Trajectories of technological capability accumulation and learning modes: evidence from Brazilian clothing industryABSTRACT
While technology innovation and learning research draw considerable interest, most studies neglect low- and medium-tech (LMT) industries, which comprise over 70% of the GDP in emerging economies like Brazil. This study bridges that gap by analyzing technological capability accumulation and learning modes within the Brazilian clothing industry. Based on qualitative, longitudinal research with two Brazilian clothing firms, the findings reveal similar trajectories. Both firms advanced from production technological capability (Level 1) to intermediate innovation (Level 3) in management and product. In production organization and equipment, they reached basic innovation (Level 2), with varied speeds of accumulation. Firms primarily relied on the DUI (Doing, Using, and Interacting) learning mode, largely underutilizing STI (Science, Technology, and Innovation) mechanisms. The study underscores the significance of effectively managing learning modes by employing both STI and DUI learning in tandem to facilitate the development of innovation activities and, consequently, technological capabilities.
KEYWORDS
Clothing industry; Technological learning; Innovation; Innovation capability
1. Introduction
Achieving competitive advantage is a crucial goal for organizational success, contributing to the growth and sustainability of companies (MOMAYA, 2019). In light of this, innovation capabilities emerge as one of the most important competencies in the current world, as it is capable of modifying the rules of competition and creating sources of competitive advantage and superior performance (BELL; FIGUEIREDO, 2012; AHMAD et al., 2018; KIMURA, 2019; RANJBAR et al., 2019; WANG; JIN; ZHOU, 2023).
For the construction of innovation capabilities, investments in technological learning are fundamental. In other words, it is necessary to acquire, develop, share, and codify knowledge so that firms become capable of accumulating increasingly complex innovative capabilities, enabling them to reach higher levels of competitiveness (BELL; PAVITT, 1993, 1995).
Therefore, understanding changes in firms' innovation capabilities over time helps in comprehending their technological potential and competitive advantage (BELL; FIGUEIREDO, 2012), besides being a way to understand the industrialization process of emerging countries (IACONO; NAGANO, 2019; ALBUQUERQUE, 2023).
However, investigations into innovation capabilities trajectories have been predominantly focused on industries characterized by high technological intensity (LEE; LIM, 2001; HOBDAY; RUSH, 2007; QUADROS; CONSONI, 2009; ARIFFIN, 2010; MIRANDA; FIGUEIREDO, 2010; LEE; YOON, 2015; FRANCELINO et al., 2019; DAL BELLO; FIGUEIREDO; ALMEIDA, 2020). The results of these studies carry both theoretical and practical importance, aiding in the identification of key factors in firm innovation development, such as the capabilities accumulation process, learning strategies, and the role of public policies. This enhances the understanding of the significance of innovation capability trajectories in high-tech industries. Nevertheless, according to Hirsch-Kreinsen, Jacobson and Robertson (2006) and Robertson, Smith and von Tunzelmann (2009) research on innovation capabilities trajectories within low-technological-intensity (low-tech) industries are limited (see some exceptions in FITZ-OLIVEIRA; TELLO-GAMARRA, 2023; PIANA; BRUSTOLIN, 2023; YORUK et al., 2023; PIANA, 2025). The lack of studies can generate a mistaken view that there is no innovation in low-tech industries or a gap in how innovation occurs in these industries.
Therefore, the current study is primarily driven by evidence indicating that the low and medium-tech industries have played an important role in the economic and innovation growth of some countries (HIRSCH-KREINSEN et al., 2006; HIRSCH-KREINSEN, 2013; KIM; CHOI, 2020) including Brazil (DANTAS; BELL, 2011; FIGUEIREDO; PIANA, 2021; PIANA, 2016, 2025; PIANA; BRUSTOLIN, 2023; PIANA; COSTA, 2020; ZAWISLAK et al., 2013). In Brazil, the low-tech industry is responsible for a large part of GDP (INSTITUTO BRASILEIRO DE GEOGRAFIA E ESTATÍSTICA, 2023). Specifically, the clothing industry in Brazil is the second-largest job-generating sector in the manufacturing industry. Furthermore, it employs over 1.36 million direct workers, accounting for 6.6% of the revenue of the manufacturing industry, and it has more than 24.6 thousand formal production units across the country (ASSOCIAÇÃO BRASILEIRA DA INDÚSTRIA TÊXTIL, 2021).
