Apparel value chain analysis in Ethiopia: a multiple case study

Apparel value chain analysis in Ethiopia: a multiple case study | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Apparel value chain analysis in Ethiopia: a multiple case study Tesfaye Shimelis, Shalemu Sharew Hailemariam This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-3658661/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract Apparel manufacturers create value and ensure customer satisfaction for market competitiveness. This study analyses the apparel value chain in Ethiopia. The study focuses on apparel manufacturing industries around Addis Ababa using a multiple-case study approach. Data were collected using questionnaires, checklists, observations, and focus group discussions. A judgmental sampling technique was employed to select 115 respondents from prescreened case companies. Porter’s value chain model using qualitative techniques and descriptive statistics was used for analysis. The study reveals that operations, technology, inbound and outbound logistics showed high impact on firms’ performance. Marketing and sales, services, firm infrastructure, human resource management, and stakeholders have less impact. Hence, apparel industries should focus on internal activities to improve business performance. In addition, government institutions should support technology and infrastructure. Apparel competitiveness value chain analysis value chain model Figures Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Figure 8 Figure 9 Figure 10 1 INTRODUCTION The textile and Apparel industry is one of the priority subsectors in manufacturing sector and substantial contribution in the Growth Domestic Product (GDP) for economic development of Ethiopia. The government has put an effort to improve and expand the textile and apparel industry to satisfy both domestic and global market (Van der Pols, 2015 ). Studies show that the textile and apparel sector plays a vital role in the economic progress through increasing GDP, reduction of trade deficit, improving employment rate, and overall living standards (Khurana, 2018 ). However, local apparel industries are facing a big challenge to compete globally mainly due to the rapidly changing business environment, global competition, high demand of consumers, lack of innovation, market performance, quality, and technology these lead local garment industries into circumstances of low quality, low productivity, and poor competitiveness in the international market (Alderin, 2014 ). In addition, a lack of skilled manpower and other value chain inefficiencies force domestic firms not to quickly respond to new market opportunities (Vallejo and Mekonnen, 2021 ). Many researchers have studied the productivity and other problems in the Ethiopian textile and apparel manufacturing sub sector, but very few have considered value chain-related issues (Hagos et al., 2018 ). According to Roadmap ( 2020 ), strategic issues and competitiveness constraints in the Ethiopian textile and clothing value chain are poor working conditions, lack of modern IT systems, lack of a market-driven approach, outdated types of machinery diminish productivity, quality, and value, limited quantity and quality of local suppliers, poor infrastructure and Poor sector coordination with government bodies, skill gaps, and limited skilled specialists hinder productivity, quality, and value addition. These supply chain related challenges force local apparel manufacturing industries to lose customers, sales, profit, and competition in the market. Hence, implementing value chain analysis helps garment industries to analyze their works by breaking activities into strategically appropriate pieces so that they can have a complete picture of the drivers and sources of value creation for customers and to achieve competitiveness over others. To be competitive in local, and international markets the concept of value chain analysis can be broadened and should be understandable by firms, and industries. According to Porter ( 2008 ), the value chain analysis helps to evaluate competitive advantage and improvement strategies of firms. Porter’s value chain model explained the primary and supportive activities that directly and indirectly contribute to value creation and improving the competitive advantage of industries. Since Industry level value chain analysis is an effective way to study interactions of different actors in an industry (Walters and Rainbird, 2007) we focused on industry level value chain analysis. 2 LITERATURE REVIEW Value chain was first proposed by Porter ( 1985 ) and he described on how customer value accumulates along a chain of activities that lead to an end product or service. Other scholars also defined value chain by emphasizing the key activities on product or service value creation from concept to consumer and post-consumer phases or lifecycles (Kaplinsky and Morris, 2000 , Sturgeon, 2001 ). Value chain analysis tools have been used to examine core and non-core activities (Scholvin et al., 2019 , Fisher et al., 2020 ). Several frameworks have developed and applied in studying individual firms, entire industries, industry clusters, and global production networks (Zamora, 2016 ). A preliminary study on the existing challenges on different value chain-related issues has been conducted and presented in Table 1 . Table 1 Major problems found in the Ethiopian apparel sector (Roadmap, 2020 ; Van der Pols, 2015 ) From (very low = 1 to Very high = 5) level of value chain challenges Lack of appropriate technologies 4.8 Inefficient production 4.6 Inefficient logistics 4.6 Lack of competitiveness 4.5 Inadequate suppliers 4.6 Lack of qualified management 4.4 Lack of integration 4.4 Lack of skilled labour 4.4 2.1. Global value chain analysis Competitiveness in global markets is the result of efficient value chain performance of the manufacturing firms. The manufacturing sector in Ethiopia is still in the nascent stages of development, but there are visible changes in the past decade (Alderin, 2014 ). According to Diez et al. ( 2018 ), the application of value chain analysis in Sub-Saharan African countries is low and even the case is worse in Ethiopian apparel industries. Studies suggest that Ethiopian textile and apparel industries in Ethiopia should focus value chain evaluation and strengthen the linkage between value chain actors such as manufacturers, government executives, stakeholders, and higher educations to improve the value chain and competitiveness of Ethiopian firms in the local and global market (Vallejo and Mekonnen, 2021 ). 2.2. Porter’s value chain analysis model According to Tan and Zailani ( 2009 ), Porter groups the value chain functions in to primary and supportive activities where inbound and outbound logistics (Svensson, 2002 ), operations (Cheng and Johansen, 2014 ), marketing and sales (Kotler and Armstrong, 2010) and services are primary activities and procurement (Lavassani and Movahedi, 2021 ), human resource management (Woldeyohannes and Alebachew, 2020 ), technology development (De-Regt et al., 2020 ), firm infrastructure (Porter, 2008 ) are supportive activities. 2.3. Benchmarking and value chain performance The performance of a business on important customer criteria with that of the best in the market (direct competitors) to assess what should be improved is performed through benchmarking (Ran et al., 2013 ). Value chain benchmarking in the apparel industry is considered as an end-to-end, value chain performance measurement to meet final customer requirements including product availability, delivery, price, quality, and others to deliver value for customers for the benefit of both the industry, firms, and customers (Ran et al., 2013 ). According to Tarei et al., ( 2020 ), and Anselmsson and Bondesson, ( 2015 ), customer, financial, internal business and innovation perspectives are important criteria used to measure the value chain. 2.4. Conceptual framework of the study Based on literature, the conceptual framework has been developed using primary and supportive operations of the Porter’s value chain model as independent variables and level of value chain practice as a dependent variable. The framework helps to understand the value chain performance of selected apparel industries in Addis Ababa. 3 RESEARCH METHODS Multiple case studies are suitable to analyze phenomena through detailed studies and to generate a new theory or test an existing theory (Stake, 2013 ). The researchers have decided to conduct a multiple case study approach as the results of a single case study are difficult to generalize. The study targeted multiple apparel industries in Addis Ababa. According to Schoch ( 2020 ), multiple case studies were preferred to observe, describe and examine existing value chain activities of the apparel industries better than a single company. Value chain analysis requires reliable information from various value chain actors and thorough understanding of the entire functional units, and their relationship to others (Herr and Muzira, 2009 ). Hence, mixed research approach were preferred to acquire relevant and reliable information (Hellin and Meijer, 2006 ). Hence, multiple case studies with qualitative, quantitative (Kaplinsky and Morris, 2000 ), or both methods have been used. 3.1 Sampling Techniques The study was carried out in Addis Ababa, the capital and largest city of Ethiopia. The study site was selected using purposive sampling technique. Product type, proximity to the marketplace, size of apparel industries and experience in the business were used as selection criteria. The selected industries for the study are shirt manufacturing industries. According to Poulis (2013), number of companies to be included in multiple case study should be minimum of three and maximum of ten. Whereas, Schoch ( 2020 ) argues that in a multiple-case study, three to four distinct cases for comparison is possible if researchers can genuinely handle it. In this study, three garment industries such as Big-M Apparel, ASBM garment, and Haile garment were considered as representative. For known population, single population proportion formula (Krejcie and Morgan, 1970 ) was used to proportionate the sample size based on the population size of firms (Kothari, 2004 ). The samples were taken from each of the selected apparel industries. Finally, the researchers used 130 total number of respondents where 44 respondents are from Big-M apparel, 43 respondents are from ASBM industrial, and 40 respondents are from Haile garment. 3.2 Data collection and analysis techniques Direct observation and a 5-point Likert scale questionnaire were used for data collection. Quantitative and qualitative analysis were used to examine the impacts of the value chain practices. The analysis was carried out based on the variables found within the value chain activities. Direct observation, questionnaires and checklists have been used important to record the major company’s activities. 4 RESULTS AND DISCUSSIONS 4.1. Value chain practice in the case of companies Direct observations, checklists, interviews, and questionnaires were employed to assess and observe the practice of the value chain of case companies. The supply chain of the case companies was identified through interviews with the managers, marketing department, and background profiles of the case companies. Table 2 Raw material sourcing locations for the case companies Case companies Raw materials Suppliers Big-M apparel Fabric India; China Button China Label Custom made ASBM industrial Fabric Adama textile spinning factory; Kanoria textile factory; Sygndema textile factory Button <p Local market (Mercato) Label Custom made Haile garment Fabric Hawassa textile share company; Arbaminch textile share company; Ayka Addis textile factory Button Local market (Mercato) Label Custom made 4.2. Lead time of key activities The average lead time of the raw materials from order placement to final shipping depends on the quality, cost, and location of suppliers this affects the lead time. The supplier’s location plays a major role in determining the lead time of raw materials, and the final product. The following table shows the time taken by each company. Table 3 Lead time required for different activities in the case companies Description of activities Leadtime for each company Big-M ASBM Haile garment Order Placement 0 days 0 days 0 days Pre-production 10–15 days 12–14 days 12–14 days Production 15–21 days 1–2 days 1–2 days Transportation 7–10 days 7 days 7 days Total lead time 45 days 21 days 21 days 4.3. Assessment of case companies' value chain activities The value chain of the case companies was identified and described based on the observation gathered to evaluate using a Porter’s Value chain analysis model for the primary and secondary activities. 1. Inbound Logistics and procurement activities The findings from the study show that the case companies purchase their raw materials from different places. The suppliers are chosen based on their quality, quick delivery, and technical skills as per the interviews. Currently, the activities in the case companies associated with inbound logistics and procurement activities such as purchasing raw material, receiving, storing, raw material handling, transportation, and inventory control are more or less managed effectively where the minimum performance as can be seen from Fig. 2 is 80%. The response from the respondents has shown that many efforts have been done by the case companies to enhance the inbound logistics and procurement activities. Thus, the firm activities associated with inbound logistics and procurement consistently supply and feed the production room to increase their productivity and prevent stock out. This finding was also supported by other studies where the performance of the firms in terms of inbound logistics has been improved (Sultan, 2017 ). 