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FACULTY OF EDUCATION AND BUSINESS STUDIES

Department of Business and Economics Studies

READY-MADE GARMENTS INDUSTRY OF BANGLADESH:

FACTORS INFLUENCING SUSTAINABLE DEVELOPMENT

Md Noman Siddiky

January 2021

Student thesis, Master degree (one year), 15 HE Business Administration

Master Programme in Business Administration (MBA): Business Management Master Thesis in Business Administration 15 Credits

Supervisor: Maria Fregidou-Malama Examiner: Ehsanul Huda Chowdhury

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I

Abstract

Bangladesh RMG (Ready-made garments) industry has grown rapidly and contributing to country’s economy successfully for last three decades. In 2018-2019 this giant sector contributed 84% of the total foreign exchange earnings of the country. This is the unique sector of the country in terms of significant export growth rate and stands as the second- largest RMG exporter with 6.8% market share according to world trade organization 2019. Though the growth rate is increasing annually but it seems the growth of the industry yet to reach highest potentials.

Aim: Aim of this study is to understand the factors influencing the sustainable development of Bangladesh ready-made garments industry.

Method: The study has been conducted applying the qualitative method. Primary data is collected through interviewing suppliers of the ready-made garments of Bangladesh.

Secondary data sources were governmental and private organization’s websites. The data were analyzed by comparing it with existing literature.

Results: The result shows factors such as Compliance, Political unrest, Technology, Research & Development, Diversifications, Competition, Marketing strategy influencing sustainable development of the ready-made garments industry of Bangladesh.

Contributions of the study: This study investigates the factors hindering sustainable development of the Bangladesh read-made garments sector which has been discussed in previous literature in a segregated way. In this study factors that cause unstable export growth and hinder sustainable development have been addressed in the same frame.

Furthermore, stakeholders of the company (Customer, Suppliers, Buyers, Investors, and Government) will be benefited to know the results of this study, as sustainable development is the result of unified efforts.

Suggestions for further research: Future researchers can investigate the factors elaborately both from suppliers and buyers’ point of view. Because of limitations, author could not reach more suppliers and buyers. The buyer’s prospect is also important to judge the factors influencing growth instability and sustainable development.

Keywords: Growth instability, RMG of Bangladesh, Sustainability, Sustainable development, Research & Development, Compliance.

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II

Acknowledgement

First of all, I would like to express my gratitude to my supervisor Maria Fregidou-Malama and examiner Ehsanul Huda Chowdhury for their valuable supervision and efforts on my thesis which I needed the most. I also appreciate those participants who took part into my study and inquiry. Their immense knowledge and experiences in the field of ready-made garments industry of Bangladesh helped me to conduct this study. Finally, I would like to thank my fellow students who have helped me in many ways throughout the study period.

Warm regards Md Noman Siddiky January 2021

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III

Table of Contents

1. Introduction ... 1

1.2 Background ... 1

1.3 Problem identification & Research gap ... 3

1.4 Aim of the study and research question... 4

1.5 Delimitations ... 4

1. 6 Dispositions of the study ... 4

2. Literature review... 6

2.1 Overview of export growth of Bangladesh RMG sector ... 6

2.2 Sustainable development ... 10

2.2.1 Compliance ... 11

2.2.2 Political Unrest ... 13

2.2.3 Technology ... 15

2.2.4 Research & Development ... 16

2.2.5 Diversification ... 17

2.2.6 Competition ... 17

2.2.7 Marketing strategy ... 18

2.3 Theoretical Framework... 18

3. Methodology ... 20

3.1 Philosophical stance ... 20

3.1.1 Ontology ... 20

3.1.2 Epistemology ... 20

3.2 Research Strategy ... 21

3.2.1 Qualitative Approach ... 21

3.2.2 Inductive Approach ... 21

3.2.3 Literature study ... 21

3.3 Data Collection ... 22

3.3.1 Primary data collection ... 22

3.3.2 Secondary data ... 22

3.4 Interview Process ... 23

3.4.1 Selection of Participants ... 24

3.5 Operationalization ... 24

3.6 Validity and Reliability ... 25

3.7 Analysis ... 26

3.8 Research Ethics... 26

4. Empirical Study ... 27

4.1 An overview of the ready-made garments industry in Bangladesh ... 27

4.2 Summary of the organizations studied ... 27

4.2.1 Supplier A ... 28

4.2.2 Supplier B ... 28

4.2.3 Supplier C ... 28

4.2.4 Supplier D ... 28

4.2.5 Supplier E ... 29

4.2.6 Supplier F ... 29

4.2.7 Supplier G ... 29

4.2.8 Supplier H ... 29

4.3 Finding ... 29

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IV

4.3.1 Compliance issue has been questioned by foreign buyers ... 30

4.3.2 Political unrest makes the growth rate unstable ... 30

4.3.3 Technology is the most important instrument to achieve a competitive market ... 31

4.3.4 Research and development department should be improved ... 32

4.3.5 Product and market diversification are necessary to continue the pace of development ... 33

4.3.6 Competition is getting stronger over time ... 33

4.3.7 Lack of strategic marketing make the market unstable and the future uncertain ... 34

4.4 Summary of the Findings ... 35

4.5 Suggestions from the participants ... 35

5. Analysis ... 37

5.1 Factors influencing sustainable development ... 37

5.1.1 Compliance ... 37

5.1.2 Political Unrest ... 38

5.1.3 Technology ... 39

5.1.4 Research and Development ... 40

5.1.5 Diversification ... 40

5.1.6 Competition ... 41

5.1.7 Marketing strategy ... 42

5.2 Interpretation of Theoretical Framework ... 42

6. Conclusion ... 44

6.1 Answer to the research question ... 44

6.2 Contributions of the research ... 45

6.2.1 Theoretical contributions ... 45

6.2.2 Managerial Implications ... 46

6.4 Reflection on the study, limitations and suggestions for future research ... 47

References ... 48

Appendices ... 55

Appendix A ... 55

Appendix B: ... 56

Appendix C: An exampke of Answers to Interview questions ... 58

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V

List of Figures

Figure 1. 1 Bangladesh ready-made garments share in the European Union (Source EPB, 2019) 7

Figure 1. 2 Bangladesh export by major product (Source EPB 2019) ... 7

Figure 1. 3 Export growth of woven garments during 2007-2008 to 2017-2018 (own) ... 9

Figure 1. 4 Export growth of knitwear garments during 2007-2008 FY to 2017-2018 FY (own) .. 9

Figure 1. 5 Bangladesh RMG export in USA (EPB 2019, BGMEA 2019)... 11

Figure 2. 1Factors influencing sustainable development of Bangladesh ready-made garments industry (Own)... 19

Figure 2. 2 Flowchart of methodology (Own) ... 22

Figure 5. 1 Factor influencing sustainable development of RMG sector ... 43

List of Tables

Table 2. 1 Showing decline of the Bangladesh ready-made garment factories annually (EPB, BGMEA) ... 10

Table 3. 1 Information of respondents and interviews conducted. ... 24

Table 3. 2 Operationalization of interview questions link with theme and theories. ... 25

Table 4. 1 Summary of the finding ... 35

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1

1. Introduction

In the introduction part, the background of the study is reflected with an overview of the research gap. The research question is formulated following aim and the chapter terminates with clarifying of disposition of every chapter towards ultimate results

. 1.2 Background

Bangladesh is an emerging country that has been standing on flourishing status in the last three decades with its successful affiliation of the most prominent garments sector throughout the global market. After becoming an independent country in 1971 jute and jute goods products were the driving forces of the economy as main foreign exchange- earners but this most prominent industry lost position because of immense troubles (Berg et al., 2011).

