Volume 7, Issue 2, Fall 2011

Identifying Organizational Distinctive Competence by Business Mapping in a Global Textile Complex

Rudrajeet Pal Doctoral Candidate, Textile Management The Swedish School of Textiles [email protected]

ABSTRACT

The three-dimensional perspective along product, process, and supply chain, of any organization is essential for providing a holistic perspective for business portfolio mapping. Relating organizational business success, in terms of economic performance, for any company in the Global Textile Complex, according to their distinctive competencies – innovation and/or specialization is critical to understand the routine/pathway to be followed by building the fundamental blocks of 3-DCE for driving success. The paper develops a matrix for business competency mapping to streamline the organizations according to their pattern of distinctive competence deconstructed along the 3-DCE domain. Eighteen of the 25 surveyed companies recording a profit build-up in the last 5 years, had their success deconstructed along different combinations of product, process and supply chain attributes. It is argued that innovation and/or specialization are the routines to be successful, analysed subsequently through developed statistical models. Any firm not adjudged to be innovator and/or specialist in some respect cannot be successful long term. This is critical in identifying myriad of distinctive organizational competencies and success factors for all business architectures and deduce success pattern in it. A failure to do so can essentially lead firms running out of long term success as the remaining 7 respondent firms reflected.The research seems to be exemplary to identify and relate firm strategies to their critical success factors and devise solutions for the future.

Keywords: Organizational business mapping, Textile Value Chain, Supply chain management, 3-Dimensional concurrent engineering (3-DCE), Innovation, Dynamic capability development

1. Introduction trends in the industry can be classified into increasing shift of production to low cost The European Textile, Clothing and Fashion regions, emergence of retailers in Industries (mentioned as TCF Industries dominance, and restructuring from labour- from now onwards in the paper) with the intensive to knowledge-driven approaches. associated enterprises have undergone The TCF industries responded to these substantial change over the past few decades competitive pressures by adopting to, due to the heavy price competition from the predominantly, three main strategies Asian low-cost region – driven substantially (Ludwig et al., 2009) viz. (i) cost-oriented by the wheels of globalization. The major approach – by relocating production and

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sourcing more into low-cost countries, (ii) strategy are prescribed for more practical innovation-oriented approach – through and business-related restructuring. efforts in innovation in areas of technical & specialty textiles, fashion & branding, Schuh (2002) summarized the reaction by quality improvements, and product & the TCF sectors to the pressures of market diversification and (iii) productivity- globalization into six reference strategies: oriented approach – by increasing design strategy, market leader strategy, production flexibility based on technology. lateral strategy, innovator strategy, Considering these main changes and drivers technology focus strategy, and oligopoly in the TCF sectors, five principal adjustment strategy; each placed between two different strategies (IFM, 2007a, 2007b) viz. (i) brand success factors classified under four broad and design strategy, (ii) partner strategy, (iii) domains of product innovation, industry-retail strategy, (iv) subcontracting manufacturing competence, brand and strategy, and (v) technological leadership market access, and supply chain competence, as in Figure 1.

Figure 1. Competitive Strategies (Roesgen, 2003)

Success factors and hence company’s long-term business success lies in strategies can be very individual with determining the market forces in the external diverse categories for differentiation. environment (so-called market-based view) However, in the lines of Porter (1990), to identify the key opportunities and threats companies succeed in globalized markets for the development of potential success either by perceiving a new basis for factors in the future business climate. competing – by exploiting new opportunities Choosing a particular trajectory for – innovation, and/or by finding better means performance, a company needs to support its for competing in old ways i.e. by strategy with the related success factors to specializing in what it is doing. Porter fulfil and defend it and thus avoid fuzzy (1990) emphasized that every successful alignment (Roesgen et al., 2003). But as enterprise employs strategies that are industries and, hence companies embedded different from each other yet there is an in it, are stamped by many processes with underlying mode of operation in character different characteristics, requirements and and trajectory that make them fundamentally competencies the success factors are myriad similar. As opined by Mintzberg (1998), – even though assimilated under the four

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broad domains, as in Figure 1. This more (ii) Develop a matrix to classify/map explicitly necessitates a proper mapping of individual enterprises based on their the enterprise to determine the existing distinctive competence and business skeleton to know the current orientation to explore the reason strategies and devise future strategies eyeing behind its possible successful the drivers of market forces (Fine, 1998). performance. Fine (1998) corroborated this from the perspective of three-dimensional concurrent 2. Global Textile Complex engineering (3-DCE), related to the key areas of product, process and supply chain Mapping TCF value chains is relatively views of the entire business process of any complex owing to the diversity in business enterprise to deliver successful performance. portfolios, competencies & capabilities, Interpretations from the research (Roesgen success measures etc. of the embedded et al., 2003) suggested that critical success firms, due to inherent modularity of textile factors for any enterprise are also positioned and apparel products and assorted in the domains of product, process and functionalities leading to diverse processes. supply chain (3-DCE) competence. Thus, At this point it is quite critical to define the mapping is essentially based on taking the extended organizational value chain along product or process view of an organization various levels, as a Global Textile Complex in the entire supply chain. The advantages of (Dicken, 2003, Kunz et al., 2005), which mapping the organizational business model will provide a notion of the different tiers of permit a company to be more precise about the network. its distinctive competencies and to concentrate on a set of product-process- The textile complex is the combination of supply chain alternatives. textile-related businesses that supply soft goods to the world population. Soft good is The present research work is aimed to do the classified primarily on their end uses: following: apparel, household goods and industrial goods (Kunz et al., 2005). More recently (i) From the network perspective, this classification has been done into fashion identify how mapping extended apparels, furnishings, specialty textiles or organizational value chain industrial goods, and functional wears. (identifying the organizations, Figure 2, explicitly characterizes the tiered products & technologies and extended value chain model of Textile, processes & capabilities involved in encompassing many industries – Chemical, the supply chain) is beneficial. Textile, Clothing, and Fashion Retail.