2. Operation activities Operational activity is one of the main and critical departments in the value chain of garment industries (Porter, 2008 ). This function is responsible to convert raw materials into finished products (garments) based on the quantity of orders approved by customers. Shirt productivity of the three case companies is shown in Table 4 . Table 4 Recorded shirt productivity of the case companies Big-M apparel plc (target = 888, 8hrs per shift) Sample number Actual production Sample1 741 Sample 2 750 Sample 3 738 ASBM industrial plc (target = 712, 8hrs per shift) Sample number Actual production Sample1 624 Sample 2 645 Sample 3 614 Haile Garment (target = 816, 8hrs per shift) Sample number Actual production Sample1 746 Sample 2 723 Sample 3 718 Table 5 Quality assessment of shirt product in the case companies Sample number Total inspected Passed Rework DHU (%) Big-Mapparel 1 741 644 97 13 2 751 636 115 15.5 3 738 604 134 18.2 ASBM industrial 1 624 502 122 15 2 645 537 108 13 3 614 508 106 13 Haile garment 1 746 628 118 16 2 723 606 117 16 3 718 620 98 14 Based on the recorded data from each case company, the average non-conformance of shirt products per day were 16%, 15%, and 13.5%. This is higher than the average nonconformity of the best company and this affects the firm’s profitability and competitiveness. Operation is considered as a major activity that transforms raw materials into end products. Based on the observation the operation activities of the firms show that effectively managed through automated technologies, operator’s training, production planning, scheduling, and quality control are considered as a strong effort that enhances the operational activities of the firms. The operational activities of the case companies have a major impact on a firm’s performance and the result was also supported by other studies (Sultan, 2017 ). 3. Outbound logistics activities Outbound logistics can be seen as a part of the supply chain concerned with the distribution of finished goods to consumers. Outbound logistics plays an important role in the value chain of firms. In the case of companies, based on the agreement with the customers the firms deliver the end product for each customer to their place. Table 6 Average transportation or logistics for delivery of goods to customers Transportation Mode Deadline (Days) Road 1–3 Railway 1 -1.5 Air 0.5-1 Since the customers of all case companies are local the time required to deliver and distribute the final product at the right time to the right place was effectively managed. The existing value chain performance from the observed data shows that great efforts have been made by the case companies in the distribution and management of goods to enhance the outbound logistic activities. In the case company after the products are completed goods are packed and distributed to their customers with convenient transportation and an efficient order processing system. In general, the distribution of goods is seen as properly managed in the industry and the finding is also supported by the outcomes of other studies (Muazu, 2019 ; Sultan, 2017 ). 4. Marketing and sales activities The marketing and sales department is responsible for finding new customers, promoting products made by the factory, and receiving work orders from customers. The major challenge of the case companies is the high competition of rival companies found in that area, market penetration, and site location is difficult to find easily and accessed by customers. Cost analysis of shirt manufacturing The unit cost (in USD) of shirt products in Big-M apparel, ASBM industrial, and Haile garment was 11.32, 9.43, and 9.43 respectively. When compared with the market value, the cost of the firms was better. The variety of products produced by each case company satisfies their customers. Table 7 Product types produced in each case company Case companies Type of products Big-M apparel Shirts; Overcoat; Jacket; Polo shirt; Different types uniforms; Trouser; Skirt; Vest ASBM industrial Shirts; T-shirts; Sweater; Polo shirt; Hoodie; Underwear; Skirt Haile garment Shirts; T-shirts; Dresses; Blouse; Gowns; Trousers; Overcoat; Jacket Based on the observation and expert’s opinions the performance of marketing and sales activities are low. Even though, most of the garment factories are located around the capital city, Addis Ababa, they do not have organized marketing and sales outlets to improve accessibility to their customers. In general, the marketing and sales activities in the firms show that the firm do not pay much attention to enhance their marketing and sales activities in their value chain. Most of the local garment industries do not conduct market research and they do not follow an effective marketing strategy. There is a lack of social platforms to penetrate both the local and international markets. Due to these facts, the practice of marketing and sales activities in local garment factories is low and they cannot able to introduce their products to the potential market and reach their target consumers. 5. Service activities The service quality of garment companies in Ethiopia is poor and they have weak communication with the buyers. Most of the local garment industries only engage in transactional activities and they are not responsive customer complaints. They don’t have after sale services to their customers. Based on observations and discussions with respondents the customer policy and complaint handling system are found to be less effective in the firms. They have weak communication with buyers and the service quality is less efficient. The major problem for service activity having a low impact on firm performance is the firms don’t provide activities, such as repair, efficient service, and a good customer handling approach for their customers. To improve this and be competitive garment industries have to provide a warranty, repair, after-sales services, reliable, and fast services, and a good customer handling management system. 6. Technology development activities Technology development plays one of the most important roles in the value chain of garment industries. Apparel production currently requires the latest technologies and equipment to improve products and compete with rival companies (Wignaraja, G., 2002 ). Based on the observation, technology development was efficiently managed in the firms showing that strong efforts were done by the firms to enhance their technology development activities by establishing strong links and integration among the functional units and creating a competitive advantage. The technology development was better in Big M apparel industry compared with other two case companies.in general, the findings of the study shows that the companies have adequate technologies and equipment that support the value chain activities of the firm which ensures their competitiveness in the local and global market. 7. Human resource management activities According to the researchers' observation and interviews, the main challenge related to human resource is a high turnover of labor due to dissatisfaction on wages and incentives. From observation in the case companies, the employees have lack of skill, knowledge, experience. Firms should invest in training and skill development programs, follow standard recruiting procedures, and appropriate training practices to enhance competitiveness of the value chain related to manpower productivity. 8. Firm infrastructure activities Firm infrastructures are facilitators for the development of industries by supporting product development, and distribution channels, and carrying out the process and activities efficiently. The firm infrastructure level in the case companies needs further improvement. Power and water supply are not sufficiently supplied to the industries. Based on the data from the case companies, there are less effort to enhance their firm infrastructure activities in the value chain. The focus group discussion with companies shows that firm infrastructure is given lower emphasis in the garment industries. In this study, the inadequacy of the infrastructure has been seen as one of the major constraints on the development of the garment manufacturing industries. Despite the government effort, the infrastructure provision in Ethiopia is weak which affects the competitiveness of the garment industries. 9. Stakeholder coordination activities The relationship of the case companies with stakeholders and government is low. This is due to poor communication and data exchange on time and, there is also a lack of stakeholders and government follow up, towards promotion and facilitation of the marketing activities of the local apparel industries. According to in-depth group discussion with ETIDI experts, most of the local apparel industries have less effective communication and timely information exchange with required stockholders. The data analysis shows that collaboration and coordination of the case companies with related institutions including research institutions, higher education institutions, and government bodies are low. This shows that minimum efforts have been made by the firms to enhance their stakeholder coordination activities. Moreover, results show that the case companies should enhance their collaboration and integration with government institutions and stakeholders to be more competitive than their competitors. The result of Hagos (2018) shows that stakeholders’ participation is a crucial part of strategic management that enhances and maintains the competitiveness of garment industries by 62%. This means the result of this study shows disagreement with our study so the case companies need an improvement to enhance their collaboration and integration with government institutions and stakeholders to be more competitive than rival industries. Table 8 Summary of impact of the value chain components on each case company Value chain variables Big M apparel (%) ASBM industrial (%) Haile garment (%) Inbound logistics and procurement 80 84 86 Operation 75 83 83 Outbound logistics 86 82 84 Marketing and Sales 49 35 40 Service 46 39 35 Technology development 75 70 73 Human resources management 50 45 51 Firm infrastructure 52 49 54 Stakeholder coordination 50 38 50 As per the results found from the study, primary activities in terms of inbound logistics and procurement, operation, and outbound logistics activities were managed well in the case companies (Sultan, 2017 ). However, marketing and sales, and service activities, especially concerning conducting market research toward the taste and preference of customers, following an effective marketing strategy, and providing efficient customer service are low in the case companies (Rahayu and Nanda, 2020 ). With regards to the supportive activities, technology development has shown good performance in each case company. Whereas human resources, firm infrastructures, and stakeholder coordination have shown that they are ineffective areas, especially in obtaining skilled and experienced manpower, the inadequacy of firm infrastructure and lack of integration between firms and stakeholders need further improvement to enhance the firm’s competitiveness (Woldeyohannes and Alebachew, 2020 ; Hagos, 2018). Benchmarking of the case companies The benchmark matrix shows that the three Ethiopian apparel industries were measured based on observation and their value chain performance Metrix such as productivity, quality, SMV, cost, and lead time. Then the benchmark company was selected by considering the firm which had the best practices of shirt production/day. Table 9 Benchmark performance of the case companies Companies Value chain analysis metrics Productivity (pcs/ day) Quality (%) SAM (min.) Lead time (days) Cost (Birr) ASBM industrial 627 81.5 28 15 500 BIG-M apparel 743 82.3 30 45 600 Haile garment 729 82.55 27 15 500 The result from Table 9 suggested that Haile Garment had better performance compared to the rest of the case companies in terms of metrics such as high quality, low cost, minimum lead time, and low SMV of a formal shirt product. The remaining case companies also need to improve themselves where each one is needed to be efficient, responsive, and competitive in the market. Table 10 Garment benchmarks on value chain experience regarding foreign countries Indicators Jordan Bangladesh China Turkey India Vietnam Ethiopia Raw material Partially imported from foreign textile firms Locally produced Locally produced cotton Locally produced of cotton Locally produced of cotton Imported from other countries Partially imported from foreign textile firms Shipping time(days) 28 10–15 15 5–10 18 30 45–90 Human power High shortage of skilled and experienced labor Good availability of skilled workers and less-skilled management Lack of workers, but good availability of skilled managers Good availability of skilled workers Good availability of skilled workers Good availability of skilled workers High shortage of skilled labor and experts Labor cost (USD) 320 95 348 380 104 80 20 Product variety Wide range of textile and garment products Knitwear, denim, jersey, children’s clothing, woven, tops and bottoms Knitwear, denim, children’s cloth, woven, tops bottoms, outerwear Knitwear, denim, jersey children’s clothing, woven, tops and bottoms Knitwear, denim, children’s wear, wovens, tops, and bottoms Knitwear, denim, children’s wear, wovens, tops, and bottoms Wide range of uniforms, shirts, polo shirts, and tops Average shirt SMV (minutes) 20 17 21 19 21 20 28 Technology level Low-medium Growing fast High Medium Medium Medium Low-medium Potential for value-added production Medium-high Medium High Medium-High Medium-High Low-medium Low Potential for large order size High High High High High Medium-high Medium-high Research and development Medium Medium High Medium High Medium Low Incentive for labors High Medium High High High Medium Medium The benchmark comparison of Ethiopian garment industries with six countries using 11 criteria is provided in Table 10 . Hence, from the