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Dynamic capabilities in apparel manufacturing firms in the context of global value chains: the case of Vietnam

In: Upgrading the Global Garment Industry

Author

Listed:
  • Li T. Dao
  • Truong Quang Minh
  • Dinh Le Hai Ha
  • Le Thi Thai Ha

Abstract

This chapter examines the impact of the global value chain on the development of dynamic capabilities in the Vietnamese apparel export sector. Despite impressive growth rates and gradual upgrading along the global apparel value chain, Vietnamese suppliers remain largely reliant on low-cost labour and imported materials, facing the challenge of developing new capabilities to sustain their global competitiveness. Our study approaches this challenge from a dynamic capabilities perspective with the aim to understand the strategic options for Vietnamese apparel exporters to enhance their competitiveness. Based on a qualitative study of six cases, we identify two patterns of dynamic capability development and a number of GVC-dependent and home country institutional constraints. We discuss these findings, propose a blended logic of dynamic capability development, and suggest policy implications as well as future research possibilities.

Suggested Citation

  • Li T. Dao & Truong Quang Minh & Dinh Le Hai Ha & Le Thi Thai Ha, 2021. "Dynamic capabilities in apparel manufacturing firms in the context of global value chains: the case of Vietnam," Chapters, in: Mohammad B. Rana & Matthew M.C. Allen (ed.), Upgrading the Global Garment Industry, chapter 9, pages 209-234, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:19294_9
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