Given the significance of the industry for Brazil and the lack of studies in the field of innovation in low-tech industries, this paper is structured around the question: How did learning modes shape the technological capability trajectory in the Brazilian clothing industry between the mid-1980s and 2022? The research design was operationalized from the double in-depth and inductive case study. To examine this question, the paper uses a framework that captures levels of technological capabilities proxied as revealed activities. The learning is based on two modes: ‘science, technology and innovation’ (STI) and ‘doing, using and interacting’ (DUI).
This paper is structured as follows: Section 2 presents the paper's theoretical background. Section 3 details the methods. Section 4 presents the findings. Section 5 provides a discussion of results, contributions to management practice and public policies and suggestions for future research.
2. Framework for measuring technological capabilities and identifying learning modes
Technological capability encompasses the knowledge residing within individuals, organizational structures, technical systems, physical infrastructure, and products, allowing companies to produce and innovate. This accumulated knowledge forms a foundation for progressively advancing technological innovation, ultimately enabling a country or organization to approach and potentially reach the technological frontier (BELL; FIGUEIREDO, 2012).
Regarding the operationalization of the technological innovation capability construct, the bulk of extant studies in these mainstream bodies of literature uses innovation capabilities through R&D expenditures and patenting statistics as a proxy. This is mainly because most of these studies deal with firms operating in advanced economies, where, in most cases, in high-tech industries where, in most cases, high-level innovation capabilities already exist (ARIFFIN, 2010; FIGUEIREDO; LARSEN; HANSEN, 2020). The present research adopts a different approach based on Lall (1992) and, Piana and Brustolin (2023). So, the study operationalizes the technological capabilities construct through a ‘revealed capability’ approach (SUTTON, 2012). In other words, firms’ capabilities are revealed in their innovation and production activities. The production and innovation activities are classified in terms of functions and levels of increasing novelty and significance.
Table 1 presents a scale for measuring technological capabilities in the clothing industry with examples of activities that express the functions and levels of technological capability.
To operationalize the learning construct, an approach was used that combines two coexisting and interactive modes of learning for innovation: STI and DUI learning modes. Jensen et al. (2007) contend that there is much research on STI learning mode, especially about scientist training and R&D, however, there is comparatively less investigation into the connection between DUI mode learning and innovation performance.
Furthermore, although there are many studies that examine STI/DUI model learning in different industries, they are mainly based on large samples of companies using cross-sectional design and econometric analysis, particularly in advanced economies (APANASOVICH, 2016; FIGUEIREDO; LARSEN; HANSEN, 2020). Most research does not examine, at the firm level, how firms use and combine STI/DUI learning strategies to create and accumulate technological innovation capabilities, especially in the context of low-tech industries in emerging economies.
Therefore, to operationalize learning, the research uses as a basis the study by Jensen et al. (2007), Figueiredo, Larsen and Hansen (2020) and, Figueiredo and Piana (2021) and insights from the fieldwork. Table 2 presents examples of STI/DUI learning modes underlying technological capability in the context of clothing industries.
3. Methods
3.1 Research context and case selection criteria
The research is interested to analyses the clothing industry in Brazil because it is (i) the second largest Brazilian industry in terms of jobs generation; (ii) responsible for 3.5% of the Brazilian GDP and (iii) the fourth largest industry in the world, behind only China, India and Pakistan (ASSOCIAÇÃO BRASILEIRA DA INDÚSTRIA TÊXTIL, 2021; GOTEX, 2017). Brazil is the only complete chain in the West, being the one that produces since cotton, transforms it into threads, produces the fabric, benefits, produce, make fashion shows, in addition to strong retail (ASSOCIAÇÃO BRASILEIRA DA INDÚSTRIA TÊXTIL, 2021; GANZER, 2017).
This study chose two information-rich firms’ cases so that they could substantiate the research question and simplify the analysis (PATTON, 2002), while providing relevant examples of the issues and enabling comparison between the two cases. The choice double case study was due to the need and interest in observing the phenomenon of the technological capability accumulation over time and with a high degree of detail (PATTON, 2002). Furthermore, Nelson (2011, 2012) highlights the importance of qualitative methods in the study of technological advancement, arguing that they offer a deeper understanding than quantitative data alone. According to the author, detailed case studies are especially illuminating for understanding inventive activity.