comparison Ethiopian garment industries have shown medium to lower performance except the labor cost. Proposed strategic improvement model The analysis of the findings from the existing performance of the value chain in the case companies has shown low performance on each primary and secondary value chain performance measures. Based of these findings, strategic solution guides to the value chain practices, final goals, and effects expected by the implementation of the actions are proposed in Table 11 . To achieve the garment industry's value chain competitiveness, these strategic solutions have been identified as being the cornerstones to enhance the value chain practices and competitiveness of the Ethiopian garment industry. Table 11 Solution model for value chain performance improvement 1. Improve employee capability through skills development Strategic approaches Target measures a. Increase the level of technical and supervisory skills Number of trained employees in the firm b. Conduct a skills gap and assessment study in the entire value chain and develop internal activity assessment metrics, standards, and training programs c. Improve HR policies, employee retention, and incentives Having a standard recruiting procedure d. Support companies in developing HR policies and practices after a comprehensive review of applicable local laws, international compliance standards, and global best practice Bonus and incentives 2. Upgrading the technological capability and maintenance service of the firms Strategic approaches Target measures a. Ensure the availability of sufficient spare parts Availability of new technologies and ensuring maintenance department in the firms b. Ensure maximum machinery and equipment c. Conduct maintenance training 3. Strengthen the development of the garment industry through coordinated action Strategic approaches Target measures a. Reinforce coordination between apparel industries and ETIDI, ETGAMA, government bodies, and universities Exchange of data with stakeholders b. Improve existing training and education and align with the industry needs Continuous relationship or engagement with stakeholders c. Improve the legal and regulatory framework relevant to the current existing garment industries and market d. Establish linkages between international investors, buyers, and local suppliers in a more systematic manner, by taking into consideration of local garment industries through: ➢ Assisting and finding new local and international suppliers and buyers ➢ Providing training and knowledge transfer from investors to enhance the relationship between investors and local firms (includes cooperative learning among suppliers; internal training to affiliates; in-plant training; etc.) 4. Product and market development through the use of trade information Strategic approaches Target measures a. Ensure easy and timely access to trade information for the garment industries Social platforms b. Create a strategic partnership with ETIDI, and ETGAMA, to gather up-to-date garment industries policy, trade, and market information, and perceive early notifications on targeted markets and products Promotion ways c. Increase firms’ capacity to fulfill local and international market requirements and to align with the current market demand and product development Market and consumer preference test d. Provide training on the modern trends of fashion design, marketing strategy, and market penetration Creativity 5. Improve the availability of raw material supply Strategic approaches Target measures a. Expand the manufacturing of textile and garment suppliers to improve the lead time of raw materials. Having long last and strategic suppliers and lead time b. Support local suppliers and expand the reach to the regional states c. Increase the availability of raw materials with the required quality by strengthening raw material producer’s capacity and creating market linkage with local and foreign suppliers. 6. Continuous quality improvement Strategic approaches Target measures a. Check each garment production process stage if it meets the defined quality standards Defects per hundred unit b. Eliminate waste and address factors that affect quality through root cause analysis c. Measure and control the process and product quality against predefined parameters Acceptable quality level d. Improve the quality and consistency of processes e. Ensure the quality management system of industries align with the international standards 5 CONCLUSIONS Competition in the textile and apparel industry brought new challenges for an emerging economy like Ethiopia. The findings from the study shows that most of the garment industries have many challenges including lack of skilled labor, capabilities, and sophisticated manufacturing systems. Due to this reason many of the textile and garment industries don’t have competitiveness in the local and international markets. The results show that primary activities in terms of inbound logistics, outbound logistics, and operation have a significant effect on firm competitiveness. However, service and marketing activities, marketing strategy, promotion, and providing an efficient service are very low. Concerning the supportive activities, technology development activity was seen as very effectively managed in the case companies. Whereas such as stakeholder coordination, firm infrastructures, and human resource management have a low impact on firm competitiveness due to the problems such as ineffective and inefficient management structures, turnover (mainly due to low wages, and unpleasant working conditions), lack of reliable suppliers, lack of new product development, low productivity and low quality of products. There is no comprehensive, and harmonized value chain policy for garment industries. Because of this shortcoming, the Ethiopian garment industry did not become powerful, and united, Even the concept of value chain analysis is not yet understood by those firms. In general, to build a successful competitive economy there is a need the Ethiopian government and all concerned bodies should work hard to create a structural, strategic, and sustainable value chain system and policy that every garment industry uses and implement. The different actors in the value chain should be trained and infrastructure development, raw material access and quality improvements, technological upgradation and market access should be the focus. Further studies can be conducted to study the entire value chain of textile and apparel industries in Ethiopia. Declarations Competing interests: There is no conflict of interest between the authors Funding • The funding source is Bahir Dar University (Thesis2022) Authors' contributions The authors have equal contribution to this manuscript. 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Working Paper Van der Pols D (2015) Business opportunity report Ethiopia textile & apparel industry Commissioned by Netherlands Embassy in Addis Abeba. CBI and Nash international BV Wignaraja G (2002) Firm size, technological capabilities and market-oriented policies in Mauritius. Oxf Dev Stud 30(1):87–104 Woldeyohannes B, Alebachew T (2020) Assessment Practices and Challenges of Training and Development at the Ethiopian Textile Industry Development Institute (ETIDI). Assessment, 68 Zamora EA (2016) Value chain analysis: A brief review. Asian J Innov Policy 5(2):116–128 Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. 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Hailemariam","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA3klEQVRIiWNgGAWjYDACCQbGA0CKh7G9AUgZWBClhQGkRYa5B0QZSBCvxYZ9RgKUSwjIz25+cOBjzmEe3pnPr274USDBwN/enYBXi8GdYwYHZ247zCM5O6fsZg/QYRJnzm7Ar0UiweAwL1CL4eyctBs8QC0GErn4tcjPSP9w+C9Qi/3NM2k3/xCjheFGjsFhRqAWxhnsx24TZYvBjZyCg73b0nkYe3LYbssYSPAQ9AvQYRsf/Nxmbc/YfvzZzTd/bOT423sJOAwBeAzAJLHKQYD9ASmqR8EoGAWjYAQBAGK0TQ8KtZc2AAAAAElFTkSuQmCC","orcid":"https://orcid.org/0000-0001-9317-7590","institution":"Bahir Dar University","correspondingAuthor":true,"prefix":"","firstName":"Shalemu","middleName":"Sharew","lastName":"Hailemariam","suffix":""}],"badges":[],"createdAt":"2023-11-24 10:55:12","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-3658661/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-3658661/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":50118531,"identity":"6ce3d59f-9cba-4423-be58-32136c17445f","added_by":"auto","created_at":"2024-01-24 19:14:41","extension":"png","order_by":1,"title":"Figure 1","display":"","copyAsset":false,"role":"figure","size":61959,"visible":true,"origin":"","legend":"\u003cp\u003eConceptual framework of the study\u003c/p\u003e","description":"","filename":"1.png","url":"https://assets-eu.researchsquare.com/files/rs-3658661/v1/dc58fead25ed1522ac9c1780.png"},{"id":50118140,"identity":"743f6039-ec29-43b8-8ccf-cc900121920a","added_by":"auto","created_at":"2024-01-24 19:06:41","extension":"png","order_by":2,"title":"Figure 2","display":"","copyAsset":false,"role":"figure","size":44303,"visible":true,"origin":"","legend":"\u003cp\u003eResponse on inbound logistics and procurement\u003c/p\u003e","description":"","filename":"2.png","url":"https://assets-eu.researchsquare.com/files/rs-3658661/v1/fcf8f6447686b07ebb40cb40.png"},{"id":50118141,"identity":"db286d03-26c3-459f-86d3-513ecd2ed6a5","added_by":"auto","created_at":"2024-01-24 19:06:41","extension":"png","order_by":3,"title":"Figure 3","display":"","copyAsset":false,"role":"figure","size":23539,"visible":true,"origin":"","legend":"\u003cp\u003eResponse on operations activities\u003c/p\u003e","description":"","filename":"3.png","url":"https://assets-eu.researchsquare.com/files/rs-3658661/v1/fb9a74ac6a7690ac45d903a0.png"},{"id":50118144,"identity":"20ea6b75-d341-445d-bc5d-7ee48467518e","added_by":"auto","created_at":"2024-01-24 19:06:41","extension":"png","order_by":4,"title":"Figure 4","display":"","copyAsset":false,"role":"figure","size":28583,"visible":true,"origin":"","legend":"\u003cp\u003eResponse on outbound logistics\u003c/p\u003e","description":"","filename":"4.png","url":"https://assets-eu.researchsquare.com/files/rs-3658661/v1/e0dfcc54aa8a5d9d2420deac.png"},{"id":50118137,"identity":"11dc6dc8-11e4-4baa-b8ba-b1db448a9bbb","added_by":"auto","created_at":"2024-01-24 19:06:41","extension":"png","order_by":5,"title":"Figure 5","display":"","copyAsset":false,"role":"figure","size":21607,"visible":true,"origin":"","legend":"\u003cp\u003eResponse on marketing and sales\u003c/p\u003e","description":"","filename":"5.png","url":"https://assets-eu.researchsquare.com/files/rs-3658661/v1/aa195ec137c51c69e1515d77.png"},{"id":50119222,"identity":"eed0d694-f54b-4aff-ab76-8393ea810cac","added_by":"auto","created_at":"2024-01-24 19:22:41","extension":"png","order_by":6,"title":"Figure 6","display":"","copyAsset":false,"role":"figure","size":22936,"visible":true,"origin":"","legend":"\u003cp\u003eResponse on service performance\u003c/p\u003e","description":"","filename":"6.png","url":"https://assets-eu.researchsquare.com/files/rs-3658661/v1/85dc2d3118ccdafcd7188a11.png"},{"id":50118142,"identity":"ff7b6c0a-00f5-443d-8cb3-0bd5824776eb","added_by":"auto","created_at":"2024-01-24 19:06:41","extension":"png","order_by":7,"title":"Figure 7","display":"","copyAsset":false,"role":"figure","size":23605,"visible":true,"origin":"","legend":"\u003cp\u003eResponse on performance of technology development\u003c/p\u003e","description":"","filename":"7.png","url":"https://assets-eu.researchsquare.com/files/rs-3658661/v1/b7e933527a51ab452e4aa98d.png"},{"id":50118533,"identity":"e0a1f581-7853-4e49-8320-f8ae05906463","added_by":"auto","created_at":"2024-01-24 19:14:41","extension":"png","order_by":8,"title":"Figure 8","display":"","copyAsset":false,"role":"figure","size":24378,"visible":true,"origin":"","legend":"\u003cp\u003eResponse on human resource management\u003c/p\u003e","description":"","filename":"8.png","url":"https://assets-eu.researchsquare.com/files/rs-3658661/v1/ae185bb4a3079fb032b4c42c.png"},{"id":50118145,"identity":"bfceb709-b116-47d8-be65-024ccef1374e","added_by":"auto","created_at":"2024-01-24 19:06:41","extension":"png","order_by":9,"title":"Figure 9","display":"","copyAsset":false,"role":"figure","size":22926,"visible":true,"origin":"","legend":"\u003cp\u003eResponse on the performance of firm infrastructure\u003c/p\u003e","description":"","filename":"9.png","url":"https://assets-eu.researchsquare.com/files/rs-3658661/v1/e1b513db7aa4d25e5931007b.png"},{"id":50118146,"identity":"ec147ae8-636c-46c0-a45d-5b27a4424aeb","added_by":"auto","created_at":"2024-01-24 19:06:41","extension":"png","order_by":10,"title":"Figure 10","display":"","copyAsset":false,"role":"figure","size":22426,"visible":true,"origin":"","legend":"\u003cp\u003eResponse on stakeholder coordination activities\u003c/p\u003e","description":"","filename":"10.png","url":"https://assets-eu.researchsquare.com/files/rs-3658661/v1/cb1aeb228c27cb8b9e87938a.png"},{"id":51457204,"identity":"cb1582fd-7fee-43a5-96b5-0a1b26a38a49","added_by":"auto","created_at":"2024-02-22 02:31:32","extension":"pdf","order_by":0,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":1512579,"visible":true,"origin":"","legend":"","description":"","filename":"manuscript.pdf","url":"https://assets-eu.researchsquare.com/files/rs-3658661/v1/c14bfc83-3510-494b-a96e-2c06892c0b14.pdf"}],"financialInterests":"","formattedTitle":"Apparel value chain analysis in Ethiopia: a multiple case study","fulltext":[{"header":"1 INTRODUCTION","content":"\u003cp\u003eThe textile and Apparel industry is one of the priority subsectors in manufacturing sector and substantial contribution in the Growth Domestic Product (GDP) for economic development of Ethiopia. The government has put an effort to improve and expand the textile and apparel industry to satisfy both domestic and global market (Van der Pols, \u003cspan citationid=\"CR32\" class=\"CitationRef\"\u003e2015\u003c/span\u003e). Studies show that the textile and apparel sector plays a vital role