></div></div><div class="ds-related-work--container js-wsj-grid-card" data-collection-position="8" data-entity-id="120626733" data-sort-order="default"><a class="ds-related-work--title js-wsj-grid-card-title ds2-5-body-md ds2-5-body-link" href="https://www.academia.edu/120626733/Middle_Class_to_Rescue_the_Apparel_Sector_in_Sri_Lanka">Middle Class to Rescue the Apparel Sector in Sri Lanka</a><div class="ds-related-work--metadata"><a class="js-wsj-grid-card-author ds2-5-body-sm ds2-5-body-link" data-author-id="27118906" href="https://cmb.academia.edu/tuhewage">Thilan U Hewage</a></div><p class="ds-related-work--metadata ds2-5-body-xs">International Conference on Management and Economics, 2022</p><p class="ds-related-work--abstract ds2-5-body-sm">Having begun as an unskilled labour-intensive mass-production, the apparel industry in Sri Lanka transformed itself into one that caters to high-end value chain manufacture in a relatively short time period. During its period of transition since the phasing out of the Multi-Fiber Agreement (MFA), which, de facto, provided a shield against its inherent competitive disadvantage viz-a-viz its competitors, since its inception in the 1970s, demanded extraordinary structural interventions within and outside the industry if the sector to survive. Though the sector's earning capacity is around US$5 billion per year, which is about 0.25% of the world revenue within the apparel sector, the industry is planning to achieve a revenue goal of US$8 billion per year by 2025. According to JAAF (Joint Apparel Association Forum of Sri Lanka), apart from stable policies and labour priorities, improving productivity is the most effective way of achieving these goals. This research explored the influence of Total Factor Productivity (TFP), a widely used economic factor in many similar empirical studies. The analysis of regression coefficients obtained by processing cross-sectional data through a multiple regression Cobb-Douglas production function suggests that higher TFP gains are mostly associated with medium-sized enterprises, the middle class in the sector, compared to small and large-sized organisations. The study envisages that the research findings will provide insights to pursue appropriate state policies that could unravel the true potential of the industry as a growth driver and a broad industry diversification catalyst.</p><div class="ds-related-work--ctas"><button class="ds2-5-text-link ds2-5-text-link--inline js-swp-download-button" data-signup-modal="{"location":"wsj-grid-card-download-pdf-modal","work_title":"Middle Class to Rescue the Apparel Sector in Sri Lanka","attachmentId":115716046,"attachmentType":"pdf","work_url":"https://www.academia.edu/120626733/Middle_Class_to_Rescue_the_Apparel_Sector_in_Sri_Lanka","alternativeTracking":true}"><span class="material-symbols-outlined" style="font-size: 18px" translate="no">download</span><span class="ds2-5-text-link__content">Download free PDF</span></button><a class="ds2-5-text-link ds2-5-text-link--inline js-wsj-grid-card-view-pdf" href="https://www.academia.edu/120626733/Middle_Class_to_Rescue_the_Apparel_Sector_in_Sri_Lanka"><span class="ds2-5-text-link__content">View PDF</span><span class="material-symbols-outlined" style="font-size: 18px" translate="no">chevron_right</span></a></div></div><div class="ds-related-work--container js-wsj-grid-card" data-collection-position="9" data-entity-id="87605322" data-sort-order="default"><a class="ds-related-work--title js-wsj-grid-card-title ds2-5-body-md ds2-5-body-link" href="https://www.academia.edu/87605322/Facing_the_Future_Challenges_of_the_Sri_Lankan_Apparel_Industry_An_Approach_based_on_Porters_Diamond_Model_for_the_Competitive_Advantage_of_Nations">Facing the Future Challenges of the Sri Lankan Apparel Industry: An Approach based on Porter's Diamond Model for the Competitive Advantage of Nations</a><div class="ds-related-work--metadata"><a class="js-wsj-grid-card-author ds2-5-body-sm ds2-5-body-link" data-author-id="2695530" href="https://ousl.academia.edu/SamuelAriadurai">Samuel Anbahan Anbahan</a></div><p class="ds-related-work--metadata ds2-5-body-xs">Journal Paper, 2015</p><p class="ds-related-work--abstract ds2-5-body-sm">Gaining competitiveness in the quota free trade has become a driving force for the apparel companies to adopt changes in technology and organizations to enhance productivity. While global expansion of the apparel industry historically has been driven by trade policy, by 2005, the Agreement on Textiles and Clothing (ATC) by the World Trade Organization had phased out many of the quotas that had previously regulated the world apparel industry. This caused a tremendous change in the global geography of apparel