In the decision-making process regarding the choice of firms, the following points were analyzed: (i) be a clothing company open to research; (ii) be a complete clothing company, which includes everything from the creation and development sector to the production of the final product; (iii) have a significant trajectory to be analyzed (more than 30 years of existence). Following these criteria, Firm X and Firm Y were chosen and the period analyzed covers the mid-80s to 2022. “X” and “Y” names were used due to the lack of authorization of the real names of the companies.
The selected firms are localized in Paraná state. The Paraná's clothing industry is the second largest employer in the state's manufacturing industry, accounting for 13% of formal jobs and represents 8.17% of the national textile and clothing GDP. Also, Paraná is the fifth largest fashion hub in Brazil (GATTI, 2019). Specifically, the firms are localized in the Paraná's north, region known as the Brazilian “fashion corridor”.
In addition, the firms were selected because they (i) have been in the market for more than 30 years, that is, the firms followed the period in which the coffee economy began to fall in the State of Paraná (1990s) and new forms of local economy started with the opening of small and micro firms in the clothing industry (GOMES, 2013); (ii) are economically representative of the Paraná's industry. The firms employ more than 1,500 people directly, produce more than 2 million pieces a year and sold in more than 10 countries and; (iii) contain from the creation and development sector to the manufacture of the final product.
3.2 Data collection techniques and sources
To collect data to reconstruct the trajectories of technological capabilities accumulation and identify learning modes, 31 interviews were carried out, with an average duration of 40 minutes. The interviews were conducted with Directors of Production Planning and Control, Managers (Warehouse and Cut Managers, Production Managers), Coordinators (Communication Coordinators), Supervisors (production, dispatch, maintenance, modeling, shirt finishing quality, twill finishing quality, pressing), Industrial Administrative Assistant, Quality Inspector, Fashion Designer, Communication Analyst and Engineers. Also, data were collected during visits through observations, consultation of documents, informal interviews, and consultation of secondary data through websites.
3.3 Analysis procedures
The examination proceeded through the following stages: (i) transcription of interviews; (ii) organization of evidence; (iii) highlighting evidence; (iv) interpretation of evidence based on the construction of matrices (MILES; HUBERMAN, 1994). After organizing the data, the analysis periods were divided into Emergence Phase and Consolidation Phase. The first period spans from the establishment of the companies (mid-1980s and 1990s) until the mid-2010s (Emergence Phase). In the mid-2010s, significant managerial milestones occurred for both companies (e.g., merger). The second period covers mid-2010s to 2022 (Consolidation Phase). The analysis by milestones and phases is an approach inspired by other authors such as Dantas and Bell (2011) and Figueiredo, Larsen and Hansen (2020).
Based on the organized evidence, the consolidation of analytical tables/matrices and the creation of the first descriptive reports of the evidence, data analysis began in a more refined way. Various analytical techniques were used, including observing patterns and trends and looking for negative indications for conclusions to be drawn from the data (MILES; HUBERMAN, 1994). After that, the case studies were written in a comparative manner.
4. Findings
4.1 Trajectory of technological capability accumulation in the “Management” area and learning modes
4.1.1 Emergence phase
During the Emergence Phase, the founding partners of Company X already had previous management experience, acquired through a retail business selling clothing, footwear, and jewelry. As it was solely a commercial venture, business management was conducted informally, with informal sales techniques and rudimentary management tools, characterizing a production capability (Level 1).
With the establishment of their own manufacturing, the management approach needed to be refined for proper and efficient coordination of the company. The company formalized its management practices such as (i) purchasing planning, (ii) sales targets, (iii) quality control processes, (iv) order formalization, (v) inventory and order control, and (vi) personnel hiring. During this initial period, the company demonstrates its production capability (Level 1).
In 1987, Company X increased the distribution and production of its pieces, resulting in new hires (totaling 640 direct employees) and improvements in the company's logistical processes. In 1989, Company X entered into a partnership with another company in the same industry, which produced men's shirts. Therefore, adjustments were made to sales management and formal management procedures for the partnership, demonstrating basic innovation capability in management (Level 2).
In 1997, Company X began investing in software to improve management activities, requiring training from the supplier for the entire management team of the company. Also, in 1997, the company launched a new brand for men's tailored clothing, which required the creation of a specific marketing management model for this brand, demonstrating intermediate innovation capability (Level 3).