in the economic progress through increasing GDP, reduction of trade deficit, improving employment rate, and overall living standards (Khurana, \u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2018\u003c/span\u003e). However, local apparel industries are facing a big challenge to compete globally mainly due to the rapidly changing business environment, global competition, high demand of consumers, lack of innovation, market performance, quality, and technology these lead local garment industries into circumstances of low quality, low productivity, and poor competitiveness in the international market (Alderin, \u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2014\u003c/span\u003e). In addition, a lack of skilled manpower and other value chain inefficiencies force domestic firms not to quickly respond to new market opportunities (Vallejo and Mekonnen, \u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). Many researchers have studied the productivity and other problems in the Ethiopian textile and apparel manufacturing sub sector, but very few have considered value chain-related issues (Hagos et al., \u003cspan citationid=\"CR7\" class=\"CitationRef\"\u003e2018\u003c/span\u003e). According to Roadmap (\u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2020\u003c/span\u003e), strategic issues and competitiveness constraints in the Ethiopian textile and clothing value chain are poor working conditions, lack of modern IT systems, lack of a market-driven approach, outdated types of machinery diminish productivity, quality, and value, limited quantity and quality of local suppliers, poor infrastructure and Poor sector coordination with government bodies, skill gaps, and limited skilled specialists hinder productivity, quality, and value addition. These supply chain related challenges force local apparel manufacturing industries to lose customers, sales, profit, and competition in the market. Hence, implementing value chain analysis helps garment industries to analyze their works by breaking activities into strategically appropriate pieces so that they can have a complete picture of the drivers and sources of value creation for customers and to achieve competitiveness over others. To be competitive in local, and international markets the concept of value chain analysis can be broadened and should be understandable by firms, and industries. According to Porter (\u003cspan citationid=\"CR18\" class=\"CitationRef\"\u003e2008\u003c/span\u003e), the value chain analysis helps to evaluate competitive advantage and improvement strategies of firms. Porter\u0026rsquo;s value chain model explained the primary and supportive activities that directly and indirectly contribute to value creation and improving the competitive advantage of industries. Since Industry level value chain analysis is an effective way to study interactions of different actors in an industry (Walters and Rainbird, 2007) we focused on industry level value chain analysis.\u003c/p\u003e"},{"header":"2 LITERATURE REVIEW","content":"\u003cp\u003eValue chain was first proposed by Porter (\u003cspan citationid=\"CR17\" class=\"CitationRef\"\u003e1985\u003c/span\u003e) and he described on how customer value accumulates along a chain of activities that lead to an end product or service. Other scholars also defined value chain by emphasizing the key activities on product or service value creation from concept to consumer and post-consumer phases or lifecycles (Kaplinsky and Morris, \u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2000\u003c/span\u003e, Sturgeon, \u003cspan citationid=\"CR26\" class=\"CitationRef\"\u003e2001\u003c/span\u003e). Value chain analysis tools have been used to examine core and non-core activities (Scholvin et al., \u003cspan citationid=\"CR24\" class=\"CitationRef\"\u003e2019\u003c/span\u003e, Fisher et al., \u003cspan citationid=\"CR6\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). Several frameworks have developed and applied in studying individual firms, entire industries, industry clusters, and global production networks (Zamora, \u003cspan citationid=\"CR35\" class=\"CitationRef\"\u003e2016\u003c/span\u003e). A preliminary study on the existing challenges on different value chain-related issues has been conducted and presented in Table \u003cspan refid=\"Tab1\" class=\"InternalRef\"\u003e1\u003c/span\u003e.\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab1\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 1\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eMajor problems found in the Ethiopian apparel sector (Roadmap, \u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Van der Pols, \u003cspan citationid=\"CR32\" class=\"CitationRef\"\u003e2015\u003c/span\u003e)\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"2\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colspan=\"2\" nameend=\"c2\" namest=\"c1\"\u003e \u003cp\u003eFrom (very low\u0026thinsp;=\u0026thinsp;1 to Very high\u0026thinsp;=\u0026thinsp;5) level of value chain challenges\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eLack of appropriate technologies\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e4.8\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eInefficient production\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e4.6\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eInefficient logistics\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e4.6\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eLack of competitiveness\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e4.5\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eInadequate suppliers\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e4.6\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eLack of qualified management\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e4.4\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eLack of integration\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e4.4\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eLack of skilled labour\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e4.4\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cdiv id=\"Sec3\" class=\"Section2\"\u003e \u003ch2\u003e2.1. Global value chain analysis\u003c/h2\u003e \u003cp\u003eCompetitiveness in global markets is the result of efficient value chain performance of the manufacturing firms. The manufacturing sector in Ethiopia is still in the nascent stages of development, but there are visible changes in the past decade (Alderin, \u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2014\u003c/span\u003e). According to Diez et al. (\u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2018\u003c/span\u003e), the application of value chain analysis in Sub-Saharan African countries is low and even the case is worse in Ethiopian apparel industries. Studies suggest that Ethiopian textile and apparel industries in Ethiopia should focus value chain evaluation and strengthen the linkage between value chain actors such as manufacturers, government executives, stakeholders, and higher educations to improve the value chain and competitiveness of Ethiopian firms in the local and global market (Vallejo and Mekonnen, \u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2021\u003c/span\u003e).\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec4\" class=\"Section2\"\u003e \u003ch2\u003e2.2. Porter\u0026rsquo;s value chain analysis model\u003c/h2\u003e \u003cp\u003eAccording to Tan and Zailani (\u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2009\u003c/span\u003e), Porter groups the value chain functions in to primary and supportive activities where inbound and outbound logistics (Svensson, \u003cspan citationid=\"CR28\" class=\"CitationRef\"\u003e2002\u003c/span\u003e), operations (Cheng and Johansen, \u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e2014\u003c/span\u003e), marketing and sales (Kotler and Armstrong, 2010) and services are primary activities and procurement (Lavassani and Movahedi, \u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2021\u003c/span\u003e), human resource management (Woldeyohannes and Alebachew, \u003cspan citationid=\"CR34\" class=\"CitationRef\"\u003e2020\u003c/span\u003e), technology development (De-Regt et al., \u003cspan citationid=\"CR4\" class=\"CitationRef\"\u003e2020\u003c/span\u003e), firm infrastructure (Porter, \u003cspan citationid=\"CR18\" class=\"CitationRef\"\u003e2008\u003c/span\u003e) are supportive activities.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec5\" class=\"Section2\"\u003e \u003ch2\u003e2.3. Benchmarking and value chain performance\u003c/h2\u003e \u003cp\u003eThe performance of a business on important customer criteria with that of the best in the market (direct competitors) to assess what should be improved is performed through benchmarking (Ran et al., \u003cspan citationid=\"CR21\" class=\"CitationRef\"\u003e2013\u003c/span\u003e). Value chain benchmarking in the apparel industry is considered as an end-to-end, value chain performance measurement to meet final customer requirements including product availability, delivery, price, quality, and others to deliver value for customers for the benefit of both the industry, firms, and customers (Ran et al., \u003cspan citationid=\"CR21\" class=\"CitationRef\"\u003e2013\u003c/span\u003e). According to Tarei et al., (\u003cspan citationid=\"CR30\" class=\"CitationRef\"\u003e2020\u003c/span\u003e), and Anselmsson and Bondesson, (\u003cspan citationid=\"CR2\" class=\"CitationRef\"\u003e2015\u003c/span\u003e), customer, financial, internal business and innovation perspectives are important criteria used to measure the value chain.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec6\" class=\"Section2\"\u003e \u003ch2\u003e2.4. Conceptual framework of the study\u003c/h2\u003e \u003cp\u003eBased on literature, the conceptual framework has been developed using primary and supportive operations of the Porter\u0026rsquo;s value chain model as independent variables and level of value chain practice as a dependent variable. The framework helps to understand the value chain performance of selected apparel industries in Addis Ababa.\u003c/p\u003e \u003cp\u003e \u003c/p\u003e \u003c/div\u003e"},{"header":"3 RESEARCH METHODS","content":"\u003cp\u003eMultiple case studies are suitable to analyze phenomena through detailed studies and to generate a new theory or test an existing theory (Stake, \u003cspan citationid=\"CR25\" class=\"CitationRef\"\u003e2013\u003c/span\u003e). The researchers have decided to conduct a multiple case study approach as the results of a single case study are difficult to generalize. The study targeted multiple apparel industries in Addis Ababa. According to Schoch (\u003cspan citationid=\"CR23\" class=\"CitationRef\"\u003e2020\u003c/span\u003e), multiple case studies were preferred to observe, describe and examine existing value chain activities of the apparel industries better than a single company. Value chain analysis requires reliable information from various value chain actors and thorough understanding of the entire functional units, and their relationship to others (Herr and Muzira, \u003cspan citationid=\"CR9\" class=\"CitationRef\"\u003e2009\u003c/span\u003e). Hence, mixed research approach were preferred to acquire relevant and reliable information (Hellin and Meijer, \u003cspan citationid=\"CR8\" class=\"CitationRef\"\u003e2006\u003c/span\u003e). Hence, multiple case studies with qualitative, quantitative (Kaplinsky and Morris, \u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2000\u003c/span\u003e), or both methods have been used.\u003c/p\u003e \u003cdiv id=\"Sec8\" class=\"Section2\"\u003e \u003ch2\u003e3.1 Sampling Techniques\u003c/h2\u003e \u003cp\u003eThe study was carried out in Addis Ababa, the capital and largest city of Ethiopia. The study site was selected using purposive sampling technique. Product type, proximity to the marketplace, size of apparel industries and experience in the business were used as selection criteria. The selected industries for the study are shirt manufacturing industries. According to Poulis (2013), number of companies to be included in multiple case study should be minimum of three and maximum of ten. Whereas, Schoch (\u003cspan citationid=\"CR23\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) argues that in a multiple-case study, three to four distinct cases for comparison is possible if researchers can genuinely handle it. In this study, three garment industries such as Big-M Apparel, ASBM garment, and Haile garment were considered as representative. For known population, single population proportion formula (Krejcie and Morgan, \u003cspan citationid=\"CR14\" class=\"CitationRef\"\u003e1970\u003c/span\u003e) was used to proportionate the sample size based on the population size of firms (Kothari, \u003cspan citationid=\"CR12\" class=\"CitationRef\"\u003e2004\u003c/span\u003e). The samples were taken from each of the selected apparel industries. Finally, the researchers used 130 total number of respondents where 44 respondents are from Big-M apparel, 43 respondents are from ASBM industrial, and 40 respondents are from Haile garment.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec9\" class=\"Section2\"\u003e \u003ch2\u003e3.2 Data collection and analysis techniques\u003c/h2\u003e \u003cp\u003eDirect observation and a 5-point Likert scale questionnaire were used for data collection. Quantitative and qualitative analysis were used to examine the impacts of the value chain practices. The analysis was carried out based on the variables found within the value chain activities. Direct observation, questionnaires and checklists have been used important to record the major company\u0026rsquo;s activities.