Differences in Survival Strategies among Footwear Industrial Districts: The Role of International Outsourcing

Abstract

During the 1990s, a further development of the industrial district model was observed in some developed countries and industrial sectors. Due to the intense process of globalization, footwear district firms have gradually relocated some manufacturing activities through an international extension of their business networks. In this manner, the traditional pattern of integrated shoemaking is being replaced by a global supply chain stretching across different countries and cultures. Even though Spain has always been positioned at the top of the rank of footwear exporters, little attention has been paid to how Spanish footwear districts are handling the global competition and strategies implemented in order to achieve superior efficiency rates. This paper attempts to describe the international outsourcing activities (one of the most expanded strategies) in four footwear industrial districts. To reach our objective, data about imports of components and outward processing trade in provinces of the districts considered are deeply analysed. Special consideration has been paid to differences between provinces and districts. Finally, based on the issues reviewed and results obtained in previous sections, our paper includes conclusions and implications for policy makers and practitioners.

Acknowledgements

The author wishes to acknowledge the solicitude of the anonymous referees and the editor that read several drafts of the paper and provided helpful comments. Financial support by the Consellería de Empresa, Universidad y Ciencia of the Generalitat Valenciana under the project GV05/090 is also gratefully acknowledged.

Notes

Other concepts different than industrial district have been also used to describe the clustering of different economic actors: innovative milieux, learning regions, cluster of innovation or technology district to mention a few.

In literature, the term “international outsourcing” is sometimes referred to as simply transferring the production segments outside the country, either to a non-affiliate or an affiliate company.

Clasificación Nacional de Actividades Económicas (National Classification of Economic Activities).

Using the same data as Boix and Galletto (Population Census, 2001), Albacete, Alicante, the Balearic Islands and La Rioja accounted 84.1%, 97.24%, 80.6% and 83.6% respectively.

Unit value is the value/volume ratio.

Weight of imports of footwear components in total sectoral imports.

International Delocalization Index = Imports of OPT / Imports + Exports of OPT.

Deviation has been obtained using (P_X–P_M)/P_M.