Structural equation modeling for three aspects of green business practices: a case study of Bangladeshi RMG's industry.

Abstract

Green business (GB) had often been regarded as a pervasive trend that underlies the operations and performance of businesses. By portrayal of three aspects view of the green business, this paper evaluates green business approaches within the Bangladeshi ready-made garments (RMG) sector and provides a structured framework for the factors affecting the utilization of green business approaches. This study further evaluates how the environmental, societal, and economic impact derived green business practices. The framework is experimentally tested by the partial least square approach to structural equation modeling (PLS-SEM) concentrated on survey responses quantifying the green business practices within 40 RMG organizations situated in Dhaka and Chittagong, Bangladesh. The findings demonstrate that there is a positive relationship between environmental, social, and economic aspects. More specifically, the PLS-SEM estimation demonstrates that the interaction between environmental and economic sustainability has a substantial proportion of values towards profiling GB practice. Meanwhile, there is a vast gap for profiling the performances of environmental and economic aspects through social aspects within the RMG sectors of Bangladesh. Also, there is a significant difference between the predicted and factual green business adoption tendencies and views among different industrial enterprises, especially for waste management and water pollution based on the findings of the SEM-PLS model. Throughout the context of the rapid growth of socioeconomic development and new technological advancement, social level performance possess comparably weak influences of GB strategy on the within Bangladeshi RMG sectors. In the meantime, as the stricter law has a vital impact on the firm's strategies for becoming more environmentally friendly practices, it instituted as an essential variable for quantifying social sustainability. Moreover, the study recommends some suggestions emphasizing the part of the identified model in the context of encouraging business organizations to indulge in environment-oriented socio-economy actions and thus change the emphasis of potential GB study directions.