In the late 1990s and early 2000s, a merger between the two companies occurred, which became known as Group X. The necessary changes in terms of management for the new composition of the company (merger, internationalization, creation of a new factory) demonstrate the company's intermediate innovation capability (Level 3).
The beginning of management activities at Company Y is marked by the prior knowledge of the founding partners, such as planning and techniques for controlling and monitoring basic routines in the managerial areas of the company, demonstrating production capability (Level 1).
From the 2000s, Company Y advances in the launch of new product lines such as the beach line, which forced the company to make adaptations in the management of these new lines (basic innovation capability – Level 2), through hiring and in-depth feedback from employees.
After hiring, the human resources department continues to develop their skills through integrations with the company's departments. These integrations serve as learning mechanisms related to internal training, as it is a moment of knowledge exchange among employees from all departments. There is also a Fashion Tour - an internal training program that shares information and delivers updated materials about the textile industry and the company - as well as a welcoming moment between old and new employee.
Additionally, the company has begun to offer educational incentives (especially for “management” and “product” areas) to employees through benefits such as educational credit. According to the HR Manager, “the employee seeks a different course, and the company subsidizes it, paying for the course if it deems it interesting for that particular person”.
At the end of the emergence phase, the trajectory of technological capability accumulation of Company X in the “management” area evolved into intermediate innovation technological capabilities (Level 3), and in Company Y into basic innovation technological capabilities (Level 2).
4.1.2 Consolidation phase
In 2017, Company X hired a consultancy to make changes to management processes. As a result, the industrial intelligence sector was created, whose objective was to make the product more suitable for production. Training was offered to people responsible for the new sector.
In 2018, Company X transitioned its legal structure to a company limited liability company. This change modifies the management format, which becomes open, a necessary movement for companies seeking to grow, demonstrating intermediate innovation capability (Level 3).
Also in 2018, the company's e-commerce began, in partnership with Dafiti, a marketplace platform. Through the partnership with Dafiti, Grupo X acquired the knowledge to create its own sales website. Consulting was also hired for media support. It was necessary to adapt the marketing strategy, delivery logistics, in addition to the process of introducing the brand to this type of market.
In 2019, expertise was hired to manage the commercial and marketing area in the format of a mini marketing agency within the company to produce advertising materials. Previously, Group X had a marketing sector and a commercial sector that were not focused on customers and there were no KPIs (Key Performance Indicators) for potential regions, customer profiles, etc.
With this evolution of departments, there was a need to also evolve the Group's own brands. A consultancy agency was hired to carry out the rebranding of the brands. Therefore, the logo, brand intention and colors were changed. The brand was repositioned in the market, with clothes that range from professional to happy hour and between 2019 and 2023, Grupo X began the project to open physical stores across the country.
In the case of Company Y, the company begins a process of diversification into another segment: shoes. This required a management team focused on integrated performance analysis, so, a manufacturing unit was in another region and it was necessary to analyze logistical, cost and business viability issues – which demonstrates the capability for basic innovation (Level 2).
In 2012, an investment group acquired 60% of Company Y. The operation had an investment of 240 million reals, the objective was to expand the network of own stores. The acquisition of the group resulted in capital investments in addition to the insertion of new management practices and production processes. The group implemented greater agility in management processes and different policies capable of creating better direction for Company Y. The complex adaptations necessary to create a new way of managing Company Y demonstrate the intermediate innovation capability (Level 3) and involved a lot of training and discussion meetings about the “best way to do things”.
Company Y was open to benchmarking, department directors carried out visits to suppliers. In addition, the company always being open to visits, such as technical visits from universities or even other companies that took their employees to visit some departments.
In 2015, the Group began selling through e-commerce. This activity is a new way of selling, however, to set up an e-commerce it is necessary to have a marketing strategy, delivery logistics, in addition to the process of introducing the brand to this type of market. These activities are characterized as basic innovation capability (Level 2).
In 2016, Company Y brought its e-commerce to its own headquarters, within the company's distribution center (DC). The company developed a business model that linked all of its sales channels to the virtual world, demonstrating its intermediate innovation capability (Level 3). The person who brought this change to the company was one of the majority owner's sons who acquired knowledge through research and previous experiences working in other companies.