The ready-made garments sector holds the steering of the country’s economic wheel after the tragic fall of the jute and jute goods market in foreign exchange earnings (Barai, 2020;

Hasan et al., 2016). Since the journey of the ready-made garments industry, it has been strengthening the economy of Bangladesh. Through successive consecutive initiatives by the government, shifting from import-substituting industrialization (ISI) to the export- oriented industrialization policy started establishing the garments industry at the end of the 1970s (Barai, 2020).

Due to the advancement of globalization Bangladesh garments industry got the opportunity to explore the international market and as a result, this sector achieved success and now looking for a sustainable business environment. (Al-Zaabi et. al., 2013;

Jaeger and Adair, 2016; Lee, 2012; Shen et. al., 2013; Weckenmann et. al., 2015).

Very first foreign earning through this sector was US$69 thousand made by Reaz garments exported the consignment to the USA in 1978 (Bhattacharya and Rahman et al.

2002) and later in 2002 after about two decades it has gone up to US$4.5 million.

Subsequently, during the 1980s the government allowed and issued the license for importing garments machinery without duty (Barai, 2020). Introducing an incentive scheme against the export must positive initiative (Barai, 2020). Bangladesh occupied its position in number two in terms of the total export of ready-made garments in global markets (Mahmud, 2012). RMG industry possesses the highest position as a source of export earnings with 84.5% of its totals (Barai, 2020).

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2 Research shows almost four million people depend on this giant sector (Hasan and Mahmud,2017), where 60% are female workers (Barai, 2020). Available human resources with low wages were the notable reason behind this enrichment of this sector. Moreover, workforce & raw materials availability, successful affiliation with international trading organizations, international buying agents, buying houses as intermediaries in the home country were reasons for achieving today’s glorious status of the garments sector (Farhana and Syduzzaman et al., 2015). This sector is not only contributing through remittance earning but also creating vast numbers of employments mostly for underprivileged & illiterate women (Rakib and Adnan, 2015).

As Bangladesh can provide quality apparel with lower competitive prices day by day export is increasing (Mohibullah et al., 2016). Though the growth rate is increased from 2010 to 2013 after that, the rate is fluctuating within a limited area (Ahamed, 2014). Some factors hinder the growth in the ideal model. Political unrest and unsustainable development are remarkable of all (Hasan and Parven et al., 2018).

It is projected by Bangladesh Garments manufacturing and export association (BGMEA) to earn 50 billion USD from the RMG sector through exporting by 2021 (Mohibullah and Jannat et al, 2018). As per the growth of annual improvement, it can be said target will be achieved but it is uncertain as remarkable factors are hindering export growth &

development. Factors of instability challenge the prospect or target of this sector.

Bangladesh’s competitive advantage is the low labour cost of production as the industry is labour-intensive but the poor governance, corruption, and lack of implementing the technological advancement tools in the production hinder to achieve the highest potentials (Carlson and Bitsch, 2018). It is high time to give head in those challenges and resolve to assure rapid and stable growth of the garments industry of Bangladesh (Mottaleb &

Sonobe, 2011; Hasan et al., 2018).

RMG has achieved remarkable results since its inception; but this sector has been facing challenges towards gaining the full level of potentials (Haider, 2007). Some risk factors are pulling back the pace of this industry from different aspects (Islam and Rakib et al., 2016). Bangladesh's ready-made garments sector is going through ups and downs in the last decade because of tragic incidents that happened and makes the prospects of this sector uncertain (Ansary and Barua, 2015).

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3 Sustainable development has become a challenging issue for Bangladesh's ready-made garments industry as buyers from EU region aware of it (Islam et al., 2019).

Due to some of the specific challenges Bangladesh's ready-made garments industry seems going to lose its trend in the global market especially in the USA, EU and semi-developed country (Razzaue et al.2007; Adnan et al., 2015).

As reported by Bangladesh garments manufacturers Exporters Association (EPB &

BGMEA, 2018) the number of Garment factories were increased very fast consecutively from 2000 but recently decreasing annually because of different crisis (Table 01).

Most of the garment factories are not conforming to the labor law and conventions implied by the International labour Organization (Islam and Ahmed, 2010). Lack of product diversity, new market seeking, brand development, international marketing strategy, and technological advancement is considerable factors (Robbani, 2000).

Business ethics, corruption, sustainable customer relationship, political instability, technological advancement in CRM business tools & international business communications, poor construction equipment, business communication, and bilateral relationship should be considered to address prospects of this industry. After all, there are many things to be addressed as prospects of the ready-made garments sector. After the unexpected tragic incident of Rana plaza & Tazrin Garments, workplace safety issues become mostly considerable (Manik et al., 2013). Along with government initiatives, Bangladesh accord on fire and building safety and Alliance for Bangladesh workers safety took initiatives jointly to make sure the safety of the workers of RMG units all over Bangladesh (Rakib and Adnan et al., 2015).

1.3 Problem identification & Research gap

Previous research field (Haider, 2007, Talapatra and Uddin, 2018, Rakib and Adnan, 2015, Rahman and Siddiqui, 2015, Ahmed et al., 2014) argued about the RMG sector of Bangladesh in a distinct way like Inception, Flourishing, Obstacles, Challenges, Growth rate, and prospect in the international market of this most prominent industry. (Islam et a., 2019, Ahmed., 2009, Kumar et al., 2015, Salam, 2018) argued sustainability in the corporate environment, buyer and supplier’s sustainable relationship and importance of employee’s role to achieve sustainable development.

