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      Effects of Physical Sample Approval Practice on Performance and Competitiveness of Export-Oriented Garment Industries in Ethiopia

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      Journal of Engineering
      Hindawi Limited

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          Abstract

          The textile sector is one of the major economic pillars in Ethiopia. The sector is generating foreign currency by exporting textile and finished garments. However, the competitiveness of this sector is not as per the expectation due to the long delivery time and excessive manufacturing cost. This study aims to assess the main approval processes in handling garment samples between manufacturers and buyers. The study also examines the effect of physical sample approval process on export performance and competitiveness of the industry. The study employed an explanatory and exploratory multiple-case study research approach in four apparel exporting companies. Both primary and secondary data were collected using questionnaires, semistructured interviews, and observation. Result from this study showed that the export performance and competitiveness of apparel industries are mainly affected by the traditional sample approval system due to long delivery time, unnecessary approval process cost, and poor inventory management of the sampling department. The result also indicates that long lead time and costly process system made the sector incompetent in international market. Therefore, it can be concluded that the apparel manufacturing and exporting industries in Ethiopia should modify their approach to nurture better speed and comparably lower process costs. Ethiopia’s apparel sector needs also to invest in creating a reliable quality manufacturing system to grow and meet government targets for expanding export sales.

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          Author and article information

          Contributors
          Journal
          Journal of Engineering
          Journal of Engineering
          Hindawi Limited
          2314-4904
          2314-4912
          August 27 2020
          August 27 2020
          : 2020
          : 1-8
          Affiliations
          [1 ]Ethiopian Institute of Textile and Fashion Technology, Bahir Dar University, Bahir Dar, Ethiopia
          Article
          10.1155/2020/9760576
          9bdfab10-bfba-4db7-a198-31cf837610d7
          © 2020

          http://creativecommons.org/licenses/by/4.0/

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