Global Markets, local home-working: Governance and inter-firm relationships in Balinese clothing industry

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Within the industrialization process of the Indonesian economy, the manufacture of clothing has played a significant role. Besides Java, Bali has the second highest agglomeration of industrial activities within this sector. However, in contrast to Javanese clothing firms, which have a strong emphasis on Western-styled clothing, Balinese clothing firms focus on the manufacture of Batik and embroidery products. Based on the commodity chain debate, I will show in this paper how Balinese clothing industry is organized into and governed within the global and local economy. This aims in particular to unravel how these types of garments (Batik and embroidery) can shape and reshape buyer relations. The analysis will also include a discussion of aspects, such as product development and raw material procurement. Furthermore, since Balinese clothing companies organize their production activities within extensive networks of rural home industries, the driving forces behind these specific network co-ordinations will be explored.