This study intends to discuss all relevant issues in a parallel manner and shows the factors of sudden instability and how sustainable development is influenced. The development

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4 of an industry is not the result of endeavour by any specific group but the combined effort of a diverse community. At the same time, there are collective attempts behind the unsustainable development in the business environment. Some factors that cause the unstable condition and hinder sustainable development of the Bangladesh RMG sector yet to be discussed consecutively in the same platform. Some factors like Research and development (Islam, Rakib et al., 2016), Product and market diversification, technology (Haider, 2007) have been discussed in literature as the reason for growth instability and unsustainable development of the RMG industry in Bangladesh. Different factors that influencing sustainable development need to be discussed in one frame so that ready- made garments manufacturers and suppliers can have an idea to deal with segregated factors in an integrated way.

1.4 Aim of the study and research question

The aim of the study is to investigate which factors influence the sustainable development of the ready-made garments industry of Bangladesh. To accomplish the aim one research question is addressed.

1. What are the factors influencing the sustainable development of the ready-made garments industry of Bangladesh?

1.5 Delimitations

This study intended to include the perspectives of both suppliers and buyers of the ready- made garments sector. However, due to the pandemic, the respondents were limited to only suppliers as it was not possible to reach the buyers as well in such harsh conditions.

The participants were also limited to eight only, if more responses were collected it would have further enhanced the generalizability of the study. The research is directed at medium and large suppliers and interview data has been clarified in connection with the theoretical framework to resolve the aim of the research. The scope of this study extends to the entire ready-made garments sector of Bangladesh.

1. 6 Dispositions of the study

The study comprised of six chapters with adequate discussion in each part. Chapter one is about an introduction where the literature gap is discussed relating to the research title and the aim of the study is reflected. In chapter two, the author assembles a literature review covering the research topic and at the end, a theoretical framework is mentioned

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5 developed by the author. Chapter three is about the methodology and which method has been used to collect the primary and secondary data along with the way of analysis.

Chapter four concentrated on the findings and linked the finding with theories discussed in chapter two. In the last chapter study will be concluded through a brief explanation of the results along with mentioning research limitations and future research directions.

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2. Literature review

In this chapter Overview of the literature related to the sustainable development of the ready-made garments industry of Bangladesh is evident. Literature review comprehends discussion on factors like political unrest, Compliance, Technology, Research and development, competitors, diversifications, sustainable developments, Marketing strategy and how these factors hindering the stable growth and pushing development in unsustainable condition. Afer this chapter a theoretical framework is displayed following the research aim and relevant theories.

2.1 Overview of export growth of Bangladesh RMG sector

Bangladesh is a small country and recognized as an emerging economy based on the ready-made garments industry in Southeast Asia (Rakib and Adnan, 2015).

Behind the tremendous success of the Ready-made garments industry of Bangladesh with on an average 20% growth rate annually, the government’s timely policy support, cost- effective working forces were the remarkable reasons (Berg and Hedrich et al., 2011). It is projected by McKinsey, a management consulting company, Bangladesh has high growth potentials in the next 10 years and there is a possibility the European and US buyer will be continuing & expanding their sourcing from Bangladesh (Berg and Hedrich et al., 2011).

Bangladesh garments industry not only improved itself but also facilitated other linkage industries to be developed. Along with the spinning, weaving, dyeing industry this sector contributed to other economic activities like Banking, insurance, packaging, hotels and tourism, recycling and many more (Hasan et al., 2016). This significant sector has possession of whole economy of the country directly and indirectly.

Foreign earnings through textile and garments industry were increased to 3.7 million USD between 1996 to2005 and the flourishing prospects were projected of this most developed sector at that time (Haider, M.Z., 2007) later the RMG industry of Bangladesh has become the second-largest exporter in the world with the help of some effective components like technology in manufacturing, minimum labour cost, government supportive role accordingly and Multi-fiber Agreement (Ala and Manoharan, 2019).

75% of the RMG products are categorized in shirt, T-shirt, sweater, and jeans and 80%

of the apparels export to the EU and USA (Haider, 2007), when 59% of the total export to the EU (BGMEA 2015) This achievement was advantageous as EU extended the helping to import quota/duty free imports from Bangladesh (Ala and Manoharan, 2019)

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7 and the RMG export market export share to Europe market is increased very well in between 2013 to 2018 Fiscal Year (figure 1.1).

Figure 1. 1 Bangladesh ready-made garments share in the European Union (Source EPB, 2019)

In the last update of the Bangladesh export promotion bureau (EPB) woven and knitwear growth rate increased 7.18% and 10.40% respectively and stood the country’s first foreign earnings sector with 83.49 million USD in 2017-2018 (Figure 1.2).

Figure 1. 2 Bangladesh export by major product (Source EPB 2019)

The low cost of labour is the noteworthy one that attributed the Bangladesh garments industry towards the flourishing foundation. In Bangladesh, the labour cost for the apparel industry comparatively lowest than any other country in South Asian region (Kurpad, 2014). According to (Muhammed, 2011) Bangladesh garments worker receives wages

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8 hourly ¢ 6 when in India & Pakistan it is ¢30, in china ¢30, in Sri Lanka ¢40 and In Thailand ¢78.

A shirt costs $5.67 where ¢12 goes to labour and $3.69 spends on materials and finishing (Kurpad, 2014) as reported by one garment manufacturing company in Bangladesh.

Labour association and relevant forum demanding amendment of the wages law 2006 and increase the wages structure so long. Now the minimum wage is TK 5000 minimum (Hasan et al., 2016).

Export earnings from the garments industry are increasing consecutively as the government has taken necessary initiatives to develop compliance and workplace safety security (BGMEA, 2016). As reported by Bangladesh bank data during October to December quarter of 2017 the export earnings from the RMG sector are $7,628.67million which is almost 8% increased than the same quarter of 2016 (Hossian and Kabir et al., 2019). In the 2017-2018 FY, the export earnings from this sector increased 8% more than the previous year with the value of US$ 30.61 billion which is 11.23 percent of GDP (EPB, 2018).

The ready-made garments industry of Bangladesh has been achieved huge success consecutively but there is a challenge to continue its growth rate stable and achieve the highest level of potential (Rakib and Adnan, 2015). The overall amount of the earnings from this sector is increased in every consecutive year but there is unstable growth rate.

Though, Bangladesh occupied the second position in ready-made garments export but providing only 6.4% of world demand. On the other hand, China occupied the first position with providing 36.4% of the total demand. It is a remarkable difference between the two countries as Bangladesh is still facing backward and forward linkages (Mohibullah and Jannat et al., 2018).

