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Book part
Publication date: 7 October 2015

Md Nuruzzaman

The objective of this study is to investigate how country risk, different political actions from the government and bureaucratic behavior influence the activities in industry

Abstract

The objective of this study is to investigate how country risk, different political actions from the government and bureaucratic behavior influence the activities in industry supply chains (SCs) in emerging markets. The main objective of this study is to investigate the influence of these external stakeholders’ elements to the demand-side and supply-side drivers and barriers for improving competitiveness of Ready-Made Garment (RMG) industry in the way of analyzing supply chain. Considering the phenomenon of recent change in the RMG business environment and the competitiveness issues this study uses the principles of stakeholder and resource dependence theory and aims to find out some factors which influence to make an efficient supply chain for improving competitiveness. The RMG industry of Bangladesh is the case application of this study. Following a positivist paradigm, this study adopts a two phase sequential mixed-method research design consisting of qualitative and quantitative approaches. A tentative research model is developed first based on extensive literature review. Qualitative field study is then carried out to fine tune the initial research model. Findings from the qualitative method are also used to develop measures and instruments for the next phase of quantitative method. A survey is carried out with sample of top and middle level executives of different garment companies of Dhaka city in Bangladesh and the collected quantitative data are analyzed by partial least square-based structural equation modeling. The findings support eight hypotheses. From the analysis the external stakeholders’ elements like bureaucratic behavior and country risk have significant influence to the barriers. From the internal stakeholders’ point of view the manufacturers’ and buyers’ drivers have significant influence on the competitiveness. Therefore, stakeholders need to take proper action to reduce the barriers and increase the drivers, as the drivers have positive influence to improve competitiveness.

This study has both theoretical and practical contributions. This study represents an important contribution to the theory by integrating two theoretical perceptions to identify factors of the RMG industry’s SC that affect the competitiveness of the RMG industry. This research study contributes to the understanding of both external and internal stakeholders of national and international perspectives in the RMG (textile and clothing) business. It combines the insights of stakeholder and resource dependence theories along with the concept of the SC in improving effectiveness. In a practical sense, this study certainly contributes to the Bangladeshi RMG industry. In accordance with the desire of the RMG manufacturers, the research has shown that some influential constructs of the RMG industry’s SC affect the competitiveness of the RMG industry. The outcome of the study is useful for various stakeholders of the Bangladeshi RMG industry sector ranging from the government to various private organizations. The applications of this study are extendable through further adaptation in other industries and various geographic contexts.

Details

Sustaining Competitive Advantage Via Business Intelligence, Knowledge Management, and System Dynamics
Type: Book
ISBN: 978-1-78441-764-2

Keywords

Article
Publication date: 11 March 2014

Meenakshi Ramesh Kurpad

The primary aim of this paper is to evaluate the challenges before the growth of the ready-made garment (RMG) industry in Bangladesh, the economy's backbone, and suggest…

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Abstract

Purpose

The primary aim of this paper is to evaluate the challenges before the growth of the ready-made garment (RMG) industry in Bangladesh, the economy's backbone, and suggest appropriate reform.

Design/methodology/approach

The paper begins by tracing the growth and evolution of the RMG industry before identifying the challenges. It then proceeds to suggest appropriate reform for the same.

Findings

The paper argues for more effective models of collective bargaining and unionism as a solution to the problems that the industry faces.

Originality/value

The paper is the first of its kind in the sense that it is a comprehensive account of the challenges to the RMG industry in Bangladesh.

Details

Journal of International Trade Law and Policy, vol. 13 no. 1
Type: Research Article
ISSN: 1477-0024

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Article
Publication date: 10 December 2020

Ikramul Hasan, M. Nazmul Islam and Sariat Rafa Khan

This study illustrates the effects of the motivating factors (e.g. learning facilities, employees' compensation and working environment) on organizational attractiveness.

Abstract

Purpose

This study illustrates the effects of the motivating factors (e.g. learning facilities, employees' compensation and working environment) on organizational attractiveness.

Design/methodology/approach

This is a quantitative study. This study investigates the hypotheses based on the 160 employee responses from the different garments operating in Bangladesh's ready-made garment (RMGs) industry.

Findings

Using the structural equation modeling in Bangladesh's RMG industry, this paper argues that the working environment has a significant effect on organizational attractiveness in Bangladesh's RMG industry. This research study underlines that the working environment and employee compensations serve better than the employees learning facilities to grow employees RMG attraction.

