Competition & Change

This article investigates an example of variance from the Varieties of Capitalism literature in the case of a longstanding partnership between a major British food retail multinational company and the Union of Shop, Distributive and Allied Workers (USDAW). We argue that it can be seen as a corporate attempt to institutionalize conflict and engage the energies of the employees in achieving corporate goals in a situation of high union membership density and recognition in the UK retail industry. The findings underline the importance of sectoral diversity within national capitalist economies in the context of increased internationalization and the significant role still played by labour even in a liberal market economy such as the UK.

This article seeks to broaden our understanding of the phenomenon of global production sharing and to explore policy options for developing countries for engaging effectively in production networks, through a case study on the export production hub in the State of Penang, Malaysia. The findings uphold Penang as a unique example of marrying development strategy with emerging opportunities for global production sharing. The state government of Penang has not only attracted major multinational enterprises in the global electronics industry but also helped them become deeply rooted in the economy through a well-designed investment promotion and development strategy.

This article examines changes in global commodity chains in the apparel industry, most notably how supply-driven innovations are linked with changing consumer (demand-driven) behaviour. It begins with a discussion of apparel manufacturing as a quintessentially labour intensive, low capital sector that has a long history in advanced economies. In recent decades, however, two forces have resulted in changes in this industry. First, increased liberalized trade regimes (MFA phase-out) have reduced quotas on apparel exports and imports, encouraging emerging economies to embrace this industry as part of their export-led growth strategies. As a consequence, much of apparel manufacturing has shifted to these emerging economies. Second, Western retailers have increasingly pushed supply chain rationalization and improved channel integration to force manufacturers to be more responsive to cost, quality and speed of delivery requirements. Shortened turn-around time for manufacturers now complements low price as the essential features for sub-contracting and it provides retailers with opportunities to sell inexpensive, fashion-orientated goods. Innovations associated with fast fashion are discussed, particularly how some retailers have combined supply chain rationalization with fashionable product offerings that meet volatile consumer preferences. The interaction between consumer identity formation and retailer strategies is discussed in detail, providing an analysis of the interdependency of both demand for and supply of products. Finally, the article uses examples of two major retailers, Zara and H&M, to illustrate how strategic differences within the fast fashion model reflect variations in global commodity chain restructuring.

In this article we explore expatriate managers as international boundary spanners and problem solvers in promulgating knowledge exchange in multinational companies (MNCs). Theoretical perspectives on agency, expatriation and MNCs connect notions of individual volition with expatriation interactions and organizational outcomes. This conceptualization questions the exaltation of individual excellence in the earlier heroic perspective on the expatriate. Rather, interculturally competent, strategically localized expatriate managers address recurring global–local tensions in everyday interactions with the host country subsidiary staff. The expatriates' boundary spanning, problem solving and knowledge exchange enhance the global integration, national responsiveness, and worldwide innovation and learning concomitant with the transnational form of the MNC.