Contributing Factors to the International Competitiveness of a Garment Cluster : A Ningbo Case Study

Abstract: The garment cluster is a diversity and heterogeneous industry. Faced the fiercely increasing competition and rapidly changing markets, how to promote its international competitiveness in the globalization era? The purpose of this dissertation is to find an applicable theoretical framework that could describe the factors attributing to the international competitiveness of a garment cluster. Based on Porter’s Diamond theory and Padmore’s Groundings-Enterprises-Markets (GEM) model, and combined the implications from the Cluster Initiative Performance Model (CIPM), Smiling Curve and Global Value Chain (GVC) as well, we have modified the GEM model and established fourteen hypotheses according to the characteristics of a garment cluster. Consequently, a questionnaire was designed, and a company survey and an institution survey were conducted in the Ningbo garment cluster respectively. Furthermore, a comparative study between the Ningbo garment cluster and the Daegu garment cluster was conducted. The collected data from the surveys were analyzed through the SPSS software. We have calculated the mean value and p-value of each factor and put the results in the modified model. Combined the result of the comparative study between Ningbo and Daegu, the finding in our study suggests there are six contributing factors to the international competitiveness of a garment cluster: internal coordination, strategy, sources, external cooperation, policies, and markets. Theoretically speaking, the modified model has its validity, reliability and generalizability. Specifically, strategy, external cooperation and markets are first and foremost important for the Ningbo garment cluster. We ended the research with future research as well as its limitations.