Figure 2. Global Textile Complex

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This view of any organization in the value business excellence, product, process & chain is essential to generate a business supply chain innovation, specialization competency mapping vital to understand its through volume-variety competencies, key success factors and differentiated make-buy decisions, etc.; discussed and strategies. A similar mapping of the analyzed in detail in the next section of the extended value chain from the capability paper. This is supported through a survey on perspective would essentially provide an Swedish TCF firms representing various understanding of the competency levels of the Textile Complex, chosen development and interaction along the chain considering their diverse business formats, and to potentially develop adjustment to relate their organizational competencies strategies for the future situations. to the framework for organizational mapping, to locate the factors behind their 3. Basis of the New Matrix successful performances. The questionnaire for the survey is adopted to relate to the Multi-dimensional supply chain mapping to concepts behind the development of the identify the organizational process matrix. Statistical analysis is conducted of capabilities, products and technologies was the responses to determine the relationships introduced by Fine (1998). This essentially constructed. Two exploratory company case helps to understand the critical roles played studies are also conducted to support the by different organizations in the Global research validity. Primary response is Textile Complex, both, at the network and obtained from the companies through individual levels their orientation and interviews of appropriate top management distinct competencies for successful personnel who have the relevant knowledge performance in the extended value chain. related to the context of the survey and the Distinctive competencies that each right perspective of the company’s business organization should identify and exploit is portfolio. This is followed by a response to essential to generate advantages over an articulated questionnaire of similar kind competitors to viably map the current for comparable validation of the interview organizational position according to the data through data triangulation (Denzin et matrix to, possibly, determine the general al., 1994; Yin, 2003). factor behind its success; as expected in the present research. This is aimed at 5. Organizational Competency determining the building blocks of Mapping developing dynamic capabilities and critical pathways to be followed along innovation It is imperative to understand that successful and specialization to lead organizational competency/capability development is based success. on two primary drivers: by being different and exploring new opportunities through 4. Research Methodology innovation and by representing better value by exploiting existing capabilities through The paper addresses the need to devise a specialization. As Porter (1990) opined, ‘It matrix for organizational mapping of firms is essential not only to innovate but sustain it in the TCF industries according to their through relentless improvements or competencies/capabilities based on the upgradation’. Today’s innovation, then, broad product, process and supply chain either modifies into improved innovation of perspectives of 3-DCE broadened into the future or into specialization for efficient mapping of extended value chain. The tomorrow. Successful organizations can theoretical framework of the matrix is based hold their winning position based on on a deductive approach developed through innovation and/or specialization – dynamic extensive review and co-relation of different enough to innovate or create a more supply chain concepts and strategies for specialized and efficient way of doing

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things. Combining innovation and position, core competencies and key success specialization along the domains of product, drivers (if any) by deconstructing their process and supply chain – the three performance. Practical accounts of fundamental agents in the system - gives organizations like Zara (an agile supply realistic mapping of the organizations in chain innovator + specialist and product terms of capability and strategic position. innovator) or Walmart (a high variety-low Figure 3 classifies organizations in the volume product specialist + process Global Textile Complex on the basis of their specialist) etc. and their business portfolios key distinctive competencies in business and in earlier related researches are exemplary in attempts to map them along the matrix, validating the basis of the matrix, as essentially to determine their strategic proposed.

Figure 3. Matrix for organizational competency mapping

6. Deconstructing the matrix classifying product and process innovations as the most demanding and critical sectors 6.1 Innovation under the European Union Project for future success. Over the years, several Successful organizations have innovation organizations have demonstrated their working along all stages, both inside the success stories based on either incremental firm and outside in its value chain. Porter innovation through ‘better, faster, cheaper’ (1990) considered that companies succeed in ways of introducing minor changes or international markets by implementing acts through discontinuous innovation by of innovation to achieve competitive complete transformational change into new advantage. In the broadest sense, this could products (Sheth et al., 2002). Based on a be perceived in designing of products, correspondence of Mike Todaro, of the processes and/or in organizational aspects American Apparel Producers’ Network (single company or network) conferred as a (April, 2005) with Wal-Mart, he postulated precondition for the survival of the Wal-Mart to be even more successful in the European Textile, Apparel and Fashion coming years because of their history of Industries Ludwig et al. (2009). EURATEX innovations – processes, products, formats, (2006), the European Technology Platform – technology, and geography. Their capacity established in 2004 – formulated a new to think big and beyond incremental changes paradigm for future development of the by creating sudden strategies of innovation European textiles and clothing industries

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to disrupt traditional businesses is indeed typically shown their unique identity and significant (Kunz et al., 2005). degree of innovation according to the business and target market portfolio and The present research identifies product requirements. innovation characteristics to include a wide array of activities ranging from researching 6.1.1 Product Innovation new fabrics and styling trends to the creation of new designs, patterns and samples to Product innovation, in the broadest way, can transformational development of new be defined as ‘the development of completely products with distinctive unique new products, changes in design of functionalities. Gore-tex products of W.L. established products, or use of new Gore & Associates or trademark fabrics like materials or components in the Nomex, Teflon or Lycra by DuPont, etc. manufacturing of established products’, in illustrates the well-known trade brands short any new or altered products (White et having promulgated their success through al., 1988). Based on this classification, revolutionized product innovations and Figure 4 highlights different distinguishing consistent, breakthrough creativity. The fast degrees or intensities of innovation efforts to fashion retail brands like Zara, H&M or Top systematically structure all levels of product Shop etc. and the luxury brands like developments and innovation pertinent to Burberry, Gucci or Armani etc. have TCF firms.

Figure 4. Different classes of Product Innovation

The classes of innovation are graded from firms are W.L. Gore Associates or Du Pont Level I to IV, based on the degree of etc. intensity ranging from transitional change to Any new design of an existing product range transformational change from existing with certain incremental developments or variety of products. Organizations can be marginal changes or improvements is engaged in different degrees of product categorized as Class I innovation innovation, as well. A product innovator or (particularly considering a change in size or product innovating firm can be buyer-driven colour in fashion apparels) or Class II if it is – innovating through branding and fashion associated with change in the existing model like Zara, a fast fashion innovator or a or launch of a new model in the subsisting luxury haute couture like Louis Vuitton or range of product. The myriads of new Armani. These firms have innovations designs - styles, colours, fabrics etc. mostly design- or fashion- led. On the other launched every season by the fashion hand, higher degrees of technical product companies and more definitively associated innovations can be seen in producer-driven with redesigning of the shape, feel, colour textile value chains in the form of specialty etc. of the product can be termed as Class I- textiles along the fields of material science, & II- product innovations (referred as chemistry, or engineering (Ludwig et al., marketing innovation by OECD in the Oslo 2009). Some prominent examples of such Manual, 2005). Class III innovations are associated with some new textile consumer

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good or industrial products outside the and technical expertise, equipments for existing product range but in the existing developing new products and/or software or domain of technology. by changing or inventing the process itself.