Company Y has the practice of encouraging continuous improvement of management processes through lectures, group dynamics, games, seeking unity among employees.
At the end of the Consolidation Phase, the trajectory of technological capability accumulation of both Group X and Y in the “management” area achieved intermediate innovation technological capabilities (Level 3). In terms of learning modes, the firms mainly used DUI learning mode (i.e. hiring, technical visits, training, feedbacks, and consulting services). STI learning mode was identified just in terms of hiring expertise and research.
4.2 Trajectory of technological capability accumulation in the “Products” area and learning modes
4.2.1 Emergence phase
The “products” area, at the beginning of Company X’s activities, had only one product: dress pants, demonstrating incipient modeling techniques. With the partnership with another clothing company, Company X also began to offer men's shirts, this product being produced solely by the partner company. This demonstrates the production technological capability (Level 1) of Company X. In 1997, the Alfa brand was born, focusing on modern tailoring. This change in modeling required adaptations that demonstrate basic innovation capability (Level 2).
In mid-2006, Company X began developing fabrics for the Alfa brand. The exclusive fabrics were developed in partnership with supplier for use in the brand's collections, demonstrating intermediate innovation capability (Level 3). For this, the hiring of textile engineering expertise was necessary. According to the human resources manager, “the hiring of expertise is done strategically and judiciously. And after hiring, our department continues to develop their skills through integrations with the company's departments and training”.
In the case of Company Y, the beginning of activities is marked by the production of just one product: sweatshirts. Therefore, until 1995, the company's focus was on the commercialization of a single product of low technological complexity, featuring basic production capability (Level 1).
From 1996, Company Y was already able to replicate products of greater technological complexity such as t-shirts and pants, products considered “fashionable”. The expansion of products offered by the company falls under basic innovation capability (Level 2), because the company starts to make small adaptations to products influenced by the demands requested by the market and the needs of its target clients.
This occurred as a result of a movement by the owner who sought to pay attention to what was being used by people on the streets, or what was being sold in stores. This action involved a learning mechanism for external knowledge acquisition, through observation and analysis of competitors. The person responsible for this change observed what was “fashionable” and brought it to be produced within the company.
Between 1997 and 1998, Company Y created two new brands. Consequently, the patterns became more complex, utilizing different raw materials, along with the selection of prints and types of washes (in the case of denim pieces) demonstrating intermediate innovation capability (Level 3).
At this point, Company Y was seeking internationalization, and to develop the product mix of the new brands, it was necessary to expand trend and material research, increase visits to suppliers, and train stylists and designers, both those already part of the company and those hired later. So, Company Y began investing in hiring specialized professionals to develop new products and further enhance the value of the brand that was expanding (internationalization).
In 2003, there was the creation of the beachwear line, and in 2009, a children's line was launched. The expansion of products and brands demonstrated that the company was already positioning itself in the market through innovation in the products. Moreover, each of the brands targeted specific audiences, requiring more research in the development of products, which began to demonstrate intermediate technological innovation capability (Level 3).
At the end of the emergence phase, the trajectory of technological capability accumulation of Company X and Y in the “product” area evolved into intermediate innovation technological capabilities (Level 3).
4.2.2 Consolidation phase
In 2013, Company X started producing jeans items, bringing a new format of pieces. In addition to a new raw material, the objective became to deliver more casual pieces so that the brand's audience can use them at any time of the day. In 2017, the company began developing fabrics for another brand (Private Label) in partnership with a supplier. In 2019, the company brought products such as t-shirts, polo shirts and shorts made from mesh.
Furthermore, the Covid-19 pandemic caused changes in entire manufacturing structure and Company X began producing TNT coats, maintaining its intermediate innovation capability (Level 3).
During the Consolidation Phase, Company Y continued to launch new product lines such as intimates, fitness, and beachwear. In 2014, a brand targeting young consumers with high turnover collections and competitive prices was introduced. For example, the fitness line requires appropriate pieces for sports activities, necessitating advanced critical modeling research, as they must be ergonomic, comfortable, and made from quality fabrics suitable for the practice, in addition to investments in fabric technology.
Company Y also expanded its segments to the footwear sector. The shoes line was an important milestone, after all, this new style of product that the company offers demands a new development process and manufacturing requires specific labor and equipment. These activities demonstrate the maintenance of intermediate innovation capability (Level 3).
