Textile and Apparel Industries

An Exploratory Assessment of Sourcing Criteria of the Fair Trade Apparel and Soft Goods Supply Chain

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Abstract

Research indicates that corporations that implement fair trade practices within their supply chains or have certified fair trade products see increased sales and profits due to economies of scale and brand positioning. However, much of the existing research disregards fair trade's true purpose, and instead follows an instrumental perspective that places economic concerns above social or environmental concerns. This highlights the need for an expanded view of fair trade supply chains that focuses on sources of non-economic and relational value. This study examines sourcing criteria and characteristics of fair trade verified (FTV) companies through a grounded theory approach. The findings indicate that FTV companies select artisan groups based on a mixture of relational and functional capabilities. The right balance of relational and functional capabilities is negotiated based on company resources, in-country structure, and culture that can create a sustainable competitive advantage.

Keywords: fair trade, fair trade supply chain, sourcing criteria, supplier selection

How to Cite:

Schumm, C. Z. & Linda, N. S., (2022) “An Exploratory Assessment of Sourcing Criteria of the Fair Trade Apparel and Soft Goods Supply Chain”, International Textile and Apparel Association Annual Conference Proceedings 79(1). doi: https://doi.org/10.31274/itaa.15977