Network organizations in the Turkish textile sector

Abstract

This paper examines the network organizations in the Turkish textile sector. The disadvantage factors such as limitation of the development of enterprise capabilities, co-ordination problem, dependence on the ordering company, undervaluing alternative investments and future opportunities are investigated and ordering company pushes the enterprise for competitive prices in contract manufacturing textile sector in Denizli, Turkey. Besides, the research identifies how leader firm's decisions affect the contract manufacturing textile firms. "Weakness of competitive power about brand" and "difficulty of opening to foreign markets with brand" appear as the most important factors for Denizli textile firms to contract manufacturing. Also, level of cooperation and trust among Denizli textile firms is found low. In the light of the data the contract manufacturing firms' problems are discussed and suggestions for future research are presented. © Özlem Özkanli, İbrahim Durak, 2007.