At the end of the Consolidation Phase, the trajectory of technological capability accumulation of Company X and Y in the “product” area keep in intermediate innovation technological capabilities (Level 3). In terms of learning modes, the firms also mainly used DUI learning mode (e.g., hiring, technical visits, training, feedbacks, and consulting services) and inside STI learning mode was identified hiring expertise and modeling research.
4.3 Trajectory of technological capability accumulation in the “Production Organization and Equipment” area and learning modes
4.3.1 Emergence phase
During the Emergence Phase, Company X began its activities making custom-made pants. In the 80s he acquired his first sewing machines and over the first 5 years the company hired around 20 employees. The manufacturing model was rudimentary with modeling, fitting, wrapping and cutting carried out manually, based on existing models and the operational processes were not formalized. These activities represent basic production capability (Level 1).
Company Y began its activities a decade after Company X and also presented basic production capability (Level 1) in the first periods of existence. For example, the modeling was carried out manually, based on existing models or created from empirical knowledge based on the experience of the collaborator who developed the modeling.
Over the years, both companies hired more employees and acquired more machinery. As a result, the companies began to standardize basic phases of a project and increased production. Software was implemented for operational processes. Cutting of pieces shifted from manual to laser cutting. In the case of Company X, this advancement occurred due to a merger with another small company in the industry, which allowed Company X to expand its production capacity and incorporate other equipment.
In the case of Company Y, the implementation of new software such as automatic nesting software involved participation in innovation fairs, making it possible to search for the most suitable technologies. After the implementation of the automatic nesting software, the team underwent training. According to the Nesting Supervisor, “initially, the use of the software was cumbersome, but as the employees became more qualified, it resulted in increased production, and consequently, it was well-received”.
The Nesting Supervisor mentions that initially, software training was not conducted consistently, and employees had difficulty using it. So, the nesting team created an informal collaborative team where employees.
Some collections of Company X were still developed in a disorganized manner, without programming, and lacked pilot pieces for sample display. Meanwhile, at Company Y, a dyeing department was created responsible for dyeing accessories such as buttons and zippers. The differential of dyeing accessories lies in the ability to create and develop new and exclusive colors for the piece. However, initially, the dyeing laboratory used simple equipment with low technology and easy handling, including stoves, pots, and spoons, meaning the technique is rudimentary and does not involve any specialized equipment for this process.
This demonstrates that, at the end of the Emergence Phase, the activities in the “production organization and equipment” area of both companies remained at production capability (Level 1) with few learning efforts characterized as DUI learning (e.g., training and hiring).
4.3.2 Consolidation phase
During the Consolidation Phase, specifically from 2016, Company X developed an engineering department, demonstrating a deepening of its innovation capability to basic (Level 2). Small improvements could be implemented in processes through the hiring of a production engineer (expertise).
Similarly, Company Y, starting in 2013, began the process of creating and implementing the quality department. In 2015, the quality department was fully equipped through the acquisition of equipment and hiring of employees. Computers, a washing machine, an industrial centrifuge, a circular fabric weight cutter, a scale, a lightbox, a table, a clothesline, among other necessary accessories for the laboratory's operation, were acquired. Consequently, several adaptations were made to the process (e.g., preventive management for equipment maintenance), characterizing basic innovation capability (Level 2). In the same year, Company Y also automated the entire production process. For example, according to Warehouse Auxiliary:
Before, we had a different structure that consisted of wooden shelves where materials were stored. We used to separate on large tables. Today we have a conveyor belt. It has a different storage and separation structure. We separate by product line inside the conveyor belt. It is a sequence that send the materials until the end of the process.
During the period between 2017 and 2019, Company X acquired various types of machinery, such as a T-shirt hemming machine, which brought a productivity gain with an average production of 3000 pieces/day. Additionally, an automatic conveyor belt ironing machine was purchased, which increase production from 400 pieces/day to 1200 pieces/day. Apart from these acquisitions, an employee of the company made an adaptation to the tables where the pieces are packaged, developing a suction device that is attached to these packaging tables to remove all the adhesive tapes from the packages (basic innovation technological capability - Level 2). Furthermore, in 2018, new machinery imported from Italy was acquired, placing Company X as one of the most modern manufacturing facilities in Brazil in its segment.