\u003c/p\u003e \u003c/div\u003e"},{"header":"4 RESULTS AND DISCUSSIONS","content":"\u003cdiv id=\"Sec11\" class=\"Section2\"\u003e\n \u003ch2\u003e4.1. Value chain practice in the case of companies\u003c/h2\u003e\n \u003cp\u003eDirect observations, checklists, interviews, and questionnaires were employed to assess and observe the practice of the value chain of case companies. The supply chain of the case companies was identified through interviews with the managers, marketing department, and background profiles of the case companies.\u003c/p\u003e\n \u003cp\u003e\u0026nbsp;\u003c/p\u003e\u0026nbsp;\u003ctable id=\"Tab2\" border=\"1\"\u003e\n \u003ccaption language=\"En\"\u003e\n \u003cdiv class=\"CaptionNumber\"\u003eTable 2\u003c/div\u003e\n \u003cdiv class=\"CaptionContent\"\u003e\n \u003cp\u003eRaw material sourcing locations for the case companies\u003c/p\u003e\n \u003c/div\u003e\n \u003c/caption\u003e\n \u003cthead\u003e\n \u003ctr\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eCase companies\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eRaw materials\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eSuppliers\u003c/p\u003e\n \u003c/th\u003e\n \u003c/tr\u003e\n \u003c/thead\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\" rowspan=\"3\"\u003e\n \u003cp\u003eBig-M apparel\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eFabric\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eIndia; China\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eButton\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eChina\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eLabel\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eCustom made\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\" rowspan=\"3\"\u003e\n \u003cp\u003eASBM industrial\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eFabric\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e Adama textile spinning factory; Kanoria textile factory; Sygndema textile factory\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eButton\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp Local market (Mercato)\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eLabel\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eCustom made\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\" rowspan=\"3\"\u003e\n \u003cp\u003eHaile garment\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eFabric\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHawassa textile share company; Arbaminch textile share company; Ayka Addis textile factory\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eButton\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eLocal market (Mercato)\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eLabel\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eCustom made\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n \u003c/table\u003e\n \u003cp\u003e\u003cbr\u003e\u003c/p\u003e\n \u003cp\u003e\u003cbr\u003e\u003c/p\u003e\n\u003c/div\u003e\n\u003cdiv id=\"Sec12\" class=\"Section2\"\u003e\n \u003ch2\u003e4.2. Lead time of key activities\u003c/h2\u003e\n \u003cp\u003eThe average lead time of the raw materials from order placement to final shipping depends on the quality, cost, and location of suppliers this affects the lead time. The supplier\u0026rsquo;s location plays a major role in determining the lead time of raw materials, and the final product. The following table shows the time taken by each company.\u003c/p\u003e\n \u003cdiv class=\"gridtable\"\u003e\u0026nbsp;\u0026nbsp;\u003ctable id=\"Tab3\" border=\"1\"\u003e\n \u003ccaption language=\"En\"\u003e\n \u003cdiv class=\"CaptionNumber\"\u003eTable 3\u003c/div\u003e\n \u003cdiv class=\"CaptionContent\"\u003e\n \u003cp\u003eLead time required for different activities in the case companies\u003c/p\u003e\n \u003c/div\u003e\n \u003c/caption\u003e\n \u003cthead\u003e\n \u003ctr\u003e\n \u003cth align=\"left\" rowspan=\"2\"\u003e\n \u003cp\u003eDescription of activities\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\" colspan=\"3\"\u003e\n \u003cp\u003eLeadtime for each company\u003c/p\u003e\n \u003c/th\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eBig-M\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eASBM\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eHaile garment\u003c/p\u003e\n \u003c/th\u003e\n \u003c/tr\u003e\n \u003c/thead\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eOrder Placement\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e0 days\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e0 days\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e0 days\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ePre-production\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e10\u0026ndash;15 days\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e12\u0026ndash;14 days\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e12\u0026ndash;14 days\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eProduction\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e15\u0026ndash;21 days\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e1\u0026ndash;2 days\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e1\u0026ndash;2 days\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eTransportation\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e7\u0026ndash;10 days\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e7 days\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e7 days\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eTotal lead time\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e45 days\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e21 days\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e21 days\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n \u003c/table\u003e\n \u003c/div\u003e\n \u003cp\u003e\u003cbr\u003e\u003c/p\u003e\n\u003c/div\u003e\n\u003cdiv id=\"Sec13\" class=\"Section2\"\u003e\n \u003ch2\u003e4.3. Assessment of case companies\u0026apos; value chain activities\u003c/h2\u003e\n \u003cp\u003eThe value chain of the case companies was identified and described based on the observation gathered to evaluate using a Porter\u0026rsquo;s Value chain analysis model for the primary and secondary activities.\u003c/p\u003e\n\u003c/div\u003e\n\u003ch3\u003e1. Inbound Logistics and procurement activities\u003c/h3\u003e\n\u003cp\u003eThe findings from the study show that the case companies purchase their raw materials from different places. The suppliers are chosen based on their quality, quick delivery, and technical skills as per the interviews. Currently, the activities in the case companies associated with inbound logistics and procurement activities such as purchasing raw material, receiving, storing, raw material handling, transportation, and inventory control are more or less managed effectively where the minimum performance as can be seen from Fig. \u003cspan class=\"InternalRef\"\u003e2\u003c/span\u003e is 80%.\u003c/p\u003e\n\u003cp\u003eThe response from the respondents has shown that many efforts have been done by the case companies to enhance the inbound logistics and procurement activities. Thus, the firm activities associated with inbound logistics and procurement consistently supply and feed the production room to increase their productivity and prevent stock out. This finding was also supported by other studies where the performance of the firms in terms of inbound logistics has been improved (Sultan, \u003cspan class=\"CitationRef\"\u003e2017\u003c/span\u003e).\u003c/p\u003e\n\u003ch3\u003e2. Operation activities\u003c/h3\u003e\n\u003cp\u003eOperational activity is one of the main and critical departments in the value chain of garment industries (Porter, \u003cspan class=\"CitationRef\"\u003e2008\u003c/span\u003e). This function is responsible to convert raw materials into finished products (garments) based on the quantity of orders approved by customers. Shirt productivity of the three case companies is shown in Table\u0026nbsp;\u003cspan class=\"InternalRef\"\u003e4\u003c/span\u003e.\u003c/p\u003e\n\u003cdiv class=\"gridtable\"\u003e\u0026nbsp;\u0026nbsp;\u003ctable id=\"Tab4\" border=\"1\"\u003e\n \u003ccaption language=\"En\"\u003e\n \u003cdiv class=\"CaptionNumber\"\u003eTable 4\u003c/div\u003e\n \u003cdiv class=\"CaptionContent\"\u003e\n \u003cp\u003eRecorded shirt productivity of the case companies\u003c/p\u003e\n \u003c/div\u003e\n \u003c/caption\u003e\n \u003cthead\u003e\n \u003ctr\u003e\n \u003cth align=\"left\" colspan=\"2\"\u003e\n \u003cp\u003eBig-M apparel plc (target\u0026thinsp;=\u0026thinsp;888, 8hrs per shift)\u003c/p\u003e\n \u003c/th\u003e\n \u003c/tr\u003e\n \u003c/thead\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eSample number\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eActual production\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eSample1\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e741\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eSample 2\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e750\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eSample 3\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e738\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\" colspan=\"2\"\u003e\n \u003cp\u003eASBM industrial plc (target\u0026thinsp;=\u0026thinsp;712, 8hrs per shift)\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eSample number\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eActual production\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eSample1\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e624\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eSample 2\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e645\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eSample 3\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e614\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\" colspan=\"2\"\u003e\n \u003cp\u003eHaile Garment (target\u0026thinsp;=\u0026thinsp;816, 8hrs per shift)\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eSample number\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eActual production\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eSample1\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e746\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eSample 2\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e723\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eSample 3\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e718\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n \u003c/table\u003e\n\u003c/div\u003e\n\u003cdiv class=\"gridtable\"\u003e\n \u003cdiv align=\"left\" class=\"colspec\"\u003e\u003cbr\u003e\u003c/div\u003e\u0026nbsp;\u0026nbsp;\u003ctable id=\"Tab5\" border=\"1\"\u003e\n \u003ccaption language=\"En\"\u003e\n \u003cdiv class=\"CaptionNumber\"\u003eTable 5\u003c/div\u003e\n \u003cdiv class=\"CaptionContent\"\u003e\n \u003cp\u003eQuality assessment of shirt product in the case companies\u003c/p\u003e\n \u003c/div\u003e\n \u003c/caption\u003e\n \u003cthead\u003e\n \u003ctr\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eSample number\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eTotal inspected\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003ePassed\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eRework\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eDHU (%)\u003c/p\u003e\n \u003c/th\u003e\n \u003c/tr\u003e\n \u003c/thead\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\" colspan=\"5\"\u003e\n \u003cp\u003eBig-Mapparel\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e1\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e741\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e644\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e97\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e13\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e2\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e751\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e636\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e115\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e15.5\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e3\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e738\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e604\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e134\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e18.2\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\" colspan=\"5\"\u003e\n \u003cp\u003eASBM industrial\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e1\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e624\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e502\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e122\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e15\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e2\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e645\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e537\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e108\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e13\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e3\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e614\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e508\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e106\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e13\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\" colspan=\"5\"\u003e\n \u003cp\u003eHaile garment\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e1\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e746\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e628\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e118\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e16\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e2\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e723\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e606\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e117\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e16\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e3\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e718\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e620\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e98\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e14\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n \u003c/table\u003e\n\u003c/div\u003e\n\u003cp\u003e\u003cbr\u003e\u003c/p\u003e\n\u003cp\u003eBased on the recorded data from each case company, the average non-conformance of shirt products per day were 16%, 15%, and 13.5%. This is higher than the average nonconformity of the best company and this affects the firm\u0026rsquo;s profitability and competitiveness. Operation is considered as a major activity that transforms raw materials into end products. Based on the observation the operation activities of the firms show that effectively managed through automated technologies, operator\u0026rsquo;s training, production planning, scheduling, and quality control are considered as a strong effort that enhances the operational activities of the firms.