Local responses to global market pressures in the textile and apparel industry: evidence from six Northern Italian companies

Using the lenses of the Global Value Chain analysis, this paper explores the concept of upgrading and the role of supply chain (SC) management in the context of the Italian textile and clothing industry. By means of seven case studies, we highlight different upgrading trajectories, the internal and external drivers and which SC management leverages were applied. Moreover, we analyse the impacts of upgrading on supply chain performance. Results show that despite similar external and internal drivers, different forms of upgrading can occur even within the same company. Moreover, SC management practices appear fundamental not only for efficiency related upgrading but for all the forms. In conclusion, our findings show that upgrading needs to be supported by proper SC management initiatives and leading to significant impacts on the supply chain performance that, in turn, improve the financial performance.