At Company Y, in the cutting department, there was an increase in production flow due to improvements in the execution time of activities and equipment efficiency. The machine upgrade and investments in training by the supplier increased production by 2%. In 2018, the cutting capacity averaged 7000 pieces/day, with a warehouse capacity to store 300 tons, an accessories warehouse with a capacity for approximately 300 million units, all within a manufacturing facility of approximately 26,000 m2. It is worth noting that Company Y sought to exchange experiences with other companies. The Quality Supervisor reports that she visited a supplier, and through this visit, she was able to expand her knowledge in the field and identify innovations.
In addition, Company Y encourages participation in innovation fairs, so all knowledge gained from these visits must be shared with other sector employees, or there are significant incentives for acquiring innovations from these visits. For example, a bias cutting machine and a semi-automatic spreading machine were two acquisitions made after being seen and suggested by employees who participated in fairs. Previously, the machine used had a system that presented several failures in both the product and the process, these failures impacted production time, quality, and waste. These changes demonstrate basic innovation capability (Level 2).
The Warehouse and Cutting Supervisor explained how this acquisition came about and the positive aspects after the purchase:
We work a lot with benchmarking; I visited two large companies and a fair, and from one of them, I brought this bias cutting machine. This machine was installed in 2019, and we achieved a fabric savings of approximately 40% and an efficiency gain of 20 to 25% in productivity. It's an investment that pays off in less than a year.
In 2020, Company X began operating with solar energy and within the free energy market. It continued to make various acquisitions, such as (i) a machine to roll the bias of T-shirt collars to improve productivity; (ii) a change from the SPA (Single Packet Authorization) model to the SDP (Software Defined Perimeter) model to improve piece tracking; (iii) acquisition of MTM (Method Time-Measurement) software to perform operational sequencing by micro-movements. Also, with the COVID-19 pandemic, there was a change in the factory structure to produce TNT lab coats, demonstrating the company's ability to quickly adapt the entire production process of the factory to meet the new demand, showcasing basic technological innovation capability (Level 2).
At the end of the Consolidation Phase, the activities in the “production organization and equipment” area of both companies deep to basic innovation capability (Level 2) with learning efforts characterized as DUI learning (e.g., training, participation in innovation fair and hiring).
5. Discussions of findings
Design the technological capability accumulation trajectory and the role of learning modes are necessary for understanding the innovative activities of low-tech industries, mainly in emerging markets – such as Brazil - where the clothing industry plays an important economic role. To improve the understanding of these issues, this research scrutinized essential proof and accumulated data from broad hands-on work, in two firms of the clothing industry in Brazil. The paper utilized an in-depth approach to analyze the technological capability accumulation, which captures degrees of capabilities (from basic production capability to advanced innovation capability), and goes beyond investigation based exclusively on R&D and patent measurements. And, identification of learning modes from two categorizations STI and DUI learning modes and the learning mechanisms related.
The findings (see Table 3) show that over time the firms deepened their technological capabilities, developing innovative activities and following a path-follower. Variations were evidenced along the technological capability trajectory in different technological areas.
The firms had very similar trajectories with minor variations regarding the speed of accumulation of technological capabilities. For example, during the Emergence Phase, Company X was faster in accumulating technological capabilities in “management” area. Company X reached intermediate innovation technological capability (Level 3) by the end of the Emergence Phase, while Company Y remained at basic innovation technological capability (Level 2).
At the end of the Consolidation Phase, in “product” and “management” areas, both firms progressed to intermediate innovation technological capability (Level 3). From this perspective, the research indicates that the industry, despite being characterized as low-tech, has not remained technologically stagnant, being able to develop innovative activities based on complex modifications of an incremental nature (PIANA; BRUSTOLIN, 2023). However, the area of “production organization and equipment” showed less advancement. At the end of the analysis period of over 30 years, firms achieved basic innovation technological capability (Level 2) in this area.
It is worth highlighting the importance of the “management” area, as it was through the deepening of technological capabilities in this area that the other two areas accumulated more complex technological capabilities. In other words, it is possible that without the maturation of management, the company as a whole (or at least the other areas under analysis) would not have advanced and generated the growth results found in the firms.
Furthermore, it is noted that efforts in DUI and especially STI learning modes became more evident from the Consolidation Phase, due to the maturation of the companies and transformations in the management area, as a result of the incorporation of new companies/investors. At this moment, companies stop merely copying the market and start creating new possibilities based on their own know-how, especially in the “product” area.
