Environmental practice in the commodity chain: the dyestuff and tanning industries compared

Abstract

The combined restructuring–commodity chain approach is applied to shed light on processes that explain changes in the spatial and functional division of labour in the dyestuff and tanning industries. Both industries are pollution-intensive and are experiencing a locational shift from the north to the south and increasingly widespread sourcing. A distinction is made between producer-driven and buyer-driven commodity chains. This helps to highlight differences in technological characteristics and explain the relationships between the different nodes in a chain. Price competition may take place in both types of chains, and the strong focus on price competition in both industries is a key factor in explaining their environmental practice. The findings suggest, however, that it may be easier to advance beyond strong price competition in the producer-driven dyestuff chain.