Abstract:
This thesis explores environmental upgrading in the context of the apparel
industry of Pakistan through the conceptual lens of the GVC framework and seeks to
fill a theoretical and empirical void that presently exists in environmental upgrading
and governance in GVC and marketing literatures.
The thesis examines the type of environmental certifications acquired by the
suppliers, the benefits and challenges of such upgrading, and perceived changes in
buyer-supplier relationships along political, social, economic, operational and
technological dimensions. A cross-sectional study has been conducted through a
qualitative study of suppliers, buyers, PEPA, auditors and buying houses. The
interviews were transcribed, and analyzed using multiple techniques of matching data
to the arguments, rival explanations and pattern matching.
Findings suggest that environmental upgrading altered the political
relationships in terms of monitoring and compliance mechanisms. Changes were also
observed in the social and technological relationships. The study concludes that
environmental upgrading does not generate eco-rents, and the mechanisms through
which it is carried out strategically positions certification bodies and not suppliers
within GVC. Lack of strategic intent, energy crisis and prevailing terrorism situation
in the country has rendered Pakistani suppliers uncompetitive in apparel trade.
Suppliers need to overcome these challenges by developing strong international
linkages and implementing collective environmental solutions. It is also suggested
that there is a need to formulate a universal environmental standard. Global buyers
that claim sustainability within their GVC must also financially reflect it in their
sourcing practices from developing countries. In the end, recommendations for future
research are provided.