A good example of this differentiation is Considering the product modularity and illustrated by categorizing jersey knit fabrics increasing role of retailers in the Global with diverse ranges of patterns and styles as Textile Complex, myriads of processes are Class I- & II- product innovations while associated with the TCF firms categorized knitting fibres of meat compound into either as manufacturing (spinning, weaving, continuous materials can be classified as a knitting, cutting, garmenting etc.) or non- Class III type product innovation manufacturing (marketing, logistics & considering new product development distribution, packaging, retailing etc.), outside the existing product range but under value-adding (spinning, dyeing/printing, the same product technology (knitting). garmenting etc.) or non value-adding Class IV innovations are typified, in this (distribution, inventory carrying etc.), or context, as technological innovations even as labour-, capital-, or knowledge- requiring new knitting concepts. Global intensive (Ludwig et al., 2009). In the paper, work-wear & professional clothing brands we classify process innovation or ‘who can like Hard Yakka (Hard Yakka, n.d.) or be called a process innovator?’ into four Dickies (Dickies Work Wear, n.d.) with classes/categories viz. (i) Class I: process their commitment to innovative work-wear management innovation, (ii) Class II: fabric technology and breakthrough design modification of existing processes classifies itself at such higher levels of (technology, equipment, and/or operation), innovation. Product innovation is a (iii) Class III: redesigning existing distinctive force in determining success for processes, and (iv) Class IV: new process the production- or technology- driven developments. organizations like W.L. Gore, where innovation is more functional in the form of Class I innovations highlight small breathable Gore-Tex fabrics, its medical improvements in existing sub-processes products, and other cutting-edge innovations through planning and monitoring of process with diverse product lines making it one of performances to enhance customer the most innovative companies in United satisfaction by meeting the requirements. States (Deutschman, 2004). Schoeller Textil Workflow management and document or AG is another exemplary firm which has knowledge management techniques like developed pioneering new textile trends introduction of electronic data interchange developing top products which improved (EDI) and information systems (IS) can be protection, special clothing comfort and classified as Class I type process innovation durability (Schoeller Textiles AG, n.d.). for decreasing lengthy processing times and inherent complexities. Simple process 6.1.2. Process Innovation interchanges in the supply chain pipeline (interchanging processing stages) can be OECD in the Oslo Manual (2005) defined adjudged as minor innovations affecting process innovation as, ‘the implementation firms’ process efficiency as well. On the of new or significantly improved production other hand, Marimekko, a Finnish clothing or delivery method.’ Fine (2000) company, has been quite innovative in conceptualized process development to be bringing back the old technique of silk- related to three major aspects; process screen printing by hand on cotton generating technologies and equipments, manufacturing non-uniform repeating lines to create systems’ development, and operations attractive designs (Melaugh, 2008). Such systems design and layout. This includes production techniques could embark significant changes in process technology prominent Class II innovations through

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process modifications in technology and Production System (UPS) developed by operations. Eton Systems (Eton Systems Inc., n.d.).

New process developments like the use of The paper highlights different classes of nanotechnology or employing techniques process innovations in firms along from molecular engineering to improve technology, equipments, and/or operations fabric performance, and the creation of considering it essential for organizational smart fabrics etc. has been classified as business portfolio mapping. Class III innovations considering that these technologies were not invented exclusively 6.1.3 Supply Chain Innovation for TCF sectors but were incorporated after their established benefits and viabilities to Supply chain (SC) design is an essential other industries like electronics and aspect in supply chain management pharmaceuticals. According the concerning the structure of the supply chain, classification method developed, a smart its configuration, resource allocation, textile developed using this Class III type information sharing, and processes at process innovation could, however, be a different stages (Chopra et al., 2004). revolutionary New Product Development (NPD). A prominent example in this Fisher (1997) aligned the product category is Nano-Tex (Nano-TexTM, n.d.), a characteristics and SC design on a strict leading fabric innovator providing either/or relationship based on the aspects of nanotechnology-based textile enhancements demand predictability, manufacturing focus, for commercial and residential interiors. lead-time focus, inventory strategy, supplier This relentless process innovation by selection, and product design strategy. Finer incorporating nanotechnology to transform aspects of the framework were proposed by the molecular structures of fibres and create Fine (2000) into developments and decisions fabrics offering unsurpassed performance related to supply chain architecture and and comfort is a mode of redesigning the logistics/coordination systems. Design of technology to revolutionize the textile supply chain architecture embraces industry. However, in the product decisions on whether to make or buy innovation domain Nano-Tex is a true Class products based on choosing what processes IV innovator. Another excellent example of to outsource to suppliers and what to control Class IV process innovation is the 1972 - on its own as a core aspect (Fine et al., revolutionary garment dyeing technique. 1996). This requires the right choice of This technical and operational process supplier base in the extended supply chain innovation, by Benetton, in manufacturing for strategic sourcing, and negotiating garments first and colouring later (form contracts of supply chain relationships. postponement) until demand information Structural relationships in the Global Textile became available was a success due to Complex were opined by Gereffi et al. obvious cost savings by delaying addition of (2005) into different types of governance expensive dyestuffs, better customer service, patterns. A control on these aspects is increased sales by having customer-desired critical for supply chain innovators. Another stock available, and fewer mark-downs key aspect of innovative supply chains is (Dapiran, 1992). Yet another application- related to the logistics and coordination based innovation of Class IV is the decisions included inventory, delivery, invention of the shuttle-less loom, though marketing, and information sharing to the associated technology of a projectile or support the ongoing operation of the supply jet was known much earlier. Perhaps a chain. By inter-relating the key concepts of perfect example of a Class IV type process supply chain development as discussed by innovation across the domains of operation, eminent authors, the paper diagnoses the technology and equipment is the Unit relevant fields for supply chain innovation.