\u003c/p\u003e\n\u003cp\u003eThe operational activities of the case companies have a major impact on a firm\u0026rsquo;s performance and the result was also supported by other studies (Sultan, \u003cspan class=\"CitationRef\"\u003e2017\u003c/span\u003e).\u003c/p\u003e\n\u003ch3\u003e3. Outbound logistics activities\u003c/h3\u003e\n\u003cp\u003eOutbound logistics can be seen as a part of the supply chain concerned with the distribution of finished goods to consumers. Outbound logistics plays an important role in the value chain of firms. In the case of companies, based on the agreement with the customers the firms deliver the end product for each customer to their place.\u003c/p\u003e\n\u003cdiv class=\"gridtable\"\u003e\u0026nbsp;\u0026nbsp;\u003ctable id=\"Tab6\" border=\"1\"\u003e\n \u003ccaption language=\"En\"\u003e\n \u003cdiv class=\"CaptionNumber\"\u003eTable 6\u003c/div\u003e\n \u003cdiv class=\"CaptionContent\"\u003e\n \u003cp\u003eAverage transportation or logistics for delivery of goods to customers\u003c/p\u003e\n \u003c/div\u003e\n \u003c/caption\u003e\n \u003cthead\u003e\n \u003ctr\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eTransportation Mode\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eDeadline (Days)\u003c/p\u003e\n \u003c/th\u003e\n \u003c/tr\u003e\n \u003c/thead\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eRoad\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e1\u0026ndash;3\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eRailway\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e1 -1.5\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eAir\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e0.5-1\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n \u003c/table\u003e\n\u003c/div\u003e\n\u003cp\u003e\u003cbr\u003e\u003c/p\u003e\n\u003cp\u003eSince the customers of all case companies are local the time required to deliver and distribute the final product at the right time to the right place was effectively managed. The existing value chain performance from the observed data shows that great efforts have been made by the case companies in the distribution and management of goods to enhance the outbound logistic activities.\u003c/p\u003e\n\u003cp\u003eIn the case company after the products are completed goods are packed and distributed to their customers with convenient transportation and an efficient order processing system. In general, the distribution of goods is seen as properly managed in the industry and the finding is also supported by the outcomes of other studies (Muazu, \u003cspan class=\"CitationRef\"\u003e2019\u003c/span\u003e; Sultan, \u003cspan class=\"CitationRef\"\u003e2017\u003c/span\u003e).\u003c/p\u003e\n\u003ch3\u003e4. Marketing and sales activities\u003c/h3\u003e\n\u003cp\u003eThe marketing and sales department is responsible for finding new customers, promoting products made by the factory, and receiving work orders from customers. The major challenge of the case companies is the high competition of rival companies found in that area, market penetration, and site location is difficult to find easily and accessed by customers.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eCost analysis of shirt manufacturing\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eThe unit cost (in USD) of shirt products in Big-M apparel, ASBM industrial, and Haile garment was 11.32, 9.43, and 9.43 respectively. When compared with the market value, the cost of the firms was better. The variety of products produced by each case company satisfies their customers.\u003c/p\u003e\n\u003cdiv class=\"gridtable\"\u003e\u0026nbsp;\u0026nbsp;\u003ctable id=\"Tab7\" border=\"1\"\u003e\n \u003ccaption language=\"En\"\u003e\n \u003cdiv class=\"CaptionNumber\"\u003eTable 7\u003c/div\u003e\n \u003cdiv class=\"CaptionContent\"\u003e\n \u003cp\u003eProduct types produced in each case company\u003c/p\u003e\n \u003c/div\u003e\n \u003c/caption\u003e\n \u003cthead\u003e\n \u003ctr\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eCase companies\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eType of products\u003c/p\u003e\n \u003c/th\u003e\n \u003c/tr\u003e\n \u003c/thead\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eBig-M apparel\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eShirts; Overcoat; Jacket; Polo shirt; Different types uniforms; Trouser; Skirt; Vest\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eASBM industrial\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eShirts; T-shirts; Sweater; Polo shirt; Hoodie; Underwear; Skirt\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHaile garment\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eShirts; T-shirts; Dresses; Blouse; Gowns; Trousers; Overcoat; Jacket\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n \u003c/table\u003e\n\u003c/div\u003e\n\u003cp\u003e\u003cbr\u003e\u003c/p\u003e\n\u003cp\u003eBased on the observation and expert\u0026rsquo;s opinions the performance of marketing and sales activities are low. Even though, most of the garment factories are located around the capital city, Addis Ababa, they do not have organized marketing and sales outlets to improve accessibility to their customers.\u003c/p\u003e\n\u003cp\u003eIn general, the marketing and sales activities in the firms show that the firm do not pay much attention to enhance their marketing and sales activities in their value chain. Most of the local garment industries do not conduct market research and they do not follow an effective marketing strategy. There is a lack of social platforms to penetrate both the local and international markets. Due to these facts, the practice of marketing and sales activities in local garment factories is low and they cannot able to introduce their products to the potential market and reach their target consumers.\u003c/p\u003e\n\u003ch3\u003e5. Service activities\u003c/h3\u003e\n\u003cp\u003eThe service quality of garment companies in Ethiopia is poor and they have weak communication with the buyers. Most of the local garment industries only engage in transactional activities and they are not responsive customer complaints. They don\u0026rsquo;t have after sale services to their customers. Based on observations and discussions with respondents the customer policy and complaint handling system are found to be less effective in the firms. They have weak communication with buyers and the service quality is less efficient.\u003c/p\u003e\n\u003cp\u003eThe major problem for service activity having a low impact on firm performance is the firms don\u0026rsquo;t provide activities, such as repair, efficient service, and a good customer handling approach for their customers. To improve this and be competitive garment industries have to provide a warranty, repair, after-sales services, reliable, and fast services, and a good customer handling management system.\u003c/p\u003e\n\u003ch3\u003e6. \u003cstrong\u003eTechnology development activities\u003c/strong\u003e\u003c/h3\u003e\n\u003cp\u003eTechnology development plays one of the most important roles in the value chain of garment industries. Apparel production currently requires the latest technologies and equipment to improve products and compete with rival companies (Wignaraja, G., \u003cspan class=\"CitationRef\"\u003e2002\u003c/span\u003e). Based on the observation, technology development was efficiently managed in the firms showing that strong efforts were done by the firms to enhance their technology development activities by establishing strong links and integration among the functional units and creating a competitive advantage. The technology development was better in Big M apparel industry compared with other two case companies.in general, the findings of the study shows that the companies have adequate technologies and equipment that support the value chain activities of the firm which ensures their competitiveness in the local and global market.\u003c/p\u003e\n\u003ch3\u003e7. \u003cstrong\u003eHuman resource management activities\u003c/strong\u003e\u003c/h3\u003e\n\u003cp\u003eAccording to the researchers\u0026apos; observation and interviews, the main challenge related to human resource is a high turnover of labor due to dissatisfaction on wages and incentives. From observation in the case companies, the employees have lack of skill, knowledge, experience.\u003c/p\u003e\n\u003cp\u003eFirms should invest in training and skill development programs, follow standard recruiting procedures, and appropriate training practices to enhance competitiveness of the value chain related to manpower productivity.\u003c/p\u003e\n\u003ch3\u003e8. \u003cstrong\u003eFirm infrastructure activities\u003c/strong\u003e\u003c/h3\u003e\n\u003cp\u003eFirm infrastructures are facilitators for the development of industries by supporting product development, and distribution channels, and carrying out the process and activities efficiently. The firm infrastructure level in the case companies needs further improvement. Power and water supply are not sufficiently supplied to the industries. Based on the data from the case companies, there are less effort to enhance their firm infrastructure activities in the value chain. The focus group discussion with companies shows that firm infrastructure is given lower emphasis in the garment industries. In this study, the inadequacy of the infrastructure has been seen as one of the major constraints on the development of the garment manufacturing industries. Despite the government effort, the infrastructure provision in Ethiopia is weak which affects the competitiveness of the garment industries.\u003c/p\u003e\n\u003ch3\u003e9. \u003cstrong\u003eStakeholder coordination activities\u003c/strong\u003e\u003c/h3\u003e\n\u003cp\u003eThe relationship of the case companies with stakeholders and government is low. This is due to poor communication and data exchange on time and, there is also a lack of stakeholders and government follow up, towards promotion and facilitation of the marketing activities of the local apparel industries. According to in-depth group discussion with ETIDI experts, most of the local apparel industries have less effective communication and timely information exchange with required stockholders. The data analysis shows that collaboration and coordination of the case companies with related institutions including research institutions, higher education institutions, and government bodies are low. This shows that minimum efforts have been made by the firms to enhance their stakeholder coordination activities.\u003c/p\u003e\n\u003cp\u003eMoreover, results show that the case companies should enhance their collaboration and integration with government institutions and stakeholders to be more competitive than their competitors. The result of Hagos (2018) shows that stakeholders\u0026rsquo; participation is a crucial part of strategic management that enhances and maintains the competitiveness of garment industries by 62%. This means the result of this study shows disagreement with our study so the case companies need an improvement to enhance their collaboration and integration with government institutions and stakeholders to be more competitive than rival industries.