Internationalization and Value Creation in the Global Textiles and Apparel Industry: A Comparative Analysis of Lithuania and Moldova

This study examines the internationalization process within the textiles and apparel industry in two countries: Lithuania and Moldova. In particular, this study shows how the evolution by an industry toward greater internationalization is intricately linked to its ability to move up its specific value chain. This analysis compares and contrasts the ability of this industry in a Western European (Lithuania) and a nonaccession Eastern European country (Moldova) to move up the textiles and apparel value chain and so achieve higher levels of internationalization. In examining and relating the relevant factors, this analysis provides insights into – and suggests important modifications to – important concepts and themes such as the stage theory of internationalization, the role of “inward-outward” linkages in the value creation process, the mechanism of the internationalization of small and medium-sized enterprises, and the part played by the European Union in the internationalization (and thus globalization) process.