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The focus on supply chain design for designing its supply chain architecture and organizational mapping is a critical aspect relationship, and coordination decisions. For for measuring success but with myriads of H&M, a Swedish fast fashion retailer, and SC designing aspects it is rather complex to the German clothing retailer Karstadt, the locate the exact parameters associated with core strategy is a mix of super-efficient SC one’s differentiated supply chain. Critical management, logistics, and branding. H&M mapping of each value chain is essential to represents a classic story of outsourcing its reveal the position and hence the corporate production to low-cost countries and strategy of the enterprises. Supply chain maintaining an efficient network of innovation is characterized into two broad suppliers mediated by its production offices categories viz. (i) supply chain architecture to negotiate between its internal buying in designing the extended supply chain, department and large network of choosing the interdependencies according to independent suppliers. Its centralized sourcing decisions: choosing firms in the logistics and warehouse system, close supply chain, make/buy decisions: and coordination of the procurement staffs with contractual dynamics: structuring the production offices, intelligent use of ICT relationship among SC members, and (ii) tools, purchasing flexibility and overall a logistics/coordination system in developing central governing model, has incredibly core capabilities along SC processes – reduced the lead time and improved logistics inventory, delivery, marketing & sales, IS to have a lightning-fast turnaround speed of etc. just 20 days, making it a truly unique supply chain innovator (EMCC, 2004). Big specialty chains like Zara, Benetton, and H&M and hypermarkets like Wal-Mart have 6.2 Specialization been instrumental in designing very innovative supply chains emphasizing Most organizations like to think of strategic control over most of the major themselves as being particularly good supply chain functions. Zara has hit on a relative to their competitors in certain areas. formula for supply chain success defying the They successively develop certain conventional wisdom, by designing, distinctive competence in products, producing and distributing in just fifteen processes and/or supply chain rather than days through a unique ‘fast fashion’ system. simply being based on innovation, to narrow Zara’s vertically integrated value chain has the focus of the business unit’s activities and espoused business leadership through greatly enhance the chance of success for creativity, innovation, design, fast market the organization (Hayes et al., 1979a). response (Inditex, 1999) illustrating its Global textile value chains are still driven, to classification (in the paper) as a SC a large extent, by cost efficiency, high innovator. The Inditex buying centre in standardization of products and processes, Beijing completely controls the raw material and the optimal use of international labour sourcing, booking flexible production by relocating production to low-cost areas capacities with its suppliers while the rest of (Ludwig et al., 2009). Moreover, there is the supply chain activities, both in relentless onslaught of competition in the knowledge and capacity, are controlled turbulent market scenario which demands internally; ranging from the product sufficient specialization by exploiting designing process to centralized existing capabilities. Prominent examples of warehousing, cutting, finishing, some big companies which have suffered a merchandizing and retailing. Zara operates decline, losing out in the competition to its internal logistics and coordination with specialize are Kmart, GAP, and Marks & the exclusive sewing assembly cooperatives Spencer etc. Kmart, a retailing giant of the quite proactively (INSEAD, 2002). This 1980s, has lost out the battle to Wal-Mart, highlights its comprehensive control in unable to compete with the latter’s brutally

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efficient cost-cutting techniques and low with high flexibility and quality and/or prices (Thomas et al., 2009; Bhatnagar, specialization in own innovative product 2004). M&S, on the other hand recorded a range. According to the product-process major setback in 1998, as suggested by matrix described by Hayes et al. (1979a, Merrill Lynch, due to the mismatch that 1979b, 1984), low volume-high variety existed in the traditional nature of its supply products are one-of-a-kind products chain and its fast fashion product line emphasizing maximum performance based requiring fairly rapid turnaround (INSEAD, on the related competitive priorities (Leong 2002). All these are noteworthy examples to et al., 1990) - quality, delivery speed and signify the need to specialize across 3-DCE dependability, and product mix flexibility domain. for specialization. A typical example of low volume-high variety product specialist is 6.2.1 Product Specialization Tailor Store (Tailor Store Sweden AB, n.d.) in Sweden, specialized in manufacturing Products have several characteristics that tailor-made made-to-measure shirts meeting influence the manufacturing process type, individual customer requirements. Along the the SC design, and the planning system other end of the combination are the more (Selldin, 2005). Competitive priorities flow-oriented products with high product establish that companies can compete in a demand volume and standardization but wide array of aspects besides the price of the limited in product mix (Selldin, 2005). product like cost, quality, delivery Enterprises specialize in delivering such performance and speed, volume flexibility products by competing on the basis of cost and product mix flexibility. Product and volume flexibility. The general mass- specialization classified in terms of variety market manufacturers of commodity or and volume varies between the extremes of standardized products are mostly high low volume-high variety products generally volume-low variety product specialists with high margins and high volume-low relying on performance attained through variety products generally with low margins cost minimization through economies of can be considered key to render success to scale. However, most of the big brand many firms thus making it sn inevitable manufacturers, marketers and retailers domain of the competency matrix. operate with a hybrid strategy reaping high margins from both low volume-high variety In this domain of product specialization, seasonal fast-fashion products and also from companies seek to succeed by choosing the high volume-low variety continuous or some niche strategy (low volume-high basic products. variety) or high-capacity strategies (high volume-low variety) (Fine, 1998). However, 6.2.2. Process Specialization a strategy reaping high margins from high variety-high volume or having a hybrid Process specialization in many ways leads to portfolio of both low volume-high variety superior organizational performance, in products and high volume-low variety terms of the value drivers such as increased products has been an alternative, especially, speed, lower cost, higher quality, more for the supply chain dominators like Wal- innovation or value addition (Rubman et al., Mart, Zara or H&M who tend to offer wide 2009). In a recent study by Kurt Salmon product range to maximize their Associates (KSA), analysis of 101 leading contributions and profits from the business. retailers outperforming in the retail and apparel industry, it has been generalized by The dominant competitive mode in case of categorizing the major processes in the value low volume-high variety product chain in terms of these value drivers specialization rests on the laurels achieved according to the benefit level. The paper through customized design of niche products highlights this framework in all process

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linkages in the SC network prioritized paradigm. Product strategy and lifecycle according to the enterprises’ desired benefit decisions are two critical elements in terms of speed, cost, quality, and influencing supply chain designs and innovation or value addition. Adoption of specialization. For functional products best demonstrated practices for process Fisher (1997), characterized as low variety- efficiency by implementing one value driver high volume with low margins, the need to or the other or combining them would lead eliminate wastes, including time, is critical to process specialization in terms of the four for leading efficient supply chains (Womack classified criteria viz. (i) cost efficiency, (iii) et al., 1996). The demand for specializing in quality level, (iii) responsiveness or speed, cost reduction measures, level scheduling, and (iv) value addition. minimizing wastes and inventory has been pivotal in improving business performance Many textile and apparel enterprises, mainly (Stratton et al., 2003). This can be in the low-cost production regions of the characterized into efforts to minimize costs world have specialized in cost-efficient and improve quality. Typical example of production processes and manufacturing such a lean traditional apparel value chain is techniques to be profitable in their business. M&S based on extensive supplier network, Retailers and marketers in United States and run by the buying team with ‘state of the art’ Western Europe, like Wal-Mart, Kmart etc., logistics system to coordinate the dominating the global commodity chains warehouses and overseas manufacturing through high variety-high volume products facilities. The stores’ network is in majority have positioned themselves to bring the owned by M&S to collaborate the shops, lowest possible prices to its customers, warehouses and offices through electronic driven by economies of scale from a vast data interchange (EDI) (INSEAD, 2002). base of nearly 21,000 suppliers. Brand M&S has been extremely efficient in retailers like H&M and JC Penney are also, controlling its supply chain through predominantly, running leagile supply specialization in coordinating a lean value chains based on moderately high quality and chain. medium-range cost model to generate business success. On the other hand, the On the other hand, for innovative products, luxury brands and haute couture like Louis organizations must acquire the capability to Vuitton, Gucci and Burberry have built on react to volatile demand fluctuations their high brand identity through considering low volume-high variety in the specialization in value adding processes for assortment. The high stock turn requirement exclusive products. Value of such luxury caters the need for agility in operations to brands have been built on intangible brand respond quickly to increasing pressure on image and exquisite product quality. It is lead time (Hiebelar et al., 1998, Hewitt, critical to identify the exact value driver for 1999). It is required to sustain the extended the exact process for mapping organizational enterprise in such volatile pressures by success through process specialization. acting quick and adopt the best agile practices. Specialization through quick 6.2.3. Supply Chain Specialization response (QR) has been leveraged by Zara as a key aspect of its speed-to-market The product-process specialization is related strategy as a critical success factor to designing the supply chain and devising (Kansupada et al., 2008). However, it is appropriate strategies to match the nature of quite rigid to view supply chains strictly as demand for products (Fisher, 1997). Focus either lean or agile rather than promulgating on the variety-volume combination of the concept of differentiated supply chains product characterization and its (Van Hoek, 2000; Mason-Jones et al., 2000; corresponding value drivers have led to Naylor et al., 1999) combining lean and identification of the right supply chain agile approaches by decoupling agile

