Title: Manufacturing complexity and inter-firm coordination: evidence from the textile-exporting firms of Pakistan

Authors: Umar Burki; Arnt Buvik

Addresses: School of Business and Faculty of Social Sciences, University College of Southeast Norway, P.O. Box 235, 3603 Kongsberg, Norway ' Faculty of Logistics, Molde University College-Specialized University in Logistics, P.O. Box 2110, 6402 Molde, Norway

Abstract: This study explores the concept of manufacturing complexity relating to textile fabrics and examines whether the interplay between manufacturing complexity and specific assets enforces inter-firm coordination in international textile procurement relationships. It also accentuates the role of turnkey suppliers in international value chains. The research findings demonstrate that the combined presence of manufacturing complexity and supplier held specific assets leads to higher inter-firm coordination that is crucial for achieving order compliance. Moreover, the results indicate that inter-firm coordination is highly effective in mitigating the prospect of opportunistic behaviour in international procurement relationships. By describing the vital procedural techniques and aesthetic features that are involved in manufacturing a textile fabric order, this study provides valuable insights about manufacturing complexity. Further, the empirical findings demonstrate that international buyers need closer coordination with their key suppliers to mitigate performance ambiguity regarding order compliance for complex customised products.

Keywords: manufacturing complexity; MAFC; textile fabrics; inter-firm coordination; turnkey suppliers; buyer-manufacturer relationships; order compliance; textile industry; Pakistan; exporting firms; procurement relationships; international value chains; key suppliers.

DOI: 10.1504/IJPM.2017.082790

International Journal of Procurement Management, 2017 Vol.10 No.2, pp.227 - 247

Received: 20 Nov 2015
Accepted: 05 Feb 2016
Published online: 12 Mar 2017 *

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