Last decade woven garments occupied its first position in export earning with success (Figure 03). By 2007-08 to 2016-17 FY export earnings from this segment stood at US$

5167.28, 5918.51, 6013.45, 8432.40, 9603.34, 11039.85, 12442.07, 13064.61, 14738.74, 14392.59, and 15426.25 million respectively and the rate of growth is 10.94%, 14.54%, 1.60%, 40.23%, 13.89%, 14.96%,12.70%, 5.00%, 12.81%, (-)2.35% respectively (EPB 2020). It is noticeable in 2016-2017 FY the growth rate gone down (-) 2.35% on the other hand in 2010-2011 FY growth rate was 40.23% (Figure 1.3)

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9 Figure 1. 3 Export growth of woven garments during 2007-2008 to 2017-2018 (own) Knitwear garments possessed the second position in the last two decades with successful achievement (Figure 04). During 2007-2008 to 2017-18 FY export earning stood from this segment were5532.52, 6429.26, 6483.29, 9482.06, 9486.39, 10475.88, 12049.8,12426.79, 13355.42, 13757.25 and 15188.51 million USD$ respectively and the growth rates is 21.50%, 16.21%, 0.87%, 46.25%, 0.05%, 10.43%, 15.02%, 3.13%, 7.47%, 3.01%respectively (EPB, 2020). In the Knitwear sector, it is also the growth rate unstable in 2011-2012 FY the growth rate comes down at 0/05% when 2010-2011 FY it was growth rate with 46.25%. (Figure 1.4)

Figure 1. 4 Export growth of knitwear garments during 2007-2008 FY to 2017-2018 FY (own)

If we see the growth knitted garments in the month of March - April in FY 2013 to 2014 it was 2748 & 54 Million BDT (Bangladeshi Currency) which was BDT 9504 in the previous month of February and the growth rate declined (-)98.03 (EPB 2020, BGMEA 2019).

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2.2 Sustainable development

Despite ready-made garments industry has booming growth, natural resources also exploiting in this development process and the ultimate impact goes to sustainability (Salam and Senasu, 2019). Sustainable development has become a challenge in the local and international market and existing business facility being measured by measuring sustainability (Salam, M.A., 2018). When the multi-Fiber Agreement is expired in 2005 it has become a challenge for Bangladesh to continue the pace in the International market (Ala and Manoharan, 2019). It is shown in table 2.1, Since 2014 factories are shutting down which is also indicates unsustainable development.

Table 2. 1 Showing decline of the Bangladesh ready-made garment factories annually (EPB, BGMEA)

Sustainability is maintaining the current development to enjoy the benefits in the future in the long run (Ahmed., 2009). Development is difficult and it is more difficult to make sure the sustainable development (Mohibullah et al., 2018). No doubt that the garments industry has achieved success with the help of Quota and GSP Facilities, the question remains whether the development sustainable or not and according to (Islam, and Pattak, 2017) if Bangladesh cannot enjoy the GSP, the bad impact will be reflected on total export status straight away.

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11 Bangladesh has been enjoying Generalized system preferences (GSP) as a developing country that the preferential tariff system rules come under world trade organization (WTO) (Islam, M.R. and Maruf, K.N., 201), but once Bangladesh will be graduate from the developing country to a developed country in 2027 as projected, the country will lose the preferential facility in tariff and 8% to 10% duty will be imposed in export apparels item (Hashim, 2019).

Unsafe working environment and lack of compliance code of conduct maintaining Bangladesh lost the Generalized System of Preferences (GSP) facility doing business with USA (Islam and Rakib et al, 2016) and paying almost 16% tariff in terms of exporting apparels item (Alam and Selvanathan et al, 2017). The export share is already been declined in the USA market from 21% in 2013-14 to 17% in 2017-18 (Figure 1.5) over 2013 to 2018 FY.

Figure 1. 5 Bangladesh RMG export in USA (EPB 2019, BGMEA 2019)

This noteworthy industry is facing so many problems and yet to climb lots of peaks to achieve sustainable development (Rakib and Adnan., 2015). This study intends to investigate factors that hinder the growing instability of export and sustainable development. Factors this study will investigate are Compliance, political unrest, technology, research & development, product and new market diversification, competition, and marketing strategy.

2.2.1 Compliance

A secured work environment with safety, health, and welfare of workers along with maintaining the licensing and registration of the factory is the concerns of compliance (Rahman et al., 2010). Bangladesh Garment Manufacturers and Exporters Association

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12 (BGMEA) and Bangladesh Knitwear Manufacturers and Export Association (BKMEA) fixed a measure regarding compliance like all factories must have substitute stairs, necessary fire equipment, Factory layout should be approved from authorized concerns to assure the safe building construction, Workers group insurance, Sanitation must be hygienic, first aid appliance and minimum standard wages facility for the workers (Rahman and Hossain, 2010).

After taking those necessary measures by the BGMEA country’s highest relevant association a long time before the incident and irregularities are going on. The tragic incident of Rana Plaza collapse in Bangladesh back in 2013 left almost 1,134 workers dead and this accident went into worldwide public and merchant’s attention (Kenney, 2013).

Labour activists are offended following the collapse and claimed Bangladesh government nor buyers from developed country concern about their responsibility for protecting the workers in the workplace (Yardley and Manik, 2013). Rules have been announced but no follow up whether it is implemented or not and the probability to happen the accident existing.

Chowdhury & Tamim (2016) mentioned the reason for the two incidents of Tazreen Fashion Limited and Rana plaza collapse negligence of the owner and mid-level managers.

Later, the government and relevant associations follow up with the victims and recommended the compliance and initiative to an alternative job with compensation (Hasan and Parven et al., 2018).

World world-recognized compliance bodies is working collaborate with local government and private relevant association like ILO, ISO 14001, WRAP, BSCI, ETI, SAI and ELA to help the industries to improve the working environment and production (Rahman and Hossain, 2010).

Following this incident two major stakeholders Bangladesh trade unions and the global brands on 15th May 2013 come up with an agreement of Accord Alliance to make sure the improvement of fire and building safety and Bangladesh Garment's worker safety (Alamgir and Banerjee, 2019).

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13 Bangladesh Government also agreed knows as sustainability compact with the ILO, EU, US, and different other government actors to increase collective bargaining rights and workplace safety through amended the labour act 2006 (Carlson and Bitsch, 2018).

After losing the quotas facility and GSP in the USA Bangladesh Garments Industry is in inconvenience and practicing social compliance become the most necessary one. The ideal practice of social compliance will enable the international market the highest possible way (Uddin, 2014). Social compliance is a process in which organizations undertaking to secure the health, safety, and rights of the employees, along with the environment in which they conduct the business operations (Alam et al., 2017).

It is must say RMG sector of Bangladesh has brought a revolutionary change in equal rights of working outside of the home with a male. Women were used to looking after the home chores only but now 80% are the women of total RMG manufacturing field and they are contributing to their family economically (Kurpad, 2014).

But female workers still depriving of legal rights like maternity benefits (Hasan et al., 2016) and a safe working environment. They are tending to be underpaid and physically assaulted by employers and even by the co-workers. Moreover, the female workers are being forced to work long hours in a whole week to meet the shipment date as they do not have job security (Robinson and Falconer, 2013).

