Garment Sector Research Articles

Responsible management practices in Bangladesh

This study aims to impact the responsible management practices of factories in the Ready-Made Garment (RMG) sector in Bangladesh. Collaborative research with our main partner - the BGMEA University for Fashion and Technology (BUFT) - on responsible management has contributed to the embedding of ethical practices in the RMG sector. More specifically, in a first stage of this program, the collaborative knowledge development is ingrained in the degree and executive education programs of BUFT - impacting about a quarter of the professionals entering the RMG sector in Bangladesh - and has informed the practices and policies of professional bodies, such as BGMEA in Bangladesh, MODINT in the Netherlands and the International Apparel Federation (IAF). Furthermore, in a second stage of this program, research on sustainability hot spots in the RMG value chain has influenced decision-making of the European Committee in relation to their sustainability policies. It substantially advanced the understanding of how European non-development policies and regulations aimed at private and public market actors contribute to or undermine sustainable development policies. The project delivered practical tools and innovative regulatory reform proposals with substantial potential for greater policy-coherence for development, thereby contributing to an integral approach focusing on a shift towards responsibility.

The impact of training and development facilities on job commitment among entry-level employees: Bangladeshi RMG perspectives

Purpose: The study intended to ascertain whether providing training and development facilities positively impacted the job commitment of entry-level garment employees in Bangladesh. Research Methodology: The response rate for the survey was 44.89%, derived from a sample size of 450 data points obtained by a basic random sampling technique. The study employed Microsoft Excel 2007, SPSS 22.0, and AMOS 23.0 to conduct exploratory and confirmatory factor analysis and structural equation modeling to assess the strength and reliability of the suggested research framework. Results: The study revealed a significant enhancement in the level of commitment among lower-level employees in the Bangladeshi garment industry when provided with training and development potential. Limitations: One primary constraint encountered in this study pertained to issues associated with data collection. The target demographic consists exclusively of individuals with lower levels of educational attainment. Allocating funds for research in finance remained a significant area of focus. As a result of these limitations, the survey was unable to gather nationwide data. Contribution: This study is distinctive as it focuses on individuals occupying lower-level positions within the Bangladeshi garment sector, exploring the potential avenues for professional advancement. Practical Implication: The study may benefit Bangladeshi garment firms' HR strategy and training and development plans. Environmental and internal variables can stress workers. Professional progress and quality training will help dedicated workers overcome these challenges. Novelty: The study is unique in two perspectives: the bottom-level employees and the emerging economy like Bangladesh.

Mandatory adoption of technology: Can UTAUT2 model capture managers behavioral intention?

In Bangladeshi ready-made garment (RMG) and textile sectors, technology-driven compliance standards are primarily imported directly from foreign buyers' corporate social responsibility (CSR) where managers do not have enough scope of involvement, engagement, or active authority. They neither have selection freedom nor adoption willingness. The aim of this exploratory research is to understand managers' perceptions around accepting these imposed technology-driven compliance standards in the name of safety through an empirical study of the RMG sector in Bangladesh. We have used the extended framework of the unified theory of acceptance and use of technology (UTAUT2) model with certain modifications. After analyzing data through structural equation modeling (SEM), a modified theoretical framework was revealed to capture managers' behavioral intention toward a complex technological system that does not automatically arise from self-willingness; rather it is mandatory acceptance. Based on this knowledge, we recommend that the UTAUT2 model be extended and revised to capture this kind of mandatory adoption of technology. The findings of this research can provide deep and effective knowledge and experience to international buyers in the RMG sector, global supply chain members, RMG factory owners, and government policymakers.

Unveiling The Shadows: Exploring Money Laundering Mechanisms In Bangladesh's RMG Sector

This study examines the intricate web of money laundering in Bangladesh's Readymade Garments (RMG) sector, a vital industry for the nation's economy. Utilizing two ethically sound focus group discussions (FGDs) with various stakeholders, including RMG representatives, labour leaders, legal experts, and law enforcement officers, the study was conducted in Gazipur, a significant centre for garment manufacturing in Bangladesh. The findings highlight the multifaceted nature of prevalent money laundering strategies in the RMG industries. Notable techniques include trade-based money laundering, smurfing and structuring, false invoicing, shell companies, offshore accounts, cost manipulation, informal value transfer systems (IVTS), and real estate investments. This research sheds light on the concealed financial complexities of the RMG industry, highlighting the need for vigilant regulatory measures and industry-wide awareness.

