Dynamic Capability helps Upgrading Bangladeshi Apparel Firms in the Global Value Chain: Knowledge Spillover Perspective

Tarikul Islam, Mohammad Bakhtiar Rana

Research output: Chapter in Book/Report/Conference proceedingConference contribution


The study investigates the knowledge spill-over from TNCs to supplier-firms in the apparel industry in Bangladesh in which the dynamic capability of the entrepreneurs and the absorptive capacity of the employees have been found to be critical. These enable firms to upgrade their position from CMT (cut-make-trim) to ODM (own-design-manufacturer) and OBM (own-brand-manufacturer) stage in the global value chain. This is a sign to make a move from static efficiency to dynamic efficiency that ensures downstream upgradation. Using case study method on ten firms from both TNCs and supplier-firm’s side the study explores four fundamental factors such as national level infrastructure and institutional support, firm level infrastructure and resources (tangible), visionary leadership, and managerial & technical efficiency that lead such upgradation in the value chain process. The study further argues that close relationship between TNCs and supplier-firms with visionary leadership directly stimulate the knowledge spill-over and upgradation.
Original languageEnglish
Title of host publication4th Aalborg International Conference
Publication statusPublished - 2012


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