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strategies and leanness. We determine the the firms, in general, across the 3-DCE essentiality of specializing in a supply chain domains and relate it to their business by, generally, being lean/leagile in producer success, reported in terms of increasing driven value chains to maximize efficiency profit-ratio build-up in the last 5 years. The and agile in buyer driven chains dominated 5-step Likert scale representing ‘very by the retailers and brands. low’/‘not important’/‘not at all’ to ‘very high’/‘critically important’/‘completely’ was 7. Competency Mapping and transformed to a scale of 1 to 5. A scale Organizational Success number of one corresponds to the lowest value and the highest value corresponds to a A survey was conducted on Textile, value of five. Similarly, the dependent Clothing and Fashion Enterprises in Sweden variable of organizational success, measured representing various levels of the Textile in terms of profit ratio (profit/turnover), Global Complex as in Figure 2. A mailing from ‘declining’ to ‘much better’ was also list of nearly 200 TCF firms was developed transformed into the same scale. by contacting TEKO (TEKO, n.d.) - the business and employers' organization for the A model has been constructed using Swedish textile and fashion companies - and statistical softwares, PHStat2 and Minitab searching through Europages directory. A (Version 16.0). The model construction uses convenience- and judgement- based non- the following variables: probabilistic sampling techniques were combined for selecting the companies based - Z denotes organizational success; in on the following selection criteria: all the terms of build-up of profit-ratio companies were Alla Bolag (public listed in (2005-2009). Sweden), were common in both the lists and - X1 denotes the product innovation had a proper contact detail convenient for characterized by brand value of the mailing survey. The questionnaire design product (X11), new product design method was chosen in an orderly and (X12), new model (X13) or material specific manner by conducting a pilot test (X14), better functionality (X15) and/or with one of the case study companies. new product technology (X16). Usable responses were gathered from 25 - X2 denotes different classes of process respondents out of the 200 mailed ones by innovation in the organization December, 2009 making a response rate of denoting (process management 12.5% which was quite justifiable for such innovation (X21), modification, wide-ranged exploratory research survey redesigning or development of and subsequent validation of the matrix for technology(X22), equipment (X23), or organizational competency mapping (Figure operation (X24). 3). A testing is conducted by formulating a - X3 denotes supply chain innovation hypothesis as follows: averaged over the Likert ratings of SC innovation attributes; sourcing Hypothesis (H1): Economically successful decision (X31) make/buy decision Swedish TCF firms innovate and/or (X32) SC relationship decisions (X33) specialize across the 3-DCE domain and and SC coordination (X34). Non-successful firms do not innovate and/or - Y1 is a dummy variable representing specialize across these competency matrix product specialization of the domains. organization as follows: Y1 = 1 if product specialization is positioned on The semi-structured questionnaire for the the variety-volume scale as high survey broadly focuses on the 3-DCE variety-low volume, low variety-high perspectives of product, process and supply volume, high variety-high volume, chain; aimed to evaluate the positioning of

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hybrid of any two or unique coordination (Y35). The increasing customized products; else 0. consideration of sustainability has also - Y2 is also a dummy variable been considered as an important representing process specialization attribute of supply chain specialization characterized as follows: Y2 = 1 if the (Y36). organization is specialized in its engaged processes through higher Initially, the variance inflationary factor value addition, more responsiveness, (VIF) for all the independent variables (X1, higher quality, more cost efficiency X2, and X3, Y1, Y2, and Y3) are calculated to and/or more innovation; otherwise 0. determine the collinearity of the variables. - Y3 denotes supply chain specialization Table 1 show that all the variables are able averaged over the Likert ratings of SC to provide unique information regarding specialization characteristics of a lean, organizational success and the effects of the agile or leagile producer-/buyer- variables on success (Z) can be easily driven supply chain. They are distinguished. Analysis of the firms with classified as the basic characteristics success measure 1-2 (declining or lower) of lean and agile supply chains yielded VIFs > 5, for X3, Y2, Y3 (Fisher, 1997) as collaborative product (collinearity), thus neglecting these development (Y31), cost minimization variables, from consideration, in the Best- (Y32), quick response (Y33), quality of Subsets regression model 2 (Table 3). service (Y34), and flexibility &

Table 1. Results for degree of collinearity of success (Z) to 3-DCE components of innovation (X) and specialization (Y)

Z X1 av. X2 av. X3 av. Y1 Y2 Y3 av. VIF* 1.35 1.04 1.25 1.31 1.39 1.28 VIF** 2.31 2.42 5.09 8.31 3.52 7.47 * Calculated for all 25 respondents ** Calculated for 8 respondents showing declining/lower profit-ratio in last 5 years

The best-subsets approach is being used to F-tests of 0.03, 0.032, 0.045, 0.03, 0.048, evaluate all the possible multiple regression 0.05 and 0.05 for Models 1-7 respectively models for a given set of independent suggest that there exists sufficient linear variables to determine the possible models relationship between organizational success for success. Table 2 show the positive (in terms of profit-ratio build) and at least results for the test at 95% confidence level one of the 3-DCE components of the value 2 and choosing the validity of only those chain (in each model) for (H0: β = 0; no 2 models whose Cp statistics is less or equal to linear relationship; HA: β ≠ 0; sufficient k+1 (k = number of parameters) (Berenson linear relationship exists) as we reject H0 (p- et al., 2009). The models listed as Model 1-7 value of F-test < Fα= 0.05). Thus we argue in Table 2 represents all the considerations that dynamic capability development by having minimum difference between the building across different combinations of fitted regression model and the true model. product, process and supply chain attributes An adjusted R2 value ranging from 23-28 % through the routines of innovation and/or shows the acceptance of several equally specialization is a pillar/building block for appropriate model (Model 1-7), to broadly achieving business success for many TCF relate success (Z) to different combinations organizations. of the 3-DCE attributes. The p-values of the

