Strategic sourcing in the textile and apparel industry

Purpose – The purpose of this paper is to investigate performance outcomes of strategic sourcing, specifically examining how strategic sourcing affects buyer‐supplier relationship, supplier evaluation, and sourcing performance from the buying firm's perspective in the context of the US textile and apparel industry. Design/methodology/approach – This study provides an empirical investigation of a theory‐based model integrating the resource‐based view and the relational view of strategic management. The model is tested using data from 180 US textile and apparel firms by structural equation modeling. Findings – The survey results indicate that strategic sourcing significantly impacts buyer‐supplier relationships, supplier evaluation, and sourcing performance of buying companies. The study also shows that supplier evaluation significantly influences buyer‐supplier relationship. Research limitations/implications – Given that the data are from a specific industry, the generalizability of current findings to other industries may require additional investigation. Practical implications – Sourcing becomes a key strategic consideration for textile and apparel firms to sustain or improve their competitiveness. Originality/value – The study contributes to the literature by developing a research model based on a multi‐ theoretical perspective and conducting a large‐scale empirical survey in the textile and apparel industry and analyzing the model by structural equation modeling. The dynamic textile and apparel industry is a classical representation of global supply chain, characterized by the industry's significant contribution to the world economy and international trade, the extremely worldwide spread supply network, and the tremendous competition in global market. Examining strategic sourcing's influences in this important industry provides many valuable implications for industrial practitioners.