From The Perspective Of Supply Chain Research Evolution Of Industrial Agglomeration

As capital, information and labor more freely allocated globally, there are much fiercer competitions between firms now. Multinational firms enhance their competence through vertical integration, while small and middle firms gather in a special place to form industrial clusters to win in the competition. This paper focused the latter one and tried to explain their supply chain, hoping to provide some theoretical support for industrial clusters’development and industrial transformation. This paper selected light textile clusters in Shaoxing, Zhejiang province as study object. Through analyzing cases of three local manufacturers and China Textile City’s development, this paper summarized supply chain and its characteristics in light textile industrial clusters. The manufacturers and downstream traders cooperate but also compete with each other in supply chain. But both of them are in the lowest value of the industrial chain. In order to improve the industry, we need cut down some unnecessary cost and shorten supply chain, then we can push firms to higher value field so that to upgrade textile industry. This study is cross over industrial clusters and specialized market, not only in point of view of industrial economics or institutional economics, but in microscopic view of supply chain to macroscopic view of industry, has given some interesting theoretical support for industrial upgrade policies.