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Table 2. Best Subsets regression model for Success (Z) to 3DCE components of innovation (X) and specialization (Y)* Adjusted Standard Number Variables Model Cp k+1 R2 R2 Error (σ) 1 3 X1X3Y1 3.79 4 0.34 0.25 1.35 2 3 X3Y1Y2 3.95 4 0.34 0.24 1.36 3 4 X1X2X3Y1 4.81 5 0.37 0.25 1.35 4 4 X1X3Y1Y2 3.94 5 0.39 0.28 1.32 5 5 X1X2X3Y1Y2 5.26 6 0.42 0.27 1.33 6 5 X1X3Y1Y2Y3 5.69 6 0.41 0.25 1.35 7 6 X1X2Y1Y2Y3 7 7 0.43 0.24 1.36 Confidence level for regression co-efficient is 95% * For all 25 respondents

An analysis for the enterprises showing survey, relates the mapping of the consistent decline or lowering profit-ratio organizations across domains listed in Table (economic performance), according to the 3.

Table 3. Best Subsets regression model for Success (Z) to 3DCE components of innovation (X) and specialization (Y)* Adjusted Standard Number Variables Model Cp k+1 R2 R2 Error (σ) 1 1 X1 0.82 2 0.31 0.19 0.46 2 1 X2 1.91 2 0.15 0.01 0.51 3 2 X1X2 2.17 3 0.40 0.16 0.47 4 2 X1Y2 2.79 3 0.32 0.04 0.51 5 3 X1X2Y2 4 4 0.43 -0.00 0.52 Confidence level for regression co-efficient is 95% * For respondents showing declining or lower profit-ratio build-up (2005-2009)

The F-Test to examine the overall A stepwise regression analysis of the data relationship existing in the business model reveals that X1, X3 and Y1 i.e., product for the firms showing declining/lower profit- innovation, supply chain innovation and ratio (as in Table 3) suggested p-value of F- product specialization to be the key test of 0.15, 0.33, 0.27, 0.55, and 0.55 for requirements for being successful. Matching models 1-5 respectively. Considering the the different degree of product innovations 2 hypothesis as (H0: β = 0; no linear to the extent of aligning the supply chain 2 relationship; HA: β ≠ 0; sufficient linear architecture, accordingly, is essential for relationship exists) we do not reject H0 (α= successful businesses along with 0.05) as p-values of F-tests > Fα. Moreover, competence in exploiting the capabilities of a considerably low value of adjusted R2 in producing the exact product variety. all cases sufficiently questions the acceptance of the generated models to 8. Discussion and Analysis represent business portfolio mapping of the organizations showing consistent Interpreting the results of the business decline/lower profits. It is argued that the models as in Table 2, organizational success business models developed for representing can be interpreted along the basis of the success does not hold true for the matrix as in Figure 5. organizations showing signs of declining/lower profit margin.

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Figure 5. Representation of success models along the organizational competency matrix

It is evident that efficient and innovative high volume products mainly concentrated firms are able to overtake their competitors on cost-efficient processes with responsive to yearn for long-term organizational distribution system relying on high quality. success (Sheth et al., 2002). Right product They sufficiently involved in innovating innovation and the right supply chain to suit supply chain either by determining sourcing the requirements have been very essential and make/buy decisions or through SC for organizations at various levels of the partnership and coordination. Among two- Global Textile Complex to gain long-term third of the firms showing their business success (Fisher, 1997). Interpretation of portfolio mapped across product and process Figure 5 suggests that there is no unique specialization, around 50% showed formula for success based on individual sufficient supply chain innovation criteria organizational capabilities, resources, also. The enterprises specializing through circumstances and opportunities. Yet it can high variety-low volume products mainly be argued that building blocks and critical concentrated on high quality and value- paths/routines for achieving business added processes with sufficient focus on success for these organizations can be innovating compliable SC coordination mapped along the 3-DCE domains achieved systems and determining supplier base for through innovation in products and apposite make/buy decisions. 16% of the conforming supply chains and then firms were mapped with similar business specializing in such product lines. Nearly models to cater success. Companies 80% of the respondent firms either showed concentrating on unique products had to considerable product innovation or supply emphasize process specialization through chain innovation or sufficient product more cost efficiency and innovations while variety-volume development competence, the full-line generalists with large product but only 50% of them demonstrated them base of high variety-high volume products simultaneously, with only 36% of them concentrated on economies of scale and recording growing profit-ratio build-up. attracted consumers through cost minimization, much like the business model The 2nd model suggested that success for the of Wal-Mart. firms was depended on specializing in product lines (high variety-low volume to The 3rd model represents business model for low variety-high volume) and matching the consistent innovators, like Gore-Tex or complementary process competencies to DuPont, relying mostly on innovation along support it. The firms analyzed to have built products and adjusting processes and supply their capability in developing low variety- chains, accordingly. These firms dominate

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their own value chain by innovating through strive for more cost minimization through new- design, models and product technology economies of scale. averaging quite high showing routines of completely revamping their business models Business Model 5 is quite similar to Model 3 and products and redesigning the processes but emphasizes simultaneous consideration like product development and marketing to of process capability development as well, conform to the requirements. These firms for efficient operations through higher value also reported considerably higher process addition, responsiveness, higher quality, or innovation, 3.7 on 5-point likert scale cost efficiency. This is instrumental in compared to the average value for all the complementing the business success Model respondents (2.21 out of 5). Along the lines 3 striving further for higher process of Fisher (1997) this also catered developing differentiation and efficiency needed to supply chain relationship and coordination. support differentiated products, services and It was evident that firms following this supply chain characteristics. Models 6 and 7 business model reported higher supply chain mostly represent business models for innovation as well. Product specialization organizations showing holistic capability based on positioning through variety-volume development through simultaneous is also essential to enhance the level of fit considerations of product, process and between the innovative product offerings supply chain designing by innovating and and specializing in it. also exploiting existing capabilities. Success Business model of organizations spanned to such organizations are brought through over product and supply chain innovations relentless innovations and then sufficiently (X1, X3) and product and process gaining competitive advantage through specializations (Y1, Y2) are anticipated to be specialization in its own business portfolio. quite similar to those following model 1 for driving higher economic performance It was quite evident that the 7 business considering process specialization a models discussed above can deconstruct prerequisite for matching to the product organizational business portfolios of volume-variety characteristics as opined by Swedish TCF firms along the building Hayes et al. (1979a, 1979b, 1984). 36% of blocks of 3-DCE attributes along the critical the all responding firms - successful by paths of innovation and specialization. It has following such business model owe to been argued that it is instrumental for the above-average product innovation (3.77) firms to generate profit and hence long- and supply chain innovation (3.86). standing economic viability thus long-term Considering the success pattern of success by simultaneous and concurrent organizations fitting model 4, many considerations of designing across these 3- companies had lower degrees of product DCE domains. innovation related to just modifications in design to change product lines, specially the 9. Case Studies medium-sized retailers and brands or some manufacturers of textile products along the In the paper, exploratory researches based Global Complex. Their considerable level of on studying the fit of real-business portfolios SC innovation (3.78) through specific to the distinctive competency framework of sourcing and make/buy decisions is to match two companies has been conducted to the product characteristics and business strengthen the validity of the concept. portfolio. Product and process specialization However, it should be noted that the case is also inherent to such model to be efficient. studies are unique and are not longitudinal Small- and medium- sized retailers have to over time, meaning that the drivers of gain sufficient margin through proliferation success/failure can change depending on the of its product line controlling the value- changing business climate. In-depth adding processes while the manufacturers interviews were carried out with the