Regarding the role of learning modes in the trajectories of technological capability accumulation, from production capability to innovation capabilities, in the context of the local clothing industry, the results suggest that this process reflects the effectiveness with which firms implemented their learning modes. In the case of the “production organization and equipment” area that reached basic innovation technological capability (Level 2), the learning mechanisms used were classified as DUI learning mode. There was no combination with STI learning mode, which may suggest that the non-use or combination of DUI learning and STI learning shaped the lower reach of technological capabilities compared to other areas (management and product areas). This finding about “production organization and equipment” area reinforces Pavitt's (1984) taxonomy, whose classification of the clothing industry as “supplier dominated” remains current. In other words, corroborating with Pavitt, Robson and Townsend (1989), most production organization and equipment innovations continue to originate from equipment and material suppliers, demonstrating a high dependence on externally developed technologies.
In the “management” and “product” areas, which achieved an intermediate innovation technological capability (Level 3), it was observed that firms combine, albeit still in an incipient manner, DUI and STI learning modes (with less complex STI learning modes such as hiring expertise and research).
Therefore, corroborating the findings of Jensen et al. (2007) and, Figueiredo, Larsen and Hansen (2020), it seems that the combined and complementary use of various DUI/STI learning mechanisms over time supports the process of building technological capability and, ultimately, the implementation of innovation activities with increased value and novelty. Therefore, the limited use of STI learning mode appears to have been one of the “barriers” hampering the firms from deepening their technological capabilities to higher levels of complexity and technological novelty.
5.1 Contributions to management practice and to public policies
The results provide insights for managers seeking to improve the innovative performance of firms in the clothing industry within the Brazilian context. The research emphasizes the importance of learning modes, through the complementary use of mechanisms based on STI and DUI learning modes, to explore different forms of knowledge and develop the technological capabilities necessary to implement required innovation activities. In other words, especially in the context of the clothing industry (which is classified as a low-tech industry), the findings help to avoid biased approaches exaggerating the role of science-based innovation.
Additionally, the results of this research demonstrate that technological capabilities do not emerge and develop in a vacuum; they require costly investments and daily efforts to achieve the implementation of technological activities with increased value and novelty. These efforts involve deliberate actions of incorporation, management, and effective combination of learning mechanisms involved in STI and DUI learning modes.
The research recommends that public policies aimed at the clothing industry and innovation initiatives by businesses should be sensitive to the technological capabilities accumulated by firms and take into account the areas of greatest need. This aligns with Pavitt's (1984) emphasis on the importance of sensitivity to sectoral specificities.
Furthermore, the variations found in the trajectories of the different areas demonstrate the asymmetric coexistence of technologies within the clothing sector in a process that extends over a considerable period of time. This finding corroborates Albuquerque (2023) who draws attention to the complex phenomenon of overlapping technologies in peripheries. This overlapping of technologies creates challenges for the design of industrial and technological policies. The main challenge lies in considering the absorptive capacity, both existing and potential (ALBUQUERQUE, 2023), of each sector, that is, its capability to incorporate, manage and combine learning mechanisms involved in STI and DUI learning modes.
5.2 Limitations and further research
The study has several limitations. For example, the research did not examine factors beyond learning modes and their impacts on the trajectory of technological capability accumulation. Future studies could (i) explore the role of firm leadership behavior and government policies in the trajectory of technological capability accumulation and (ii) review the histories of companies by including elements that address the overlapping technological trajectories observed in peripheral countries. Additional research could also compare clothing companies in different emerging markets in terms of the process of building trajectories of technological capability accumulation.
Data Availability Statement
The data that support the findings of this study are not publicly available due to confidentiality agreements with the participating organizations but are available from the corresponding author upon reasonable request and with permission of the data owners.
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Source of funding:
The authors declare that there is no funding.
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Declaration of Editor Responsible for the Evaluation Process
The editors Wilson Suzigan (Editor-in-Chief) and Renato de Castro Garcia (Deputy Editor) were responsible for the entire process of evaluation up to the approval of this article.
Publication Dates
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Publication in this collection
21 Nov 2025 -
Date of issue
2025
History
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Received
02 May 2024 -
Reviewed
25 June 2025 -
Accepted
03 July 2025
