Determinants of supply chain effectiveness during economic slowdown – An exploratory study of the Indian Textiles Cluster

Abstract

This paper aims at studying the functioning of the supply chain in the garment cluster. It identifies key factors that contribute to the effective functioning of supply chain network and practices undertaken to can withstand adverse economic situations. Moreover, it was analysed the payment of dividends to the industry in terms of better business performance. This paper uses a case based exploratory research methodology, which aims to understand the cause and effect relationship between the variables influencing the supply chain network. A comprehensive literature review was undertaken and logical reasoning was applied to propose the hypotheses and the conceptual model. Case studies from various developing nations were considered and a wide variety of supply chain models have been carefully studied to propose the constructs. This has led to the development of a model which is flexible to with stand economic crisis and at the same time effective and more robust enough to support the functioning of the various nodes in the garment supply chain network. This study to the best of author’s knowledge have not been undertaken in the garment cluster in a developing nation. The implications of this study is bound to give much needed support and leverage to the frail and underperforming garment cluster which is a major contributor of Gross Domestic Product and employment generator for the growing middle class in these developing nations.