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company key persons representing the decision making, normally having scheduled senior management followed by proper meetings with suppliers, twice annually, documentation and study of a number of along with systemic upgrading of quality for internal documents and reports. future development. In a similar way, Alpha exchanges its technical know-how with the 9.1 Case 1: Alpha suppliers, often, taking up joint R&D efforts and investments for NPD. It engages in Alpha is a Swedish high-performance woven modifying or upgrading the existing fabric manufacturer with its clients as technologies and equipments quite suppliers to the automotive industry and frequently, within less than a year and also sportswear producers. The company carries redesigning operations and related out nearly 95% of its production in-house in management processes like line 2 owned production plants resulting in a management and vendor management to complete control of its fully-integrated align the processes to the demands of its production process (weaving-dyeing- high-tech products and supply chain. Being finishing-coating-quality control). The high- in the high-end segment of the market technology driven product portfolio (fabrics) Alpha’s order winners/value drivers can be is mostly characterized by high quality and categorized as quality and innovation rather new product developments with optimized than cost. developmental clock speed from 2-36 months depending on the innovation Alpha is familiar to its supplier’s processes, intensity. Low levels of product their capacity and their turn-key suppliers modifications are quite continuously done, but considering its fairly selected supplier however, the high-tech product designing base of big firms it seldom associates itself and development evolves in every 1-3 years. to their capability development. Sharing of Alpha has shown moderate profit margin information with the suppliers is constant (around ~16% in 2009, and ~5% in 2010). but not on a real-time. In some cases, along the length of the value chain Alpha, with its In the extended value chain, Alpha operates suppliers and customers maintain a fairly closely with its suppliers and customers integrated relationship but not under the providing technical fabrics with high-end same ownership giving it a quasi- innovation and functionalities. Upstream it hierarchical relationship though one of the conducts its business by sourcing directly parties usually is dominant and governs the from the European suppliers without seeking chain (mostly the retailer). However, Alpha the help of intermediary trading agents is fairly independent to choose its own (except for its supplier from the far-east), suppliers and customers and in a way however on the buyer-side Alpha maintains determines the design of its supply chain on a sales network through agents working its own. However, inspite of being fairly particularly for its business with small and independent in determining its own supply medium customers. It prefers to work chain partners and hence its structure, Alpha directly with its big customers, without any has a generic lean production-driven value intermediaries. From the perspectives of chain leveraging multiple strategies to stay transnationality (Dicken, 2003), Alpha competitive and innovative. Driving a fairly neither has international offices or high-tech value chain, innovation and subcontracted producers nor owned overseas productivity are on the fore front of its operations but it works closely with its strategic build-up trying to be better and suppliers and customers by jointly sharing smarter in investing ‘less for more’. This knowledge, skills and creativity to develop calls for sufficient lean strategy by the high-grade fabrics. For its R&D purposes, company by relying on forecasts of raw or the company engages into process semi-ready materials in stock for its low coordination and cooperation with shared variety-high volume products. Preferentially

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it employs a manufacturing strategy deliver (according to Figure 1) with limited to order or dye to order, accordingly. delocalization. This eventually illustrates Considering inventory management by the Alpha’s distinctive competence across the company itself, this is a key issue. Till domains of innovation of high-tech products recently, the company has been instrumental (X1) and supply chain architecture (X3) and in making structural deals in making specialization through production of low acquisition of its close competitors in the variety-high volume products (Y1) through Scandinavian market. Protection of its quality manufacturing competence (Y2) and technology has been quite essential in an efficient lean/leagile supply chain (Y3) as developing the company as a brand name to shown in Figure 6. This highlights the its customers based on quality, innovation company management’s consideration of and long-term relationship. success factors across the organizational business mapping matrix based on dynamic Alpha being independent in capacity and capability development by combining knowledge in its production has proven to innovation and specialization. follow technological leadership strategies

INNOVATION SPECIALIZATION High-tech product development (High Low variety-high volume (High Priority) Priority) Process modifications (Low Priority) Value-added product development (High Priority) High quality manufacturing (High Priority) Value-added marketing (Moderate Priority) One-of-kind SC structure (High Priority) Lean/leagile production (Moderate Priority) Fairly unique make-buy decision (High Priority) Collaboration (High Priority) Figure 6. Organization business competence mapping of Alpha

9.2. Case 2: Enterprise Beta product line. The company utilizes a strategy with high degree of customization, Another company Beta (a Swedish e- but is also striving to gain scale advantages retailer) having its own production facilities of a high volume production strategy. The in Asia (as a sister concern) is fairly level of adaptive and collaborative integrated in the value chain engaged in customization (Pine et al., 1999) for Beta sourcing, designing, manufacturing, facilitates sufficient collaborative product marketing and e-retailing on its own to development efforts with a fast clock speed enhance its integrated e-retail business. The of product evolution in terms of design, company operates as an apparel model and NPD, averaging around 2 manufacturer through its own international months, in general. production facility in some low-cost Asian base, considering tailor-made customized Beta has a fairly integrated production shirts as its main product range. Its customer process owned by it which has undergone selections are realized during the design sufficient shift from employing hand- phase, before the shirt enters the production stitched traditional tailoring techniques to a line. This ensures higher degrees of line system divided into 8-step production functionality and design adjustments operations. Recently, the line system was possible. High brand image, design and modified into stitching teams forming model are inherent characteristics of Beta’s assembly lines equipped with minimal

