Patterns of Interaction Between Bargaining, Global Value Chain, and Export Success in the Carpet Industry

Abstract

This study examines the patterns of interaction between bargaining, the global value chain, and export success in the carpet industry. In a competitive global environment, manufacturers' ability to achieve a favorable position within the global value chain and leverage bargaining skills can directly impact their export success. The research method is designed as a mixed-methods approach (qualitative and quantitative), with data collected through interviews with experts and document analysis. The results indicate that the reciprocal relationships between bargaining factors and position within the global value chain are among the most significant predictors of success in carpet exports. Furthermore, effective management of the global value chain and the ability to capitalize on market opportunities can enhance the competitive position of manufacturers. The findings can assist policymakers and manufacturers in formulating optimal strategies to increase market share in exports. In this study, bargaining is explored as a tool for managing business relationships in the global value chain, with its impact on securing better contracts, reducing costs, and improving product quality analyzed. Additionally, positioning within the global value chain is presented as a key indicator for determining producers' share in value-added and creating a sustainable competitive advantage. In the qualitative section, the role of cultural, economic, and technological factors in bargaining interactions was explored through semi-structured interviews with carpet industry experts. In the quantitative section, data were analyzed using structural equation modeling, and the impact of independent variables such as bargaining skills and position within the global value chain on export success was tested. The analysis results show that the use of innovative bargaining strategies, such as flexibility in negotiations and utilizing market data, has a positive and significant impact on increasing export market share. This study suggests that carpet industry producers and policymakers focus on developing bargaining skills, enhancing international collaborations, and leveraging new technologies to improve their position within the global value chain and strengthen export capabilities.