2.2.2 Political Unrest

Despite Bangladesh RMG sector made success, this sector had to face a political impasse every year before national elections and brutal attack on a law enforcement team, firing in a public bus or product laden trucks, block the highway are common practice of politics. It is opened that, ready-made garments sector is mostly affected by envious politics (Kamal and Kaiser., 2015).

Political unrest and striking by opposition party strongly affects lead time (Rakib and Adnan, 2015). Lead time is the most competitive advantage of suppliers from any country. Lead time refers to the time between an order has been received to supplying the product to the buyer. Bangladesh is not in a good position in lead time maintenance comparing with other competitors. Lead time in woven garments is 90-120 days and knit garments is 60-80 days when the lead time of China is 40 -50 for the knit item and 50-60 is for the woven item (Haider, 2007). Deep sea port established common bonded

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14 warehouse establishment or private bonded warehouse permission can reduce the lead time (Habib, 2016).

Throughout the years, the RMG industry has been suffering on account of political instability. The political crisis is a remarkable challenge for this sector. All sorts of political activities should be apart from the business issue as striking hampered the supply chain and ultimate lead time. Sometimes the trade unions are influenced by the political party in terms of the clash, so those unions should be controlled in this regard (Rakib and Adnan, 2015).

Not only for garments sector but all other industry suffers if any political instability occurs. It was reported on most pioneer country’s newspaper Prothom aloo in the fiscal year of 2014 was very crucial for the industry as 45 days strike happened and cost almost

$154 million. Most of the garments factory and head offices are in two major cities named Dhaka and the Chittagong and the strike, rally and human chain have been called in these major locations and it is difficult to conduct the business operations. This political incident hinders the supply chain management. It became difficult to move the raw materials and production-related stuff during strike or rally. Not only materials movement but the officials and government are facing to attend the office in due time. It was the common scenario the finished goods cannot be shifted to port because of fear of political incident. Ultimately political unrest hampers the lead time and making challenges in the international market (Uddin, 2014).

Smooth and stable political practice is the precondition of development country building.

Democratic government policy and appropriate fiscal policy can take the economic growth towards. According to (Islam, and Pattak, 2017) Bangladesh is under black shadow because of political instability and labour unrest in the garments industry along with other important issues like the law is not equally implemented for all, Corruption is practicing in the government office and non-government office simultaneously, Political party is not practicing democratic system in doing politics, Some irrelevant demand required by religious political party and conflicts ongoing between different political parties.

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2.2.3 Technology

The importance of technology is undeniable to achieve a competitive advantage in the business field, as it has a strong role in the production and business communication (Bhatt and Grove., 2005).

Apart from expiring quota system RMG industry of Bangladesh has challenges to focus on the high technology rather than the labour-intensive business model (Ala and Manoharan, 2019)

Technological advancement is now so high in the present competitive business world (Bhatt et al., 2005). In business communication, Production, Marketing, Research and design and supply chain use of technological tools is not new things for Bangladesh (Mottaleb et al., 2011). But it is a matter of regret the best use yet to be started in the required field. Artificial intelligence is the new dimension of the tech world and it has an impact on the present competitive business field.

In the last decade infrastructure of the business has become digital with interconnection amid produce, process, and services (Bharadwaj et al.2013).

There is not enough training opportunity giving apparel technology-related education in Bangladesh and the quality is not up to the mark (Rakib and Adnan, 2015). A dedicated research and training institute is must require in the RMG sector to conduct the necessary training and research to cope up with the new technological advancement in the global competitive market.

In the near future technological advancement would be the competitive advantage in the global business field (Cavusgil et al., 2014). Bangladesh is not doing good in information and communication technology. As Global knowledge index, 2020 published the list of 138 countries and Bangladesh ranked 112th in south Asia while Nepal and Pakistan 110th and 111thconsecutively. Neighbouring country India placed 1st. Apart from information and communication technology this report of the summary measure for tracking the knowledge achievement of countries at different level like; economy and the general enabling environment, higher education, research, development and innovation, pre-university education, technical and vocational education, and training (Global knowledge index 2020, Dhaka tribune). Technology is a factor in the framework of this research that has the common importance in the Home country and international field at the same time. Bangladesh adopts ultra-modern technology

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16 instead of using obsolete technologies. There is duty-free technology import facility for the export-oriented manufacturer but for maintenance they must hire foreign technicians and still have some overall operational cost (Islam, and Pattak, 2017).

There are advantages and disadvantages of foreign direct investment but having the chance to learn global standard management tools could be the biggest chance. Recently Japan a well-developed country announced to establish med-tech and IT companies in Bangladesh and Bangladesh has been added to Japan in a list to get the subsidy. Japan would like to invest in the newly established economic zone in Bangladesh that would be the largest investment in Bangladesh ever (Dhaka Tribune, Japan Bangladesh Chamber of Commerce). These initiatives give a positive indication for the Bangladesh garments industry for a better sustainable future.

2.2.4 Research & Development

Research and development are the processes by which a company can get the knowledge and utilize it to improve the different departments of the organization (Shahriar et al., 2014). To achieve strong growth and satisfactory improvement Bangladesh RMG sector need conduct research and development project in home and international market simultaneously. Research conduction by the competent researcher is required to make improvements and overcome the challenges of the garments industry of Bangladesh. The R&D section does not only deal with market or product diversification but starts from the fabrication to ends at finish product along with the latest trend world demand (Mohibullah and Jannat et al., 2018).

Bangladesh RMG sector yet to be self-contained with global standard research & design house and as a result, they are making the cloth in accordance with the design providing by the buyer (Rakib and Adnan, 2015). Even the designers of Bangladesh are following the copy and paste method in designing the apparel items. With proper research conducting Bangladesh would be able to adopt contemporary branding & fashion trend (Rakib and Adnan, 2015).

RMG sector is very competitive in the international market as it is about fashion and trends. To compete in the global market properly Bangladesh garments industry, must be conscious about developing the market and product.

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17 BGMEA established a school offering a bachelor’s degree in fashion designing when BKMEA under the establishing research center (Hasan et al. 2016) and the government must take the necessary initiative in this regard.

2.2.5 Diversification

Diversification stands for exploring new market opportunities as well as newer clothing products (Ahmed et al., 2013). Product and market diversification is most required factors of the Bangladesh RMG sector to compete in the present competitive market (Haider, 2007). RMG suppliers can find a new market like, Russia, Brazil, Spain Japan, Mexico, and India could be the target (Rakib and Adnan, 2015). A bilateral relationship between two countries is most important where the mutual business agreement can be committed.

Apart from market diversification, Bangladesh can think about diversifying products with a high value like suits, Lingerie rather than low-value product like T-shirts (Hassan, 2014).

