The Coevolution of New Organizational Forms in the Fashion Industry: A Historical and Comparative Study of France, Italy, and the United States (original) (raw)

Managerial Competencies for Organizational Flexibility: The Luxury Goods Industry between Tradition and Postmodernism

Sciences Po publications, 2000

Luxury goods are selling well and the growth of the industry has barely been slowed down by the Asian crisis (Les Echos, 04-30-1998, 09-25-1998; Le Figaro, 04-06-1998; Financial Times, 04-24-1999). As in many other growth markets, though, good results are coming together with a fair amount of turmoil. Many changes are redefining environmental conditions and new challenges are creating significant turbulence for players in the industry at a global level (Ecole de Paris, 1998; Woman’s Wear Daily, 02-10-1998; Liberation, 03-06/07-1999). Our question in this paper is whether, in the face of such global trends, luxury goods companies have reacted and attempted to adapt. We are interested by changes and evolutions with an impact on organizational structures but also by the potential redefinition of managerial roles and competencies. [First paragraph]

Firm entry and institutional lock-in: an organizational ecology analysis of the global fashion design industry

Industrial and Corporate Change, 2011

Few industries are more concentrated than the global fashion industry. We analyse the geography and evolution of the ready-to-wear fashion design industry by looking at the yearly entry rates following an organizational ecology approach. In contrast to earlier studies on manufacturing industries, we find that legitimation effects are local and competition effects are global. This result points to the rapid turnover of ideas in fashion on the one hand and the global demand for fashion apparel on the other hand. We attribute the decline of Paris in the post-war period to 'institutional lock-in', which prevented a ready-to-wear cluster to emerge as vested interested of haute couture designers were threatened. An extended organizational ecology model provides empirical support for this claim.

Globalization, organizational size, and innovation in the French luxury fashion industry: Production of culture theory revisited

Poetics, 1997

According to production of culture theory, small organizations are more likely to produce innovative cultural products than large organizations; large organizations constitute oligopolies that control their markets and remain innovative by coopting smaller organizations, along with their creative talent. A study of the French luxury fashion market shows that a few large companies controlled by conglomerates dominate the market in terms of sales but have little influence on styles. Rather than coopting smaller firms, large firms use the myth of the designer as artist and connoisseur to enhance the saleabilityof products other than clothes, although the designer is increasingly an employe rather than an owner or a manager. Whether small finns influence styles depends on economic conditions that affect their capacity to compete with larger firms. A factor that has been ignored by production of culture theory, the increased cost of entry for new firms due to globalization of markets, inhibits their capacity for innovation and survival. Examination of rankings of fashion innovativeness by fashion experts over a period of seventeen years showed that, at the beginning of the period, when costs of entry were relatively low and the number of competitors was relatively small, small fh'ms were able to achieve recognition for their innovations. By the end of the period, the same small firms, now grown to medium-size firms, were still influential, while new small firms, competing with larger firms in a market where costs of entry were high, were less likely to be perceived as innovative and may actually have been less innovative, since their precarious financial situation precluded experimentation. Rather than coopting smaller firms, large firms benefited from the global expansion of their market to sell products other than fashionable clothing. Successful new firms were generally foreign and well-financed.

The internationalization process of Italian fashion fi rms: the governance role of the founding team

2010

This study aims at exploring the process of internationalization in the Italian fashion firms, focusing on strategy-structure fit and the governance role of the founding team in providing such a fit. It does so with a single case study of a leading fashion firm. It suggests that classic deterministic theories about strategy-structure fit in growing firms offer poor guide. The strategy is entirely \emergent" and inspired by the specific talents of the founding team. Evidence confirms the causal link between strategy and structure: company structure is network based and evolves according to the emerging strategy. However, the development route does not follow any deterministic model: Uppsala's model of incremental and cognitive internationalisation, especially in its revisited and network based form, appears to be the more appropriate reference for the case, characterised by creative dynamics that are constantly evolving, following the vision and strategy that are constantly ...

The Rise of the Corporation in a Craft Industry: Conflict and Conformity in Institutional Logics

Academy of Management Journal, 2002

This study tests a theory of how a craft-and profession-based industry adopted multidivisional organization, examining higher education publishing from 1958 through 1990. 1 combined interviews and historical analysis to identify two institutional logics, an editorial and a market logic. Hazard rate models of differences in the effects of these logics showed a decrease in tbe importance of professional determinants of organization structure and an increase in tbe salience of its market determinants. Tbe covariates explaining tbe rate at which firms divisionalized changed as a consequence of their strategic and structural conformity with the prevailing institutional logic. Publishing was like a small town where everyone knew everyone else and felt a kinship that was not to be found in ordinary commercial enterprises.. .. Poihaps the greatest change, however, ... is the imposition of the corporate mßntality on a business diametrically opposed to it in the pasl.. .. Methods of corporate organization have burdened publishing houses with so many divisions and subdivisions designed for efficiency.. .. The corporations owning ])iiblisbing bouses recruit more and more, particulaily for upper-level jobs, from tbe ranks of nonhook businesses. Consequently, wbat lies between tbe covers hardly matters as long as it can be sold by modern marketing tecbniques. (Tehbel, 1987: 463-464) Structural change in organizations is a subject that continues to interest researchers in the fields of strategy and organization and management theory.

Strategy and Structure in the Italian Fashion Industry: A Case of Internationalisation

Transition Studies Review, 2009

Many SMEs in the Italian fashion industry do not find a fit between strategy and structure able to open them to growth and new opportunities in emerging international markets. Through an in depth analysis of a successful business case, a contribution is made to the study of strategy-structure fit in the Italian fashion industry, with particular reference to the international growth phase. The case confirms the causal link between strategy and structure. However, the development route in the fashion sector does not follow the historical model analysed by Chandler: Uppsala's model of incremental and cognitive internationalisation appears to be the more appropriate reference for Italian ''industrial networks'', characterised by creative dynamics that are constantly evolving, and strong needs for structural flexibility and strategic change.

Consocia et Impera: How French and Italian fabric producers cooperate to conquer the 'dominant design' in the fashion industry

Gibbert, M., and Durand, T. (eds.), Strategic Networks: Learning to Compete, Wiley-Blackwell., 2006

Concertation is a process used by French and Italian producers of high quality fabrics to build and sustain – season after season – their position as world leaders in the fine fashion industry, despite strong competition from emerging countries. In this chapter, we employed ethnographic methods to make sense of the concertation process. Concertation, we argue, is essentially an interpretive enterprise, where a favorable business environment is socially constructed through the interaction of key actors. An outcome of the concertation mechanism is a social stratification of the marketplace, that is, leaders versus followers and innovators versus imitators, which has implications in terms of marketplace status and premium prices. Our ethnographic interpretation of the concertation process has managerial implications, as it suggests guidelines along which to manage interorganizational collaboration among competitors.