Value and fairness in US textile industry partnerships

Abstract

PurposeThe purpose of this paper is to develop a demographic profile and to examine the types of value (social and economic) and fairness received from strategic partnerships between members of the US textile industry with their US suppliers and vendors.Design/methodology/approachBased on a theoretical Relationship Retention Model by Gassenheimer and Houston and incorporating Transactional Cost Analysis, social exchange theory and distributive justice as theoretical frameworks, a quantitative instrument measured partnership economic value, social value and fairness. Standard least squares regression analysis combined with bootstrap analysis was used in data analysis.FindingsResults indicated that a significant relationship (p>0.0001) existed between social value and fairness. These findings refute the theoretical model, which shows both economic value and social value to be equally important to a successful partnership.Research limitations/implicationsLimitations arose from adapting a theoretical model to a testable path model, a limited number of partnerships and that this survey did not involve time‐series or longitudinal research methods. Future research may include dyadic research, a longitudinal study or the scope of the survey may be broadened to the global level.Practical implicationsIndustry can use study findings to evaluate their own strategic partnerships, while results may be taught in academia as part of a strategic planning or management course or used as a basis for further research.Originality/valueThis study fills a void in current research literature by: using an empirical approach to analyze strategic partnerships in the US textile industry, and testing a previously untried theoretical model.