\u003c/p\u003e\n\u003cdiv class=\"gridtable\"\u003e\n \u003cdiv align=\"left\" class=\"colspec\"\u003e\u003cbr\u003e\u003c/div\u003e\u0026nbsp;\u003ctable id=\"Tab8\" border=\"1\"\u003e\n \u003ccaption language=\"En\"\u003e\n \u003cdiv class=\"CaptionNumber\"\u003eTable 8\u003c/div\u003e\n \u003cdiv class=\"CaptionContent\"\u003e\n \u003cp\u003eSummary of impact of the value chain components on each case company\u003c/p\u003e\n \u003c/div\u003e\n \u003c/caption\u003e\n \u003cthead\u003e\n \u003ctr\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eValue chain variables\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eBig M apparel (%)\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eASBM industrial (%)\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eHaile garment (%)\u003c/p\u003e\n \u003c/th\u003e\n \u003c/tr\u003e\n \u003c/thead\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eInbound logistics and procurement\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e80\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e84\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e86\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eOperation\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e75\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e83\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e83\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eOutbound logistics\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e86\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e82\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e84\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eMarketing and Sales\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e49\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e35\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e40\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eService\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e46\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e39\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e35\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eTechnology development\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e75\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e70\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e73\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHuman resources management\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e50\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e45\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e51\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eFirm infrastructure\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e52\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e49\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e54\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eStakeholder coordination\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e50\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e38\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e50\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n \u003c/table\u003e\n\u003c/div\u003e\n\u003cp\u003e\u003cbr\u003e\u003c/p\u003e\n\u003cp\u003eAs per the results found from the study, primary activities in terms of inbound logistics and procurement, operation, and outbound logistics activities were managed well in the case companies (Sultan, \u003cspan class=\"CitationRef\"\u003e2017\u003c/span\u003e). However, marketing and sales, and service activities, especially concerning conducting market research toward the taste and preference of customers, following an effective marketing strategy, and providing efficient customer service are low in the case companies (Rahayu and Nanda, \u003cspan class=\"CitationRef\"\u003e2020\u003c/span\u003e). With regards to the supportive activities, technology development has shown good performance in each case company. Whereas human resources, firm infrastructures, and stakeholder coordination have shown that they are ineffective areas, especially in obtaining skilled and experienced manpower, the inadequacy of firm infrastructure and lack of integration between firms and stakeholders need further improvement to enhance the firm\u0026rsquo;s competitiveness (Woldeyohannes and Alebachew, \u003cspan class=\"CitationRef\"\u003e2020\u003c/span\u003e; Hagos, 2018).\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eBenchmarking of the case companies\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eThe benchmark matrix shows that the three Ethiopian apparel industries were measured based on observation and their value chain performance Metrix such as productivity, quality, SMV, cost, and lead time. Then the benchmark company was selected by considering the firm which had the best practices of shirt production/day.\u003c/p\u003e\n\u003cp\u003e\u003c/p\u003e\u0026nbsp;\u003ctable id=\"Tab9\" border=\"1\"\u003e\n \u003ccaption language=\"En\"\u003e\n \u003cdiv class=\"CaptionNumber\"\u003eTable 9\u003c/div\u003e\n \u003cdiv class=\"CaptionContent\"\u003e\n \u003cp\u003eBenchmark performance of the case companies\u003c/p\u003e\n \u003c/div\u003e\n \u003c/caption\u003e\n \u003cthead\u003e\n \u003ctr\u003e\n \u003cth align=\"left\" rowspan=\"2\"\u003e\n \u003cp\u003eCompanies\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\" colspan=\"5\"\u003e\n \u003cp\u003eValue chain analysis metrics\u003c/p\u003e\n \u003c/th\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eProductivity (pcs/ day)\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eQuality (%)\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eSAM (min.)\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eLead time (days)\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eCost (Birr)\u003c/p\u003e\n \u003c/th\u003e\n \u003c/tr\u003e\n \u003c/thead\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eASBM industrial\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e627\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e81.5\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e28\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e15\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e500\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eBIG-M apparel\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e743\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e82.3\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e30\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e45\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e600\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHaile garment\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e729\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e82.55\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e27\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e15\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e500\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n\u003c/table\u003e\n\u003cp\u003e\u003c/p\u003e\n\u003cp\u003e\u003cbr\u003e\u003c/p\u003e\n\u003cp\u003eThe result from Table \u003cspan class=\"InternalRef\"\u003e9\u003c/span\u003e suggested that Haile Garment had better performance compared to the rest of the case companies in terms of metrics such as high quality, low cost, minimum lead time, and low SMV of a formal shirt product. The remaining case companies also need to improve themselves where each one is needed to be efficient, responsive, and competitive in the market.\u003c/p\u003e\n\u003cdiv class=\"gridtable\"\u003e\u0026nbsp;\u0026nbsp;\u003ctable id=\"Tab10\" border=\"1\"\u003e\n \u003ccaption language=\"En\"\u003e\n \u003cdiv class=\"CaptionNumber\"\u003eTable 10\u003c/div\u003e\n \u003cdiv class=\"CaptionContent\"\u003e\n \u003cp\u003eGarment benchmarks on value chain experience regarding foreign countries\u003c/p\u003e\n \u003c/div\u003e\n \u003c/caption\u003e\n \u003cthead\u003e\n \u003ctr\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eIndicators\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eJordan\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eBangladesh\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eChina\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eTurkey\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eIndia\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eVietnam\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eEthiopia\u003c/p\u003e\n \u003c/th\u003e\n \u003c/tr\u003e\n \u003c/thead\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eRaw material\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ePartially imported from foreign textile firms\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eLocally produced\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eLocally produced cotton\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eLocally produced of cotton\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eLocally produced of cotton\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eImported from other countries\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ePartially imported from foreign textile firms\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eShipping time(days)\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e28\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e10\u0026ndash;15\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e15\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e5\u0026ndash;10\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e18\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e30\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e45\u0026ndash;90\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHuman power\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHigh shortage of skilled and experienced labor\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eGood availability\u003c/p\u003e\n \u003cp\u003eof skilled workers and less-skilled management\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eLack of workers, but good availability of skilled managers\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eGood availability of skilled workers\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eGood availability of skilled workers\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eGood availability of skilled workers\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHigh shortage of skilled labor and experts\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eLabor cost (USD)\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e320\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e95\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e348\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e380\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e104\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e80\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e20\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eProduct variety\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eWide range of textile and garment products\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eKnitwear, denim, jersey, children\u0026rsquo;s clothing, woven, tops and bottoms\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eKnitwear, denim, children\u0026rsquo;s cloth, woven, tops bottoms, outerwear\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eKnitwear, denim, jersey children\u0026rsquo;s clothing, woven, tops and bottoms\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eKnitwear, denim, children\u0026rsquo;s wear,\u003c/p\u003e\n \u003cp\u003ewovens, tops, and bottoms\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eKnitwear, denim, children\u0026rsquo;s wear,\u003c/p\u003e\n \u003cp\u003ewovens, tops, and bottoms\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eWide range of uniforms, shirts, polo shirts, and tops\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eAverage shirt SMV (minutes)\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e20\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e17\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e21\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e19\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e21\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e20\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e28\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eTechnology level\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eLow-medium\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eGrowing fast\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHigh\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eMedium\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eMedium\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eMedium\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eLow-medium\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ePotential for value-added production\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eMedium-high\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eMedium\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHigh\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eMedium-High\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eMedium-High\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eLow-medium\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eLow\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ePotential for large order size\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHigh\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHigh\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHigh\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHigh\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHigh\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eMedium-high\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eMedium-high\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eResearch and development\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eMedium\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eMedium\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHigh\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eMedium\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHigh\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eMedium\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eLow\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eIncentive for labors\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHigh\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eMedium\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHigh\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHigh\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHigh\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eMedium\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eMedium\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n \u003c/table\u003e\n\u003c/div\u003e\n\u003cp\u003e\u003cbr\u003e\u003c/p\u003e\n\u003cp\u003eThe benchmark comparison of Ethiopian garment industries with six countries using 11 criteria is provided in Table \u003cspan class=\"InternalRef\"\u003e10\u003c/span\u003e. Hence, from the comparison Ethiopian garment industries have shown medium to lower performance except the labor cost.