How relationships between foreign buyers and local Bangladeshi RMG firms within buyer-driven GVCs influence firm learning, capability development, and strategic options for buyer diversification
Authors
Mahfuz, Syed Tawsif ; Zihad, Hossain Al Mahmud
Term
4. Term
Publication year
2026
Abstract
Bangladesh’s ready-made garment industry is the world’s second-largest apparel exporter, but it operates in buyer-driven global value chains where foreign brands control design, branding, and market access. This thesis explores how ties with foreign buyers shape supplier learning, capability building, and the ability to reduce reliance by diversifying customers. The study is based on semi-structured interviews with senior managers in five firms: four export-oriented suppliers and one contrast case producing under license for the domestic market. Interview data were organized using a structured, theme-based approach, grouping 337 coded observations into eight overarching themes. Findings show that buyers govern suppliers through entry requirements and continuous monitoring. Relationship variety exists within a single firm: suppliers simultaneously manage long-standing “legacy” customers, large corporate buyers, and newer, less conventional buyers. Learning is driven mainly by enforcement—rejected shipments, audit non-compliances, and corrective action cycles—rather than by cooperative knowledge sharing. The central insight is an upgrading–dependence paradox: close, buyer-driven engagement strengthens supplier capabilities while making dependence narrower. Across the four export cases, Path A (upgrading with continued dependence) was the dominant outcome. Path B (diversifying buyers and reducing dependence) is achievable, but only when three conditions align: built capabilities, deliberate deployment, and a production model that fits target buyers. None of the cases had all three in place. The thesis contributes to the upgrading critique by identifying two mechanisms behind the paradox—absorbing extra costs and lock-in to premium buyers. It also refines common categories of buyer–supplier control by showing that a single firm can hold a mixed portfolio of buyer relationships. Finally, it offers practical implications for firm strategy and industrial policy in Bangladesh.
Bangladeshs tøjindustri (ready-made garments) er verdens næststørste eksportør, men arbejder i køberstyrede globale værdikæder, hvor udenlandske mærker bestemmer design, brand og adgang til markeder. Denne afhandling undersøger, hvordan relationer til udenlandske købere påvirker leverandørernes læring, opbygning af kapabiliteter og muligheder for at sprede risikoen ved at få flere typer kunder. Studiet bygger på semistrukturerede interviews med topledere i fem virksomheder: fire eksportrettede leverandører og en kontrastcase, der producerer på licens til hjemmemarkedet. Interviewene blev kodet og organiseret i en systematisk, tematisk analyse, hvor 337 koder blev samlet i otte overordnede temaer. Resultaterne viser, at købere styrer leverandører gennem adgangskrav og løbende overvågning. Variation i relationer findes inden for den enkelte virksomhed: leverandører håndterer samtidig både gamle, veletablerede kunder (legacy), store koncernkunder og mere utraditionelle købere. Læring sker primært gennem håndhævelse – fx afviste leverancer, audit-afvigelser og korrigerende handlingsforløb – snarere end gennem samarbejdende videndeling. Hovedfundet er et opgradering–afhængigheds-paradoks: Tæt, køberdrevet samarbejde gør leverandører dygtigere, men gør samtidig deres afhængighed mere snæver. På tværs af de fire eksportcases var Sti A (opgradering med fortsat afhængighed) det mest almindelige udfald. Sti B (køberdiversificering og mindre afhængighed) er mulig, men kræver tre ting på én gang: opbyggede kapabiliteter, målrettet anvendelse af dem og at produktionsmodellen passer til de ønskede kunder. Ingen af casene havde alle tre betingelser på plads. Afhandlingen bidrager til kritikken af opgradering ved at pege på to mekanismer bag paradokset: omkostningsabsorbering og fastlåsning til premium-købere. Den nuancerer også gængse kategorier for styring af relationer ved at vise, at en enkelt virksomhed kan rumme en portefølje af forskellige købertyper. Endelig giver den praktiske implikationer for virksomheders strategier og industripolitik i Bangladesh.
[This apstract has been rewritten with the help of AI based on the project's original abstract]
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