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Using Information Technology to Enhance Industry Effectiveness: The Case of the Textile Industry
Abstract
This case examines the impact of information technology adoption within the textile industry. The textile industry provides a rich environment for the study of technology adoption since it is comprised of a wide variety of different industries ranging from small firms to large multinational corporations. Firms also vary in technological sophistication. While each firm in the textile industry may benefit from an organized approach to technology adoption, most firms make individual decisions to adopt. Recognizing the need to provide an organized forum for the industry, a major association in the textile industry formed a technology board to review new innovations and technologies. The need for electronic exchange of information was examined and made a priority for the board. The technology board was confronted with the problem of how to serve the members in the organization equitably without regard to company size, technological sophistication, or position in the supply chain. The textile industry can be classified into retailers, product manufacturers, and fabric, fiber, and yarn manufacturers. According to the technology board, the electronic link between manufacturers and retailers is somewhat formalized; however, much work must be done to facilitate linkages between the suppliers and manufacturers. This is not surprising due to the lack of size and sophistication of some suppliers within the industry.
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