Research limitations/implications

The findings will help practitioners of the garment manufacturers to showcase the motivating factors for the employees in growing attraction for the industry. However, the research is limited to the garment industry in Dhaka, Bangladesh. Moreover, similar research can be extended further in other countries with bigger samples to draw a general conclusion for the RMGs' operating in Asia.

Practical implications

This paper brings a plea for the practitioners through this research's outcomes and provides useful indications of how organizations can motivate their employees to ensure organizational attractiveness for their garment industry.

Originality/value

The paper also contributes to the body of the literature relating to attractiveness in Bangladesh's RMG sector. Employees' participation in this research also confirms the unique context of the sector.

Details

International Journal of Emerging Markets, vol. 17 no. 5
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 5 May 2015

Mohammed Ziaul Haque and Fara Azmat

This paper aims to examine the state of corporate social responsibility (CSR) in labour-intensive industries in developing countries in the context of economic globalization…

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Abstract

Purpose

This paper aims to examine the state of corporate social responsibility (CSR) in labour-intensive industries in developing countries in the context of economic globalization. Using the ready-made garments’ (RMG) industry in Bangladesh as a case study, challenges and key issues relating to CSR are highlighted.

Design/methodology/approach

The paper draws from the review of existing literature, and the content analysis of two leading newspapers in Bangladesh for a period of one year (July 2012-June 2013) to identify the key and contemporary issues related to CSR in the RMG industry.

Findings

Findings identify the contemporary issues of concerns associated with CSR in the RMG industry, relating them to the debate on the applicability of Carroll’s CSR pyramid to developing countries. The findings suggest that non-compliance of CSR in labour-intensive industries is a function of the nature of economic globalization. The need for a stakeholder approach towards CSR for the profitability and sustainability of this industry is also highlighted.

Practical implications

This paper makes contributions to two different but important interrelated discourses on CSR and economic globalization. It also provides insights into the complexity involved in CSR in labour-based export industries in developing countries and acts as a springboard for further research.

Originality/value

The paper is the first to look at all major issues of concern regarding CSR in the RMG industry in Bangladesh. As Bangladesh is an exemplar of developing countries and RMG is a typical starter industry, the findings are generalizable to similar industries in other developing countries.

Details

Sustainability Accounting, Management and Policy Journal, vol. 6 no. 2
Type: Research Article
ISSN: 2040-8021

Keywords

Article
Publication date: 20 July 2022

Md. Rahat Khan and Hussain Gulzar Rammal

This study investigates the effectiveness of trade unions in preserving and promoting the rights of the worker, and being their voice in ensuring safe working conditions as part…

Abstract

Purpose

This study investigates the effectiveness of trade unions in preserving and promoting the rights of the worker, and being their voice in ensuring safe working conditions as part of the firms’ CSR activities.

Design/methodology/approach

Data were collected from employees, managers, and owners of ready-made garments firms in Bangladesh. An open-ended survey instrument was used and distributed widely. Analysis of the 200 responses was undertaken using the qualitative narrative technique.

Findings

The findings show that, unlike traditional labor-management relations, in Bangladesh managers tend to have a more favorable attitude towards unions than employees do. The strong political links between the factory owners and the unions’ leadership raise questions about whose interest the unions represent.

Practical implications

The authors highlight how adopting a CSR agenda can help unions make better representations on behalf of their members. This, in turn, can enhance the workforce’s efficiency and help strengthen the sector to develop processes to help face disruptions like those experienced during the COVID-19 pandemic.

Originality/value

The study is unique in addressing the role of unions in promoting CSR activities in emerging economies, where the formal institutional application remains limited. The study’s findings can help explain some of the sector’s challenges.

Details

Management Decision, vol. 60 no. 10
Type: Research Article
ISSN: 0025-1747

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Open Access
Article
Publication date: 31 July 2023

Sheak Salman, Sadia Hasanat, Rafat Rahman and Mahjabin Moon

Since Industry 4.0 (I4.0) is a new idea in Bangladesh, this study supports I4.0 adoption. Companies struggle to implement I4.0 and fully profit from the fourth industrial…

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Abstract

Purpose

Since Industry 4.0 (I4.0) is a new idea in Bangladesh, this study supports I4.0 adoption. Companies struggle to implement I4.0 and fully profit from the fourth industrial revolution’s digital transformation due to its novelty. Although barriers to I4.0 adoption are thoroughly studied, the literature has hardly examined the many aspects that are crucial for I4.0 adoption in Bangladesh’s Ready-Made Garment (RMG) industry. So, the purpose of this study is to investigate the barriers of adopting I4.0 in relation to Bangladesh’s RMG industries to enhance the adoption of I4.0 by developing a framework. Ultimately, the goal of this research is to improve the adoption of I4.0 in Bangladesh.