Due to diversification Bangladesh's ready-made garments industry should be classified into two stages like woven and knitwear. Global fashion is changing daily as customers

‘taste diversifying, so the entrepreneur of the RMG sector has to concern about it and diversify their product and design accordingly. Research would help to know about the contemporary demand of the customer (Hasan et al., 2016).

2.2.6 Competition

Bangladesh is having trading access worldwide free and fairly as a developing country.

Bangladesh's ready-made garments industry achieved the expected improvement but the highest level of potentiality achievement through competing in the global market is now a challenge (Rashid and Taibb., 2016).

The competitors are offering comparatively cheap prices of the product to buyers for surviving (Hasan, 2013; Ali et al., 2017). Compliance issues influence buyer’s decisions and they also looking for alternative markets such as Vietnam, Ethiopia, Myanmar, India, or Cambodia (Campaign, 2012; Ali et al., 2017).

Competition with the existing players would not be easy without achieving competitive advantages. If raw materials can be collected from the local market, then it will help the industry in many ways and cost will be minimized. Competitor analysis is most important

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18 to understand the advantages of them and it helps to make strategic marketing policy based on the contemporary business environment. The average growth rate of Bangladesh ready-made garments is 15% annually and the global market has huge demand, but this sector should be conscious about the competitors to tackle the growth fluctuations and secure future challenges (Islam, and Pattak, 2017).

2.2.7 Marketing strategy

Strategic marketing is an important appliance in the global market. Bangladesh RMG sector has been suffering because of weak marketing policy in the international market (Akterujjaman., 2013) Before a marketing campaign, knowledge of strategic marketing is required. There are many marketing methods manufacturers can think of the most effective ways to reach out to the global market successfully. The fashion show, trade show, visual merchandising, company outlet and discount advertisement could bring fruitful results in the international market (Mohibullah and Jannat et al., 2018).

2.3 Theoretical Framework

It is evident after reviewing the above literature, sustainable development of Bangladesh's ready-made garments industry is under threat. In the theoretical discussion, the author convokes different relevant theories by scholars regarding the sustainable development of the Bangladesh garments industry.

The theoretical framework has been developed after reviewing what theory discussed which has been illustrated in figure 2.1. In the framework, it is shown the factors that influence the sustainable development of Bangladesh ready-made garments industry that already been discussed by scholars separately. They are Compliance (Alamgir and Banerjee, 2019), Political unrest (Islam, and Pattak, 2017), Technology (Cavusgil et al., 2014), Research & Development (Mohibullah and Jannat et al., 2018), Sustainability (Mohibullah et al., 2018), Diversification (Hasan et al., 2016), Competition (Campaign, 2012; Ali et al., 2017), Marketing strategy (Mohibullah and Jannat et al., 2018). It is illustrated in the framework of this study Compliance, Political unrest, Research &

Development, Competition, Marketing strategy, Technology, Diversification are the factors that influencing the sustainable growth and development of Bangladesh's ready- made garments industry.

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19 Figure 2. 1Factors influencing sustainable development of Bangladesh ready-made garments industry (Own).

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20

3. Methodology

This chapter gives the idea about the method that has been used to conduct this research along with the answers to why this method relevant to the study. This part also explained the processes of data collection and analysis of the findings to come with aiming results.

3.1 Philosophical stance

Research philosophy determines the thinking behind the knowledge and relevant beliefs and assumptions regarding the development of that knowledge (Saunders, et al., 2009).

Although knowledge development may not encompass the development of a major theory or concept, still, finding answers to a small problem that in a specific field of study can be regarded as the development of knowledge.

3.1.1 Ontology

Ontology refers to acceptance of the role of reality or existence (Saunders, et al., 2009).

Ontological adoption helps the study to be shaped in a way of how the researcher see the topic and research objects. Therefore, ontological possession in research helps to differentiate between what the researcher sees and what research project is required to be conducted. ntological term has been adopted in this study as I believe reality considered to be subjective.

3.1.2 Epistemology

Ontology and epistemology have interrelated functions in shaping the research questions from the theoretical perspective of the researcher (Berryman, 2019).

Epistemology helps assumptions about knowledge, what constructs possible, valid, and lawful, and how this knowledge can be communicated to others (Burrell and Morgan 1979).

To understand the implications of various epistemological assumptions and how a researcher can communicate knowledge in the course of the study (Scotland, 2012).

This study adopted epistemological criteria to secure the required level of credibility to validate and support the research question. All respondents in this study were experienced with sustainable development and vast knowledge in the area of ready-made garments industry which increased the potential of epistemological suitability.

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21

3.2 Research Strategy

This segment discusses different research strategies, which have been applied for this study along with interpretation for obligation those strategies or approaches.

3.2.1 Qualitative Approach

Qualitative or quantitative or both can be applied in research and this study, I have applied a qualitative research approach. By nature, qualitative research helps to deepen understanding about the social facts or phenomenon (Hancock and Ockleford et al., 2001).

The method depends on the intuition based on what result the study is expecting (Baker., 2000). There are many methods of researching Surveys, interviews, Questionnaires, Case studies and observation (McDonald, 2005; Walsh et al., 2005). This study is conducted through qualitative methodology along with applying interview questions.

To know, how people see things in a certain issue qualitative research approach can be best applied (Flick., 2018). This study intends to know what suppliers of Bangladesh ready-made garments are thinking about sustainable development and how this industry is influenced by different factors.

It is considered in this paper to use the appropriate method along with the way to have primary and secondary data from concerned sources & evaluate towards fruitful results.

3.2.2 Inductive Approach

In terms of the relationship between study aim and theory, research strategies are possible to be induction, Deduction and abduction (Saunders et al., 2009). The research method is an important issue depending on how the theory will be applied in the research procedure.

The Inductive approach theory being developed by analyzing collected data to get a profound understanding of any phenomenon of a complication. Following the nature of this study, I have considered an Inductive approach.

3.2.3 Literature study

Literature help the researcher to understand the background of the study topic and think about research necessaries (Fink, 2019). This study consists of current literature regarding

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22 sustainable development concepts along with deep insights into Bangladesh ready-made garments industry.

The initial theoretical framework has been developed after reviewing literature and theories which focus on sustainable development of the ready-made garments sector of Bangladesh in different aspects. The flow chart of the methodology is shown in figure 2.2.

Figure 2. 2 Flowchart of methodology (Own)

3.3 Data Collection

3.3.1 Primary data collection

Primary data collections through interviews were the initial attempt of this study which helped to overview the research topic and develop accordingly. Primary data helps the researchers to get the contemporary situation of the study topic (Baxter et al., 2010). For this study primary data has been collected through the organization’s websites and interview with ready-made garments suppliers (Top level Managers of the organizations).

