Production sourcing strategies and buyer‐supplier relationships: A study of the differences between small and large enterprises in the Hong Kong clothing industry

Purpose – The main purpose of this paper is to compare the differences between the small and medium‐sized enterprises (SMEs) and the large enterprises (LEs) of the Hong Kong clothing industry in terms of the adoption of production sourcing strategies and buyer‐supplier relationships.Design/methodology/approach – A questionnaire survey was conducted among 120 small to large‐sized clothing firms in Hong Kong.Findings – The results show that there were certain differences between SMEs and LEs with regard to production sourcing: LEs are more able to disperse production globally; LEs are more likely to adopt single sourcing, while SMEs prefer multiple sourcing; SMEs tend to use a combined strategy of in‐ and outsourcing, whereas LEs select either insourcing or outsourcing; and LEs are more likely to develop a formal strategic alliance with their trading partners.Research limitations/implications – The adoption of sourcing strategies and buyer‐supplier relationships may change over time: future research should ...