manufacturing and trade, and a restructuring of company strategies seeking to realign their manufacturing and sourcing networks to accommodate new economic and political realities. This change has brought other key factors for country competitiveness to the forefront, including labour costs, productivity, and competencies. Countries where the cost of labour is low are emerging as leaders in the lower-value assembly segments of the value chain, while countries with higher labour cost are being forced to upgrade into higher-value segments, such as branding and design that rely on high-quality human capital to maintain their competitiveness. As a result, skills of the work force in the apparel industry will become increasingly important element for developing economies to maintain and upgrade their positions in the global apparel value chain. The purpose of this study is to investigate the history of Sri Lankan apparel industry and challenges it faced in different eras and based on the experience gained propose recommendations to face the futuristic challenges of the world apparel trade based on the diamond model for competitive advantage of nations as proposed by Michael Porter.</p><div class="ds-related-work--ctas"><button class="ds2-5-text-link ds2-5-text-link--inline js-swp-download-button" data-signup-modal="{"location":"wsj-grid-card-download-pdf-modal","work_title":"Facing the Future Challenges of the Sri Lankan Apparel Industry: An Approach based on Porter's Diamond Model for the Competitive Advantage of Nations","attachmentId":91768688,"attachmentType":"pdf","work_url":"https://www.academia.edu/87605322/Facing_the_Future_Challenges_of_the_Sri_Lankan_Apparel_Industry_An_Approach_based_on_Porters_Diamond_Model_for_the_Competitive_Advantage_of_Nations","alternativeTracking":true}"><span class="material-symbols-outlined" style="font-size: 18px" translate="no">download</span><span class="ds2-5-text-link__content">Download free PDF</span></button><a class="ds2-5-text-link ds2-5-text-link--inline js-wsj-grid-card-view-pdf" href="https://www.academia.edu/87605322/Facing_the_Future_Challenges_of_the_Sri_Lankan_Apparel_Industry_An_Approach_based_on_Porters_Diamond_Model_for_the_Competitive_Advantage_of_Nations"><span class="ds2-5-text-link__content">View PDF</span><span class="material-symbols-outlined" style="font-size: 18px" translate="no">chevron_right</span></a></div></div></div></div><div class="ds-sticky-ctas--wrapper js-loswp-sticky-ctas hidden"><div class="ds-sticky-ctas--grid-container"><div class="ds-sticky-ctas--container"><button class="ds2-5-button js-swp-download-button" data-signup-modal="{"location":"continue-reading-button--sticky-ctas","attachmentId":70150706,"attachmentType":"pdf","workUrl":null}">See full PDF</button><button class="ds2-5-button ds2-5-button--secondary js-swp-download-button" data-signup-modal="{"location":"download-pdf-button--sticky-ctas","attachmentId":70150706,"attachmentType":"pdf","workUrl":null}"><span class="material-symbols-outlined" style="font-size: 20px" translate="no">download</span>Download PDF</button></div></div></div><div class="ds-below-fold--grid-container"><div class="ds-work--container js-loswp-embedded-document"><div class="attachment_preview" data-attachment="Attachment_70150706" style="display: none"><div class="js-scribd-document-container"><div class="scribd--document-loading js-scribd-document-loader" style="display: block;"><img alt="Loading..." src="//a.academia-assets.com/images/loaders/paper-load.gif" /><p>Loading Preview</p></div></div><div style="text-align: center;"><div class="scribd--no-preview-alert js-preview-unavailable"><p>Sorry, preview is currently unavailable. You can download the paper by clicking the button above.</p></div></div></div></div><div class="ds-sidebar--container js-work-sidebar"><div class="ds-related-content--container"><h2 class="ds-related-content--heading">Related papers</h2><div class="ds-related-work--container js-related-work-sidebar-card" data-collection-position="0" data-entity-id="58934988" data-sort-order="default"><a class="ds-related-work--title js-related-work-grid-card-title ds2-5-body-md ds2-5-body-link" href="https://www.academia.edu/58934988/Post_MFA_Adjustments_in_Indias_Textile_and_Apparel_Industry_Emerging_Issues_and_Trends">Post-MFA Adjustments in India's Textile and Apparel Industry: Emerging Issues and Trends</a><div class="ds-related-work--metadata"><a class="js-related-work-grid-card-author ds2-5-body-sm ds2-5-body-link" data-author-id="13687341" href="https://independent.academia.edu/MeenuTewari">Meenu Tewari</a></div><p class="ds-related-work--metadata ds2-5-body-xs">SSRN Electronic Journal, 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