3.3.2 Secondary data

Secondary data was also considered significant for conducting this study. Previous studies argued about issues that hindering the sustainability of Bangladesh's ready-made garments industry. The very renowned web portal has been used to get the peer-reviewed articles and previous studies that related to the study topic. The author tried to maintain

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23 the ordering in terms of the year of literature publications. Few business journals were also used to support the study.

Governmental and private organization’s website was the sources of collecting recent data. Bureau of Statistics (BBS), Export promotion bureau (EPB), Ministry of Commerce (MOC) and private relevant associations like Bangladesh garments Manufacturers and exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exports Association (BKMEA), Bangladesh Jute Goods Export Association (BJGEA) and all other bank websites was the source of getting valid and reliable data.

3.4 Interview Process

Contact detail of ready-made garments suppliers was collected from the website of Bangladesh garments manufacturers and export association (BGMEA). A formal request letter sent regarding taking the interviews and utilize necessary information for the study.

Apart from waiting to get feedback against email author contacted them over phone calls and made them understand the importance for their participation.

It was difficult to interview the managers of the RMG supplying companies from Bangladesh through a phone call that is why email has been sent along with questionnaires to interviewees so that they can understand the interview questions first and can answer accordingly. There were questions regarding the numerical statement, and which was not possible to answer in the interview session properly. Before taking the interview a set of questionnaires that were reviewed by the supervisors of this study project has been emailed to organizations so that participants can get ready to answer properly. Interview questions are interrelated and formed in the proper way to evaluate the research framework.

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24 3.4.1 Selection of Participants

This study focuses on respondents from the Ready-made garments sector holding managerial positions with relevant experiences in the sector. The companies involved in the study are the suppliers of ready-made garments from Bangladesh. Table 3.1 shows the detail of these companies and participants along with the date and time of the interviews. It also mentions the duration and mode of communications.

S.No. Position of Employees Experiences Date of interviews

Duration of Interviews

Mode of interviews

1 Deputy manager 6 Years 18.11.2020 45 Minutes WhatsApp

2 Executive director 4 Years 22.11.2020 1. Hours Zoom App

3 Senior merchandiser 12 Years 22.11.2020 30 Minutes Facebook Messenger

4 Assistant manager 10 Years 19.11.2020 50 Minutes Zoom App

5 Commercial manager 6.5 Years 24.11.2020 1 Hour 10 Minutes

Facebook Messenger 6 Managing Director 8 Years 24.11.2020 18 Minutes TalkU Calling

App 7 Manager (Admin &

HR)

18 years 22.11.2020 35 Minutes WhatsApp

8 Manger (International operations)

9 Years 28.11.2020 40 Minutes WhatsApp

Table 3. 1 Information of respondents and interviews conducted.

3.5 Operationalization

The interview questions of this study originate from existing theories regarding the sustainable development of the garments sector. o contain all the factors involved in this study, these interview questions are categorized into known themes relevant to the study.

Table 3.2 shows the operationalization of interview questions along with the theoretical links.

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25

S.No. Questions Theoretical mention Theme

1 What are the reasons for the export growth instability of ready-made garments of Bangladesh do you think?

Ahmed and Greenleaf et al., 2014, Ahmed et al., 2014, Haider, 2007.

Growth rate

2 Do you think technology is the matter in both home and international markets?

Bhatt et al., 2005, Ala and Manoharan, 2019

Technologies

3 Do you conduct any research for product or market development? If so, then how?

Mohibullah and Jannat et al., 2018, Shahriar et al., 2014.

Research &

Development

4 Does a competitor matter for your international marketing?

Rashid and Taibb., 2016, Islam, and Pattak, 2017.

Competition

5 Does your company take any initiative for product and market diversification?

Hasan et al., 2016, Rakib and Adnan 2015

Diversification

6 What challenges do you meet in marketing in international markets?

Akterujjaman., 2013,

Mohibullah and Jannat et al., 2018

Strategic Marketing

7 How important compliance is for sustainable

development? Yardley and Manik, 2013,

Hasan and Parven et al., 2018.

Compliance

Table 3. 2 Operationalization of interview questions link with theme and theories.

3.6 Validity and Reliability

Validity in research ensures the appropriateness of research questions for desire outcomes, the right choice of methodology, proper sampling and data analysis, and finally valid results (Leung, 2015).

This study fulfilled the authenticity of the research process from beginning to end. I selected the literature using google scholar, a web search engine that provides scholarly literature. Both data collection and process maintained valid process and findings of this study can be generalized to any other ready-made garments industry which would help in terms of gaining sustainable development.

Reliability is related to consistency, stability, and repeatability of the results along with the researcher’s ability to record information properly (Selltiz et al., 1976).

To assure the reliability of the study author assessed all sorts of criteria during the research process as it important to be maintained (Merriam, 1998).

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26

3.7 Analysis

The data collection and analysis process in qualitative research are complex (Grbich, 2012). According to Grbich (2012) before choosing the analysis process researcher may consider three key areas these are, the impact of views and choice of the researcher in the research journey in terms of data collection and analysis. Secondly quality of the data and how to manage it in an appropriate way and method. Finally, how to display the analyzed data in empirical findings and theoretical interpretation. In this study collected data were transcribed and placed in the group following appropriate themes. Finally, these were formed and prepared for further presentation in empirical data and analysis.

3.8 Research Ethics

Ethics is an important issue of any research (Silverman, 2011). During the research, the conduction author has to maintain an ethical practice in many ways. This study, ensured research ethics in form of maintaining the privacy of the participants, avoiding deception, anonymity, and consent of interviewees before recording their responses.

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27

4. Empirical Study

To collect the data from eight ready-made garments suppliers of Bangladesh have been interviewed by the author and the detail of suppliers have been explained as far they allowed being disclosed. In chapter, empirical findings are discussed in an organized manner maintaining the link with theoretical factors and framework discussed in chapter two. The chapter started with an explanation about the suppliers from Bangladesh and at end of the chapter Suggestions from the respondents regarding the sustainability of Bangladesh's ready-made garments are mentioned.

4.1 An overview of the ready-made garments industry in Bangladesh

The ready-made garments industry is accelerating the country’s economy remarkably since its inception through contributing almost 84.5% of total export earnings (Barai, 2020). Now Bangladesh clothing industry occupying a position as the second-largest exporter right after China and four million people are working directly and indirectly in this sector where 60% of workers are female (Bangladesh Bank, 2018). According to Bangladesh garments manufacturers and export association (BGMEA 2020) 4376 garments factories are now registered in Bangladesh and most of them are trying to have a presence in the international market as an exporter.

This sector is not only contributing export earnings but also creating a number of employments along with helping to grow some other related industry like Banking, Finance, Technology, Transport, Insurance, Local raw materials manufacturing company as well as (Hasan et al. 2018; Barai, 2020). To continue the improvement and sustainable development aiming to overcome the future competitive challenges Bangladesh garment industry must be aware of the factors hindering the highest level of the potentials gaining (Robbani, 2000).