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workforce to increase the process efficiency, This makes Beta a dominator in its own better workflow management and minimize supply chain controlling the most of it and cost. The company also maintains a fairly ensuring a very wide arc of integration. It large and reliable base of fabric and trim has a fairly agile demand-driven value chain suppliers. Beta is a transnational leveraging multiple strategies to stay organization with a quasi-hierarchical competitive and specialized. Responsiveness relationship with its fabric suppliers is the key word in Beta’s strategic build-up (integrated relationship but not under the striving for success through quick response, same ownership) and it is sufficiently collaborative product customization and involved in joint product development with quality production processes. Maintaining customers. The company chooses its strategic inventory sufficiently upstream as suppliers base by considering the production greige fabric Beta preferentially employs capacities, technological know-how and package to order or make to order manufacturing specialization of its partners. strategies, accordingly. This caters tasks for However, the company has an effective configuring the supply chain capabilities and communication system ensuring design actively. organizational management including tasks like web development, order receipt & Beta being successful in its responsiveness inquiry management, product development, value chain of made-to-measure product line and process management carried out under has proven to follow lateral strategies the head-office. Production process for Beta (according to Figure 1) with high customer emphasizes product quality characteristics involvement. This deconstructs Beta’s and code of conduct issues to be of prime distinctive competencies across the domains importance. Two quality checking sections of innovation in own production-controlled are incorporated in Beta’s process viz. fabric supply chain (X3) and customized unique control and final quality control, where products (Y1) through responsive and individual shirt is thoroughly inspected quality manufacturing competence (Y2) for before final packing. Efficient and high- specialization into an leagile supply chain. quality unit-batch processes ensure All these have sufficiently resulted in an production lead time of just 2 days from increase in profit margin of the company greige fabric to final dispatch of product from just 1% in 2007 to ~12% in 2009. through third-party logistics. A distribution Figure 7 shows Beta’s organizational time of around 1-4 weeks is common for its success along the business mapping matrix products, directly to the distribution centre. as shown in.

INNOVATION SPECIALIZATION Unique designs & models (Moderate Priority) Unique Customized Products (High Priority) Efficient workflow mgmt. (Low Priority) Responsive manufacturing (Moderate Priority) Quick Response (High Priority) Value-added marketing (Moderate Priority) Fairly integrated SC structure (High Leagile buyer-driven (Priority) Priority) Information sharing (High Priority) Figure 7. Organization business competence mapping of Beta

10. Conclusion & Further Work staggering variations, overwhelming effects The textile/clothing pipeline is in itself of fashion and unique pipeline structures; complex due to shorter product life cycles, affected massively by globalization. While

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some organizations prosper in such a global product innovation, supply chain innovation perspective, many failed to manage and and product specialization are the most disappeared totally. Why have such important requirements for internal holistic developments taken place and how did some alignment for being successful. firms manage to be successful, while others For the 7 firms recording a decrease/decline collapsed? in financial performance transcended into organizational failure were not aligned It is apparent that though organizations may internally along the 3-DCE domains. have/had myriads of competitive factors to Moreover, the case studies highlighted how drive success, still there is some underlying business mapping of organizations help to commonality to their business success based prioritize organizational activities, locate the on a broader – holistic, adaptive, targeted strengths and characterize them along and synergistic – approach. It is indeed product, process and supply chain attributes critical to understand these performance (3-DCE) to develop into critical factors for dimensions and dynamic capabilities, success. deconstructed to differentiated recipes of success factors for developing winning The overall reliability of the work could strategies. The attempt to relate have been further improved by choosing a organizational business success for any larger sample size of respondents for company in the Global Textile Complex, in proving the claim - relating economic the paper, according to their distinctive success to innovation and/or specialization. competencies – innovation and/or However, considering the exploratory nature specialization – based on a three- of devising a matrix - the research seems dimensional view of product, process and reasonably pertinent with a detailed content supply chain is exemplary and critical to analysis, statistical analysis followed by in- understand the routine/pathway to be depth case analysis for triangulation. of followed by building the fundamental blocks making a piloting of more enterprises and for driving successful performance. The their extended value chains to corroborate analytical part of the work concludes each class identified in the matrix for through a model building, relating business successful performance. Scopes for further success to the realms of innovation and related research lies in conducting extensive specialization. 18 out of the 25 surveyed survey of the enterprises to relate their companies that recorded a build-up in profit- success or failure in terms of profit ratios ratio in the last 5 years, had their success and other competitive priorities to deconstructed across simultaneous and achievements or drawbacks in the domains concurrent considerations of product, of designing products, processes, and supply process and supply chain attributes of the 3- chains to devise success factors, and analyze DCE domain. It is evident that more them in diverse market scenarios. efficient and innovative firms are able to overtake their competitors to yearn for long- REFERENCES term organizational success. A failure to understand the organizational business Berenson, M.L., Levine, D.M., & Krehbiel, portfolio, deconstructed in terms of the 3- T. (2009), Basic Business Statistics: DCE attributes of innovation and Concepts and Applications, 11/Edition, specialization can essentially lead to Prentice Hall, ISBN: 9780136032601. enterprises running out of long-term success. Bhatnagar, P. (2004), The Kmart-Sears deal, Such classification locates the organizations Retrieved 5 February 2010, from correctly in the matrix to determine their http://money.cnn.com/2004/11/17/news/ current strategic position and the required fortune500/sears_kmart/index.htm. adjustment strategies to hold success in the future. The regression analysis reveals that

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Stratton, R. & Warburton, R.D.H. (2003), Van Hoek, R.I. (2000), ‘The thesis of ‘The strategic integration of agile and leagility revisited’, International lean supply’, International Journal of Journal of Agile Management Systems, Production Economics, Vol. 85, pp. Vol. 2, No. 3, pp. 196-201. 183–98. White, M., Braczyk, H., Ghobadian, A. Tailor Store Sweden AB (n.d.), Retrieved 27 & Niebuhr, J. (1988), Small Firms` August 2009, from Innovation: Why Regions Differ, ISBN: http://www.tailorstore.co.uk/. 0853744254, Policy Studies Institute TEKO, Sveriges Textil- och Modeföretag (PSI), from (n.d.), Retrieved 5 February 2010, from http://www.psi.org.uk/publications/publi http://www.teko.se/. cation.asp?publication_id=176. Thomas, S. & Kohli, C. (2009), ‘A brand is Womack, L. and Jones, D. (1996), Lean forever! A framework for revitalizing Thinking, Simon and Schuster, New declining and dead brands’, Business York, NY. Horizons, Vol. 52, pp. 377-86. Yin, R.K. (2003), Case Study Research – Design and Methods, 3/Edition, Sage, London.

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