RT Article
T1 Sourcing in an Increasingly Expensive China: Four Swedish Cases
JF Journal of business ethics
VO 97
IS 1
SP 119
OP 138
A1 Fang, Tony
A1 Gunterberg, Caroline
A1 Larsson, Emma
A2 Gunterberg, Caroline
A2 Larsson, Emma
LA English
YR 2010
UL https://ixtheo.de/Record/1785640143
AB China has long enjoyed its position as the world’s cheapest production country. However, this position is being shaken due to the increasingly rising costs in China in pace with China’s rapid economic development. China’s New Labour Contract Law which took effect from 1 January 2008 has further pushed the labour costs in China in general. The purpose of this article is to arrive at an in-depth understanding of why foreign firms conduct sourcing in China where sourcing is becoming increasingly expensive. The experiences of four Swedish companies in the textile and clothing industry (TCI) conducting sourcing in China are presented. Our findings show that sourcing in China is becoming both cost- and strategy-driven. Companies purely chasing the cheapest production would most probably consider leaving China, whereas companies with a long-term strategic intent and a high level of business ethics and corporate social responsibility (CSR) practices will retain all or most of their sourcing activities on the Chinese soil despite the rising costs.
K1 textile and clothing industry (TCI)
K1 Swedish companies
K1 Price
K1 Manufacturing
K1 sourcing
K1 CSR
K1 China
DO 10.1007/s10551-010-0499-9