4.2 Summary of the organizations studied

Eight ready-made garments suppliers are studied in this study and this part gives a brief detail about the suppliers. Most of the managers from the different company asked for their anonymity for personal issues and the author determined not to reveal the identity.

The detail of the respondents is being explained in this part as far as possible.

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28 4.2.1 Supplier A

Supplier A (Paramount textile and garments Industry) export their product to European, American, Japan & Australian buyers. They started their commercial journey in the international market in 2008. The author interviewed a deputy manager of the company who is working for almost 6 years in this company. The company export oven, knitwear, and textile product. About their growth rate in this pandemic year, 2020 is 0 growth rate and almost loss project. He mentioned back in 2017-2018 was a good business growth rate but in 2016 it was a down growth rate.

4.2.2 Supplier B

Supplier B is exporting denim jeans & T-shirts to the Europe and United Arab Emirates for 12 years. An executive director responded the interview who is working 4 years in this company. The export average growth rate of this company is till 2019 was so good though it was fluctuating monthly and annually. But 2020 is very inconvenient because of a pandemic.

4.2.3 Supplier C

Mr. Rajib Ahmed is a senior merchandiser with 12 years’ work experience in the relevant field and in this company working 6.5 years. Supplier C export Denim jeans and socks in the European market but planning to connect with US Market. The company is doing business since 2003 and doing good till 2019. The growth rate was fluctuating between 15% last 3 years.

4.2.4 Supplier D

Khaza Sofian was the respondent from the company D who is working 10 years in this company with the designation of assistant manager. Company D is doing business with the EU and the USA since 2008. Before that, they were doing business in the local market.

The growth of the company was 4 to 5% increasing last 5 years and possibility has been created to get more orders but, in the meantime, pandemic makes the situation different.

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29 4.2.5 Supplier E

Company E is a manufacturer of winter jackets and their market is European countries.

MR obidul lslam was the respondent from this company who is working 6.5 years as a commercial manager.

In response to the growth rate status of his company, he said going fine positive fluctuation is happening since its inception except 2013-2014 FY.

4.2.6 Supplier F

The company F situated in the capital of Dhaka established in 1996 but come into international business in 2003 and doing business with the EU, USA, and China with a product line of Oven and knitwear. Shahnewaj munia is the manager who is working 8 years as a manager (Admin) responds the author on behalf of the company.

The export growth rate is decreasing last 3 years, and this year corona makes the situation more inconvenient.

4.2.7 Supplier G

Company G is a knitwear manufacturer and exporter to European countries since 2007.

Mr. Kauum Majumder the manager (Admin & HR) of his company responds to the author. It has been 9 years he is working in this present company but experience 18 years in this relevant field.

4.2.8 Supplier H

Company H exporting Knitwear to EU and Middle East countries since 2001. Mrs.

Mithila Afreen was responding to the author. She is working in this organization for 12.5 years as a Manger (International operations). The export growth last 9 years is good except 2020. The growth rate in some FY 20% but some years it was down growth like 10%. It can be said ups and downs but overall good growth.

4.3 Finding

The research questions were developed based on the research aim & research gap. The set of questionnaires made considering the research framework so that the author can

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30 justify findings regarding research aim through having the answers from the Bangladesh ready-made garments suppliers. All the respondents are responsible in different managerial positions having with above 5 years of work experience at the present company. Most of them asked to keep their identity anonymous, so the author is mentioning the respondents naming ordering alphabetic letter consecutively This part will explain the findings received from the interview participants and some recommendations from the interviewees.

4.3.1 Compliance issue has been questioned by foreign buyers

Reputed buyers from the international market are now formulated their code of conduct in terms of compliance issues maintenance which derive from conventions of international labour organizations. Bangladesh's ready-made garments industry is now under controversy and going through challenging situations with social compliance issues. All suppliers agree at this point that they are facing trouble maintaining compliance issues. This one is a reason behind the tragic down of the growth rate. Buyers are finding options towards some other markets as Bangladesh ready-made garments are not enough concern about following the code of conduct regarding compliance. The Tazrin fashion and Rana plaza tragic accident makes the situation hazier and the result is USA cancelled the GSP facilities since 2013. Suppliers are now very conscious about some areas are Child labour, forced labour, Health & Safety, Compensation, working hours, Discrimination, and proper management system as buyers required. It is reflected in the respondents saying that buyers are giving pressure on compliance issue, but they are not contributing to this with financial support. Some buyers strict the compliance but they are not flexible with product price-fixing and we suppliers are scared to bargaining the price of the product if the buyer does not make the purchasing orders. Suppliers are expecting the government and relevant associations to take initiatives in this regard.

4.3.2 Political unrest makes the growth rate unstable

Political violence is considered as one of the main reasons for the unsustainable development of Bangladesh's ready-made garments. Political unrest causes trouble in the total country’s export.

Political strikes and other assembly restrict supply chain management which hinders the production and ultimate lead time. Transport system become crippled for the strike and workers an official cannot join the work at the right time and sometimes factory gets shut

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31 down. Suppliers are scared to send their products towards the shipment if the strikers burn the products. They failed to make the shipment at right time and the buyers did not make return orders only because of the inconvenience in previously delayed shipment. If the shipment gets delayed many problems arise like expenditure of export processing documents along with banking charge so high. It totally about lost projects if shipments got delay because of strikes and political activities.

Respondents claimed around 2012 to 2014 FY political unrest made the business environment so hazy but last 3 years it's comparatively convenient. Apart from the political party student’s forum strike for many contemporary social issues which also make the inconvenient situation for business operations.

The government should make a roles business operation will be free from any political activities’ respondents think. Political violence not only hindering business growth but making bad perceptions about Bangladesh. Investors and buyers feel scared about political violence.

Some workers union involved with political parties and hampering the environment of the workplace and sometimes they force the workers to join the political campaign when the owner cannot say anything against them. They believe if the government does not take necessary measures in this regard it would be much challenging to continue the progress.

Political parties, private relevant organizations and government need to come in unity to make safe the business from all the political violence.

4.3.3 Technology is the most important instrument to achieve a competitive market

Technological advancement is growing up incredibly in the present world. In the business field impact of technology undeniable. Technology has been added a new dimension to business communication and production. Most of the suppliers of Bangladesh ready- made garments now concern about adopting the highest level of technological advancement, otherwise, there is a challenge to keep going on the pace. Specifically, respondent C said they want to implement very updated technological tools in their production line. They believe the adoption of the updated technology in the production line would help them to increase the production and achieve the desire lead time. Some respondents said still in the production lifecycle some tasks being section completed manually and it is taking more time that impacts the targeted production time. Apart from

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