Economic Review, Vol. 59 No. 7-8, 2008.
Preliminary communication
FULL MANUFACTURING VERSUS SUBCONTRACTING BUSINESS MODELS IN THE CROATIAN TEXTILE AND CLOTHING INDUSTRY
Ivan-Damir Anić
Edo Rajh
Ivan Teodorović
Abstract
The purpose of this study was to compare the strategic behavior and
performance of two groups of companies: manufacturers and subcontractors operating in the Croatian textile and clothing industry. The hypotheses were tested with data collected from company survey carried out during the period of December 2006 to February 2007 in Croatia. The data was analyzed using one-way analysis of variance and chi-square test. The results indicate that manufacturers have higher total expenses and higher capital intensity. They
pay higher than average wages and are more inclined to conduct R&D, design and development and carry out market research. Manufacturers tend to emphasize their own brands and invest in marketing and promotion signifi cantly more than subcontractors. The fi ndings show that manufacturers exhibited higher productivity level than subcontractors, which was not the case with profitability. The framework provided helps manufacturers evaluate their current
position better and improve their market positioning accordingly.
Keywords
textile and clothing industry; subcontracting; full manufacturing; strategy; productivity; profi tability; market re-positioning
Hrčak ID:
25692
URI
Publication date:
22.7.2008.
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