Design/methodology/approach

Through a comprehensive analysis of the existing research, this paper aims to reveal the barriers that must be overcome for I4.0 to be adopted. For evaluating those barriers, a decision analysis framework based on the combination of Delphi technique and Decision-Making Trial and Evaluation Laboratory (DEMATEL) method has been developed. The use of DEMATEL has led to a ranking model of those barriers and a map of how the barriers are connected to each other.

Findings

The findings reveal that “I4.0 training”, “Lack of Motivation” and “Resistance to Change” are the most significant barriers for adopting Industry 4.0 in RMG sector of Bangladesh based on their prominence scores.

Research limitations/implications

These findings will help the people who make decisions in the RMG industry of Bangladesh, such as company owners, managers and the executive body, come up with a plan for putting I4.0 practices into place successfully. The decision-making framework developed in this research can be utilized by the RMG industry of Bangladesh and other similar industries in developing countries to figure out how important each barrier is for them and how to get rid of them in order of importance.

Originality/value

As far as the authors are aware, there has not been a comprehensive study of the barriers inhibiting the adoption of I4.0 within the scope of Bangladeshi RMG industry. This work is the first to uncover these barriers and analyze them using the combination of Delphi technique and DEMATEL.

Details

International Journal of Industrial Engineering and Operations Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2690-6090

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Article
Publication date: 28 April 2014

Fahian Anisul Huq, Mark Stevenson and Marta Zorzini

The purpose of this paper is to investigate why developing country suppliers are adopting socially sustainable practices and how the implementation process is both impeded and…

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Abstract

Purpose

The purpose of this paper is to investigate why developing country suppliers are adopting socially sustainable practices and how the implementation process is both impeded and enabled.

Design/methodology/approach

A multi-case study approach is adopted based on four ready made garment (RMG) industry suppliers in Bangladesh and the Bangladeshi buying houses of two large UK retailers. The primary mode of data collection is exploratory face-to-face interviews with 14 senior representatives. Findings are later interpreted using the transaction cost economics (TCE) theory lens.

Findings

One factor motivating implementation is labour retention – a skilled labour shortage means employees will migrate to other factories if suppliers do not improve certain social standards. Barriers to implementation include a misalignment between the requirements of western codes of conduct and the cultural and socio-economic context in Bangladesh. Enablers include a shift from auditing and monitoring to more open dialogue and trust between buyers and suppliers. The paper also reveals evidence of mock compliance, e.g. suppliers keeping two sets of timesheets, and of the complexities of social sustainability. For example, while some initiatives are unanimously positive, removing child labour from RMG industry suppliers has simply diverted it to other, less regulated and more hazardous industries such as construction.

Research limitations/implications

An early, exploratory contribution is provided. The work could be extended, e.g. to other stakeholders such as third-party auditors and Non-Governmental Organisations (NGOs).

Practical implications

Being aware of the motivations, barriers and enablers will help multi-national corporations (MNCs) promote good practice and anticipate the challenges they are likely to face in improving the social sustainability of their supply chains. Use of TCE leads to suggesting MNCs need to move beyond immediate suppliers and incorporate tier-two suppliers in implementation efforts.

Social implications

Social sustainability improvements should benefit vulnerable workers, help suppliers develop longer term relationships with MNCs, and contribute to economic growth.

Originality/value

Most prior studies have been in the context of developed countries and focused on the perspective of the buying firm only.

Details

International Journal of Operations & Production Management, vol. 34 no. 5
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 7 November 2019

Rezaul Shumon, Zaheed Halim, Shams Rahman and Kamrul Ahsan

Stakeholders such as customers, governments and environmental organisations are more concerned than ever about the impact of supply chain practices on the environment, leading…

Abstract

Purpose

Stakeholders such as customers, governments and environmental organisations are more concerned than ever about the impact of supply chain practices on the environment, leading firms to introduce environmental requirements into their supply contracts. While the extant literature on supply chains acknowledges this trend, it fails to inform comprehensively on the concept of “stringent environmental requirement” and its consequences. The purpose of this paper is to investigate this concept and explore how such requirements may translate into supplier environmental performance.

Design/methodology/approach

Qualitative methodology was adopted by the study and data were collected through conducting eight case studies in the Bangladesh ready-made garment (RMG) industry.