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eProposed strategic improvement model\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eThe analysis of the findings from the existing performance of the value chain in the case companies has shown low performance on each primary and secondary value chain performance measures. Based of these findings, strategic solution guides to the value chain practices, final goals, and effects expected by the implementation of the actions are proposed in Table \u003cspan class=\"InternalRef\"\u003e11\u003c/span\u003e. To achieve the garment industry\u0026apos;s value chain competitiveness, these strategic solutions have been identified as being the cornerstones to enhance the value chain practices and competitiveness of the Ethiopian garment industry.\u003c/p\u003e\n\u003cdiv class=\"gridtable\"\u003e\u0026nbsp;\u0026nbsp;\u003ctable id=\"Tab11\" border=\"1\"\u003e\n \u003ccaption language=\"En\"\u003e\n \u003cdiv class=\"CaptionNumber\"\u003eTable 11\u003c/div\u003e\n \u003cdiv class=\"CaptionContent\"\u003e\n \u003cp\u003eSolution model for value chain performance improvement\u003c/p\u003e\n \u003c/div\u003e\n \u003c/caption\u003e\n \u003cthead\u003e\n \u003ctr\u003e\n \u003cth align=\"left\" colspan=\"2\"\u003e\n \u003cp\u003e1. \u003cem\u003eImprove employee capability through skills development\u003c/em\u003e\u003c/p\u003e\n \u003c/th\u003e\n \u003c/tr\u003e\n \u003c/thead\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eStrategic approaches\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eTarget measures\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ea. Increase the level of technical and supervisory skills\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\" rowspan=\"2\"\u003e\n \u003cp\u003eNumber of trained employees in the firm\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eb. Conduct a skills gap and assessment study in the entire value chain and develop internal activity assessment metrics, standards, and training programs\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ec. Improve HR policies, employee retention, and incentives\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eHaving a standard recruiting procedure\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ed. Support companies in developing HR policies and practices after a comprehensive review of applicable local laws, international compliance standards, and global best practice\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eBonus and incentives\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\" colspan=\"2\"\u003e\n \u003cp\u003e2. \u003cstrong\u003eUpgrading the technological capability and maintenance service of the firms\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eStrategic approaches\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eTarget measures\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ea. Ensure the availability of sufficient spare parts\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\" rowspan=\"3\"\u003e\n \u003cp\u003eAvailability of new technologies and ensuring maintenance department in the firms\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eb. Ensure maximum machinery and equipment\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ec. Conduct maintenance training\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\" colspan=\"2\"\u003e\n \u003cp\u003e3. \u003cstrong\u003eStrengthen the development of the garment industry through coordinated action\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eStrategic approaches\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eTarget measures\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ea. Reinforce coordination between apparel industries and ETIDI, ETGAMA, government bodies, and universities\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eExchange of data with stakeholders\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eb. Improve existing training and education and align with the industry needs\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\" rowspan=\"3\"\u003e\n \u003cp\u003eContinuous relationship or engagement with stakeholders\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ec. Improve the legal and regulatory framework relevant to the current existing garment industries and market\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ed. Establish linkages between international investors, buyers, and local suppliers in a more systematic manner, by taking into consideration of local garment industries through:\u003c/p\u003e\n \u003cp\u003e➢ Assisting and finding new local and international suppliers and buyers\u003c/p\u003e\n \u003cp\u003e➢ Providing training and knowledge transfer from investors to enhance the relationship between investors and local firms (includes cooperative learning among suppliers; internal training to affiliates; in-plant training; etc.)\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\" colspan=\"2\"\u003e\n \u003cp\u003e4. \u003cstrong\u003eProduct and market development through the use of trade information\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eStrategic approaches\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eTarget measures\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ea. Ensure easy and timely access to trade information for the garment industries\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eSocial platforms\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eb. Create a strategic partnership with ETIDI, and ETGAMA, to gather up-to-date garment industries policy, trade, and market information, and perceive early notifications on targeted markets and products\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ePromotion ways\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ec. Increase firms\u0026rsquo; capacity to fulfill local and international market requirements and to align with the current market demand and product development\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eMarket and consumer preference test\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ed. Provide training on the modern trends of fashion design, marketing strategy, and market penetration\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eCreativity\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\" colspan=\"2\"\u003e\n \u003cp\u003e5. \u003cstrong\u003eImprove the availability of raw material supply\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eStrategic approaches\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eTarget measures\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ea. Expand the manufacturing of textile and garment suppliers to improve the lead time of raw materials.\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\" rowspan=\"3\"\u003e\n \u003cp\u003eHaving long last and strategic suppliers and lead time\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eb. Support local suppliers and expand the reach to the regional states\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ec. Increase the availability of raw materials with the required quality by strengthening raw material producer\u0026rsquo;s capacity and creating market linkage with local and foreign suppliers.\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\" colspan=\"2\"\u003e\n \u003cp\u003e6. \u003cstrong\u003eContinuous quality improvement\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eStrategic approaches\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eTarget measures\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ea. Check each garment production process stage if it meets the defined quality standards\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\" rowspan=\"2\"\u003e\n \u003cp\u003eDefects per hundred unit\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eb. Eliminate waste and address factors that affect quality through root cause analysis\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ec. Measure and control the process and product quality against predefined parameters\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\" rowspan=\"3\"\u003e\n \u003cp\u003eAcceptable quality level\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ed. Improve the quality and consistency of processes\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003ee. Ensure the quality management system of industries align with the international standards\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n \u003c/table\u003e\n\u003c/div\u003e"},{"header":"5 CONCLUSIONS","content":"\u003cp\u003eCompetition in the textile and apparel industry brought new challenges for an emerging economy like Ethiopia. The findings from the study shows that most of the garment industries have many challenges including lack of skilled labor, capabilities, and sophisticated manufacturing systems. Due to this reason many of the textile and garment industries don\u0026rsquo;t have competitiveness in the local and international markets. The results show that primary activities in terms of inbound logistics, outbound logistics, and operation have a significant effect on firm competitiveness. However, service and marketing activities, marketing strategy, promotion, and providing an efficient service are very low. Concerning the supportive activities, technology development activity was seen as very effectively managed in the case companies. Whereas such as stakeholder coordination, firm infrastructures, and human resource management have a low impact on firm competitiveness due to the problems such as ineffective and inefficient management structures, turnover (mainly due to low wages, and unpleasant working conditions), lack of reliable suppliers, lack of new product development, low productivity and low quality of products. There is no comprehensive, and harmonized value chain policy for garment industries. Because of this shortcoming, the Ethiopian garment industry did not become powerful, and united, Even the concept of value chain analysis is not yet understood by those firms. In general, to build a successful competitive economy there is a need the Ethiopian government and all concerned bodies should work hard to create a structural, strategic, and sustainable value chain system and policy that every garment industry uses and implement. The different actors in the value chain should be trained and infrastructure development, raw material access and quality improvements, technological upgradation and market access should be the focus. Further studies can be conducted to study the entire value chain of textile and apparel industries in Ethiopia.\u003c/p\u003e "},{"header":"Declarations","content":"\u003cp\u003e \u003ch2\u003eCompeting interests:\u003c/h2\u003e \u003cp\u003eThere is no conflict of interest between the authors\u003c/p\u003e \u003c/p\u003e\u003ch2\u003eFunding\u003c/h2\u003e \u003cp\u003e\u0026bull; The funding source is Bahir Dar University (Thesis2022)\u003c/p\u003e\u003ch2\u003eAuthors' contributions\u003c/h2\u003e \u003cp\u003eThe authors have equal contribution to this manuscript.\u003c/p\u003e\u003ch2\u003eAcknowledgements\u003c/h2\u003e \u003cp\u003e\u0026bull; We would like to acknowledge the funder, esteemed reviewers and editors who help on improving this manuscript\u003c/p\u003e\u003ch2\u003eAvailability of data and materials:\u003c/h2\u003e \u003cp\u003e\u0026bull; Data and materials will be provided up on request\u003c/p\u003e"},{"header":"References","content":"\u003col\u003e\u003cli\u003e\u003cspan\u003eAlderin C (2014) Made in Ethiopia: Challenges and opportunities in the emerging textile industry in Ethiopia\u003c/span\u003e\u003c/li\u003e \u003cli\u003e\u003cspan\u003eAnselmsson J, Bondesson N (2015) Brand value chain in practise; the relationship between mindset and market performance metrics: A study of the Swedish market for FMCG. 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Asian J Innov Policy 5(2):116\u0026ndash;128\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e"}],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":true,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":false,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":false,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Apparel, competitiveness, value chain analysis, value chain model","lastPublishedDoi":"10.21203/rs.3.rs-3658661/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-3658661/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eApparel manufacturers create value and ensure customer satisfaction for market competitiveness. This study analyses the apparel value chain in Ethiopia. The study focuses on apparel manufacturing industries around Addis Ababa using a multiple-case study approach. Data were collected using questionnaires, checklists, observations, and focus group discussions. A judgmental sampling technique was employed to select 115 respondents from prescreened case companies. Porter\u0026rsquo;s value chain model using qualitative techniques and descriptive statistics was used for analysis. The study reveals that operations, technology, inbound and outbound logistics showed high impact on firms\u0026rsquo; performance. Marketing and sales, services, firm infrastructure, human resource management, and stakeholders have less impact. Hence, apparel industries should focus on internal activities to improve business performance. In addition, government institutions should support technology and infrastructure.\u003c/p\u003e","manuscriptTitle":"Apparel value chain analysis in Ethiopia: a multiple case study","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2024-01-24 19:06:36","doi":"10.21203/rs.3.rs-3658661/v1","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true}}],"origin":"","ownerIdentity":"dfa59212-6e4d-492d-aff1-7bd6f3a38b2e","owner":[],"postedDate":"January 24th, 2024","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"posted","subjectAreas":[],"tags":[],"updatedAt":"2024-02-22T02:23:24+00:00","versionOfRecord":[],"versionCreatedAt":"2024-01-24 19:06:36","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v1","identity":"rs-3658661","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-3658661","identity":"rs-3658661","version":["v1"]},"buildId":"qtupq5eGEP_6zYnWcrvyt","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}