The applicability of cluster theory to Canada's small and medium‐sized apparel companies
Abstract
Purpose
The purpose of this paper is to identify and map trends in the Canadian apparel industry (in a global context) and, through the application of Porter's models, establish strategies that could be employed by Canadian small and medium enterprizes (SMEs) in response to the move toward trade liberalisation since the phasing out of the multi‐fibre arrangement.
Design/methodology/approach
The literature review established trends in the apparel industry both in Canada and globally. Qualitative research in the form of case studies highlighted apparel suppliers' perceptions of Canada's strengths and weaknesses as a business setting and provided preliminary information on possible supplier activities which provide value and competitive advantage. The analysis of the primary data also allowed the development of preliminary questions, answers to which will further enhance the understanding of clusters and their applicability to Canada's apparel SMEs.
Findings
Canada's apparel manufacturing industry is winding down while imports are continuing to grow. At the same time, the Canadian market is not large enough to sustain all the suppliers, thus forcing those who are competitive to export, primarily to the USA, which is Canada's major apparel export destination. The morphology of related and supporting industries to apparel suppliers is changing. The findings suggest that Canada's apparel supply is becoming more of a service and less of a manufacturing industry.
Originality/value
This paper provides an understanding of Canada's position in the global apparel map and ascertains whether competitive cluster strategies exist for the Canadian apparel industry. Furthermore, it sets the stage for further research by identifying knowledge gaps pertaining to the applicability of clusters to the apparel industry and providing data and findings to bridge these gaps.
Keywords
Citation
Campaniaris, C., Hayes, S., Jeffrey, M. and Murray, R. (2011), "The applicability of cluster theory to Canada's small and medium‐sized apparel companies", Journal of Fashion Marketing and Management, Vol. 15 No. 1, pp. 8-26. https://doi.org/10.1108/13612021111112313
Publisher
:Emerald Group Publishing Limited
Copyright © 2011, Emerald Group Publishing Limited