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A master's thesis from Aalborg University
Book cover


Strategic Responses to Functional Lock-in- Entrepreneurial Capabilities and Uneven Upgrading in Bangladesh's Apparel Global Value Chains

Author

Term

4. Semester

Publication year

2026

Submitted on

Pages

89

Abstract

This thesis examines why export-oriented apparel manufacturers in Bangladesh remain locked into low-value activities within buyer-driven global value chains and identifies strategies to unlock and achieve functional upgrading. Using a qualitative multiple-case approach grounded in Critical Realism, it develops the Capability–Agency–Internationalization (CAI) model to explain uneven upgrading trajectories. The analysis draws on semi-structured interviews with key actors across the apparel value chain, including Bangladeshi manufacturers, global buyers, and institutional compliance representatives. Findings show that improvements in operational capabilities and sustainability compliance alone do not deliver functional upgrading. Progress depends on the alignment between accumulated capabilities and strategic agency—especially leaders’ willingness to invest in innovation, design capabilities, and market diversification. Three core insights emerge: (1) successful upgrading requires proactive strategic agency rather than reactive compliance with buyer demands; (2) a persistent middle-management capability gap is a major organizational barrier to moving toward Original Brand Manufacturing (OBM); and (3) firms seeking greater strategic autonomy must diversify internationalization pathways beyond traditional buyer-led export ties. The thesis argues that the future competitiveness of “Made in Bangladesh,” particularly in the context of anticipated LDC graduation, hinges on shifting from captive buyer–supplier relations to more relational and design-driven global partnerships.

Dette speciale undersøger, hvorfor mange eksportorienterede beklædningsproducenter i Bangladesh forbliver fastlåst i lavværdiafgørende produktionsopgaver i køberdrevne globale værdikæder, og hvilke strategier der kan “låse op” for funktionel opgradering. Med et kvalitativt multiple-case design forankret i kritisk realisme udvikles CAI-modellen (Capability–Agency–Internationalization) til at forklare uensartede opgraderingsforløb. Analysen bygger på semistrukturerede interviews med centrale aktører i værdikæden, herunder bangladeshiske producenter, globale købere og institutionelle compliance-repræsentanter. Resultaterne viser, at forbedring af driftskapabiliteter og bæredygtighedsoverholdelse i sig selv ikke er tilstrækkeligt til funktionel opgradering. Gennembruddet afhænger af samspillet mellem opbyggede kapabiliteter og strategisk handlekraft—især ledelsens vilje til at investere i innovation, designkompetencer og markedsdiversificering. Tre hovedfund fremhæves: (1) succesfuld opgradering kræver proaktiv strategi frem for reaktiv tilpasning til køberkrav; (2) et vedvarende mellemledelsesgab er en central organisatorisk barriere for skift mod Original Brand Manufacturing (OBM); og (3) virksomheder må diversificere deres internationaliseringsveje ud over traditionelle, køberledede eksportrelationer for at opnå større strategisk autonomi. Specialet argumenterer for, at den fremtidige konkurrenceevne for “Made in Bangladesh”, særligt i lyset af landets forventede LDC-graduering, forudsætter et skifte fra captive leverandørforhold til mere relationelle og designdrevne partnerskaber.

[This apstract has been generated with the help of AI directly from the project full text]