The motivations for sourcing production offshore : a multiple case study of small and medium-sized clothing firms in Hong Kong

F.Y. Tam, K.L. Moon, S.F. Ng, Chi Leung Hui

Research output: Journal article publicationJournal articleAcademic research

Abstract

This paper studies the factors that motivate small and medium-sized clothing firms in Hong Kong to shift their production offshore, and identifies the interrelationships between these factors and firm-related characteristics, sourcing strategies, and buyer-supplier relationships. Using a multiple case methodology to study ten firms and a two-phase approach to collecting data involving, in-depth interviews and mail questionnaires, the two most important factors motivating the sourcing of production offshore are identified, as follows: (1) cost advantage of, and (2) availability of labour in, the host country. The results also show that industrial sector and firm size are the only firm-related characteristics that have an effect on the factors motivating offshore production. Furthermore, sourcing strategies and buyer-supplier relationships are sometimes influenced by these motivational factors.
Original languageEnglish
Pages (from-to)95-107
Number of pages13
JournalResearch Journal of Textile and Apparel
Volume8
Issue number2
Publication statusPublished - 2004

Keywords

  • SMEs
  • Offshore production
  • Sourcing strategies
  • Motivations
  • Buyer-supplier

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