Abstract

Globalisation of firms, disruptive business models, and product complexities are driving the emergence of new manufacturing supply networks. These networks face continual network re-configuration due to changing technologies, emerging trade patterns and evolving policy landscape. These complex dynamics result in industrial policies being ineffective and misaligned with current needs of industry for growth. The relationship of the industrial supply network with the government policy system forms the central focus of this research. This research explores how government industrial policies, both national and international, influence the structure of supply networks. The interplay between industrial and institutional interventions is the focus of this research. The research synthesises concepts mainly from two domains, development economics and operations management. This research draws on policy literature and considers resources, institutions, and processes as key policy system dimensions. Similarly, supply network structure, flow, relationship and value from the Operations Management field is used to build an investigative framework for subsequent case study analysis. The research is based on information collected from government and industrial actors, coalitions and sources in 5 countries ​on textile supply networks. Results suggest that the supply network configuration has a significant impact on government policy development and that particular firm-firm coalitions within given configurations, significantly influence the policy system. These influences between industrial actors and institutional players are bi-directional in nature. Understanding such influences in the context of a policy system can lead to the design of interventions and supply networks.