This paper explores the competitive basis of manufacturing suitable for medium-sized sewing firms which aim at overseas production. Since the skill of operators directly affects the competitiveness of firms of labor-intensive industries such as the sewing industry, this paper extracts HRM as the most important factor from the various factors of garment manufacturing. After that, this paper tries to identify which type of HRM will bring competitiveness to firms operating in East Asia through two case studies.
For that purpose, this paper focuses on two sewing firms, both of which enjoy competitive positions in Japan. Although both of their factory operations have been sound in Japan, in East Asia their performance is opposite to each other.
The Firm A, a successful case, has developed HRM far before they decided to go overseas, in setting up to extend the working territory of each operator in Japanese factories. Under such type of HRM, almost every operator not only extended her working territory, but also expanded the knowledge regarding garment manufacturing. As a result, almost every operator of the Firm A has come to have capabilities enough to conduct, not one, but several different works. Thanks to their capabilities to conduct several different works, they can work well in ever-changing processing lines in which frequent changes in specifications, numerous kinds of materials, and everyday change in lines and work organizations take place.
By transferring such type of HRM, the Firm A has been able to manage its three overseas sewing factories, and all of them have been making profits. This paper investigate the HRM and work organization of its factory in China, and found that by transferring HRM from Japanese factories, Chinese operators has acquired capabilities equivalent to that of Japanese operators. With that capability, Chinese operators also can work well in ever-changing processing lines. Consequently, its factory in China is able to manufacture garments that have sophisticated tastes as well as good quality, both of which intertwiningly fulfill demands of the Japanese moody market.
The Firm B has developed the different type of HRM. It has requested its sewing operators to be equally skilled, to be equally performing, and to be devoted in a single unchangeable work. In order to manage ever-changing processing line well, many extra liaison men were deplored in lines. Having two types of employees in processing lines, one of which consists of sewing operators devoted in a single unchangeable work, the other is organized by liaison men, the Firm B's Japanese factories have supplied the Japanese moody market with garments that are well-qualified and sophisticated.
The Firm B's HRM, however, has not worked well in East Asia, since it could send only four liaison men from Japan. Without sufficient number of liaison men, the local sewing operators who have been trained to conduct a single unchangeable work could not manage the everyday change in processing lines. Consequently, its factory in East Asia has suffered from a pile of faulty products, all of which have been sent to Japanese factories for the re-inspection and the correction. This extra practice burdened the Firm B with further costs. It also led to the delay of delivery. For those reasons, the Firm B's overseas factory was closed after 3-year-operation.
Considering these two cases explained above, this paper deduced one conclusion, that is, a type of HRM which enables operators to manage everyday change in processing lines is very important not only for factories in Japan but also for factories in East Asia. Therefore, Japanese medium-sized firms aiming at overseas production should develop such type of HRM previous to the expatriation.
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