Findings

A number of factors were found to be influencing suppliers’ perception of stringency, such as uncertainty relating to the newness and deadline of buyers’ environmental requirements, the complexity of implementing the requirements, and the use of buyer-specific frameworks. The research also shows that suppliers’ efforts in building environmental capability play a vital role in dealing with stringent environmental requirements.

Research limitations/implications

The case studies are limited to the Bangladesh RMG industry. Given that environmental regulations vary across different countries and industries, the data may not reflect all the possible variations in stringent environmental requirements.

Practical implications

The new insight proposed by this research can guide firms to further understand how supplier environmental performance and the sustainability of their supply chain can be achieved. The research provides broad insight into how suppliers can address stringent environmental requirements and improve their environmental performance.

Originality/value

This research establishes evidence for the relatively new phenomenon of “stringent environmental requirements”, and develops a theoretical framework to demonstrate the relationships among the critical determinants relevant to this phenomenon.

Details

International Journal of Physical Distribution & Logistics Management, vol. 49 no. 9
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 19 May 2022

Md. Rahat Khan and Sanjoy Kumar Roy

The International Labour Organization’s (ILO) sustainable compact is evident for many labor-intensive industries in emerging economies. This study aims to develop a sustainable…

Abstract

Purpose

The International Labour Organization’s (ILO) sustainable compact is evident for many labor-intensive industries in emerging economies. This study aims to develop a sustainable human resource (HR) practice model for a labor-intensive industry from the evidence of the Bangladeshi ready-made garments (RMG) sector.

Design/methodology/approach

The study tests the factors identified from the literature for model validation. A total of 22 HR function items were used in a survey of 800 randomly selected respondents from the RMG sector in Bangladesh. The factor analysis (both exploratory and confirmatory) techniques were applied to explore and validate the model.

Findings

The study findings reveal that the factory management and policymakers should focus on sustainable HR practices for the betterment of a labor-intensive industry. In detail, the staffing function involves strategic HR planning, recruitment and selection and perfect employee placement; training and development functions entail proper organizational orientation, various training and development programs and employees’ career management and growth; the motivation function necessitates job design, fairness in the appraisal, practicing good organizational citizenship behavior with sound rewarding system and compensation packages; and finally, the maintenance function entails healthy and safe working environment, good communication and relationship management.

Originality/value

The study is original in developing a sustainable HR practice model with the alignment of ILO’s three inter-linked sustainability compact for a labor-intensive industry from an emerging economy perspective. The study’s outcomes will be a torchbearer for any labor-intensive industry’s sustainable HR practice from an emerging economy across the globe.

Details

Review of International Business and Strategy, vol. 33 no. 2
Type: Research Article
ISSN: 2059-6014

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Article
Publication date: 29 March 2024

Chowdhury Jony Moin, Mohammad Iqbal, A.B.M. Abdul Malek, Mohammad Muhshin Aziz Khan and Rezwanul Haque

This research aims to investigate how manufacturing flexibility can address the challenges of an ever-changing and unpredictable business environment in Bangladesh’s…

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Abstract

Purpose

This research aims to investigate how manufacturing flexibility can address the challenges of an ever-changing and unpredictable business environment in Bangladesh’s labor-intensive ready-made garment (RMG) industry, which is underserved and situated in a developing country.

Design/methodology/approach

Using Partial Least Square Structural Equation Modeling, this study empirically evaluated the relationships between manufacturing flexibility, environmental uncertainty and firm performance. The analysis utilized 320 survey responses from potential RMG experts, representing 95 organizations.

Findings

The study achieved a decision-making model for implementing manufacturing flexibility in the RMG industry of Bangladesh with acceptable model fit criterion. The research pinpointed that workforce flexibility plays the maximum mediating among different types of manufacturing in coping with demand and supply uncertainty in the RMG sector.

Research limitations/implications

The study made valuable contributions to theoretical and practical knowledge in the context of manufacturing flexibility in Bangladesh’s RMG and other underserved labor-intensive sectors in developing economies. It suggests that managers should shift from defensive and risky business strategies to more aggressive and proactive approaches by utilizing workforce flexibility resources adaptively to enhance manufacturing capabilities and align with dynamic market demand. Additionally, the study offers recommendations for future research to build upon its findings.

Originality/value

This study is unique in its approach because it presents a decision model for implementing manufacturing flexibility in a labor-intensive industry in a developing economy, specifically the RMG industry in Bangladesh, whereas previous research has primarily focused on high-tech industries in developed economies.

Details

Journal of Manufacturing Technology Management, vol. 35 no. 3
Type: Research Article
ISSN: 1741-038X

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