The Diffusion of Modern Manufacturing Practices: Evidence from the Retail-Apparel Sectors

Hwang, Margaret Y.; Weil, David

doi:10.2139/ssrn.139275

The Diffusion of Modern Manufacturing Practices: Evidence from the Retail-Apparel Sectors

63 Pages Posted: 16 Nov 1998

See all articles by Margaret Y. Hwang

Margaret Y. Hwang

Pomona College - Department of Economics

David Weil

Brandeis University - The Heller School for Social Policy and Management

Date Written: January 1998

Abstract

Like many consumer product industries, the apparel industry is being affected by information technology-based changes in the manufacture and retailing of products. Based on detailed business-unit level data, we show that observed heterogeneity in the adoption of modern manufacturing practices by apparel business units can be explained by changes in retail customer requirements for rapid replenishment of products. The incentive to adopt new practices is further increased by complementarities between manufacturing practices. Finally, sequential rather than simultaneous adoption of complementary practices occur as firms respond to changes in product demand.

JEL Classification: L23, L67

Suggested Citation: Suggested Citation

Hwang, Margaret Y. and Weil, David, The Diffusion of Modern Manufacturing Practices: Evidence from the Retail-Apparel Sectors (January 1998). Available at SSRN: https://ssrn.com/abstract=139275 or http://dx.doi.org/10.2139/ssrn.139275