Leveraging transparency to shift capital‐labour relations in garment sector production: A critical analysis of the design and structure of the Bangladesh Accord

Little attention has been given to examples of innovative structural designs in the private labour regulation of garment global production networks (GPNs). This article addresses this gap by examining the Accord on Fire and Building Safety in Bangladesh, analysing its contested structural features, namely: (1) a legally binding basis, (2) a labour‐balanced executive board, (3) corporate critical mass and (4) transparency of functions. The authors’ findings contribute to the understanding of emerging hybrid governance mechanisms, combining multi‐organizational cooperative action with traditional capital‐labour dynamics to influence labour regulation in GPNs in new and contradictory ways.

Encounters of Syrian refugees and locals in the informal garment sector of Esenler district, Istanbul

This article focuses on relations between Syrian and local workers in the informal garment sector. It presents a framework showing the participation and integration of the Syrian refugees and the local workers’ response to this process. The findings are based on empirical materials collected in the Esenler district of Istanbul, including 60 interviews with Syrians and locals as well as participant observation in an informal garment atelier in 2020 to 2021. This study shows how Syrian refugees produce coping tactics and gain bargaining power. The research reveals different forms of relations.

Identification of benefits from Integrated Management Systems (IMS) to achieve Sustainability: A Systematic Literature Review

In the pursuit of sustainable development within Bangladesh's Readymade Garment (RMG) sector, this study undertakes an analysis of the substantial advantages of deploying an Integrated Management System (IMS). Focusing on ISO 9001:2015, ISO 14001:2015, OSHAS 18001:2007, and SA 8000:2014, the research illuminates the pivotal role of IMS in the context of this vital industry. The research methodology involved searching Google Scholar, Emerald, and Elsevier databases for IMS benefits from 2005 to 2022. Key IMS advantages were assessed through a questionnaire distributed to 248 representatives from 16 Bangladeshi RMG industry companies, resulting in 197 usable responses. The findings of this study reveal five major benefits of IMS in Bangladesh's RMG sector: improved resource utilization, reduced error and risk percentages, enhanced business sustainability, improved teamwork, and a reduction in duplications. This research offers both theoretical and practical implications. The study contributes to the literature by systematically reviewing IMS advantages and encourages managers to consider IMS for their organizations. Additionally, it provides valuable insights for decision-makers in formulating effective plans for IMS implementation, particularly in resource-constrained environments. Notably, this study holds significance due to its relatively unique focus on the major benefits of IMS implementation and can serve as a valuable guideline for IMS implementation in the RMG sector of developing countries.

The Influence of Auditor Ethics and Auditor Experience on Company Financial Reports

This research investigates the influence of auditor ethics and auditor experience on the quality of financial reports in the garment sector of West Java, Indonesia. This study employs a quantitative approach to measure auditor ethics and experience, utilizing statistical tools for analysis. The research targets financial auditors in Indonesia, with a sample size of 150 auditors selected purposively based on specific criteria.The study emphasizes the importance of auditors in ensuring the accuracy and reliability of financial information. The garment industry in West Java holds significance in Indonesia's manufacturing sector, particularly in terms of employment and export revenue. The research aims to contribute to the understanding of how auditor ethics and experience impact financial reporting quality in this specific industry.

CLOTHING MARKET: IMPACT OF INDUSTRIAL REVOLUTIONS, TRENDS AND PERSPECTIVES

Eter Kharaishvili 
 E-mail: eter.kharaishvili@tsu.ge 
 Professor, Economics and Business Faculty of Ivane Javakhishvili Tbilisi State University 
 Tbilisi, Georgia
 https://orcid.org/0000-0003-4013-7354 
 
 Nino Lobzhanidze 
 E-mail: nino.lobzhanidze@tsu.ge 
 Assistant Professor, Economics and Business Faculty of Ivane Javakhishvili Tbilisi State University 
 Tbilisi, Georgia
 https://orcid.org/0000-0001-5830-6924
 
 Abstract: The article evaluates the role of the clothing industry in the economic development and well-being of countries. Based on bibliographic research, it analyzes the main trends in the garment sector, considering historical, economic, political, social, and other factors that influence the development of the clothing industry.
 It is argued that historical industrial revolutions have had the most profound impact on the primary directions of the textile industry and the guiding principles of market development. Consequently, the key stages of garment industry development and market improvement are assessed in light of four industrial revolutions.
 By using global textile industry data, the study derives the current trend and the sector's development perspective while also assessing the clothing industry's negative impact on the environment.
 Based on the comparative analysis and development trends of textile and clothing production in Georgia, the main indicators of the sector are analyzed. 
 The study utilizes bibliographic research, analysis, synthesis, comparison, expert, matrix, factorial, and other methods. It evaluates sector-related theoretical and empirical materials and reports.
 The findings provide insights into the textile market's development prospects, and recommendations for potential directions in industry development are offered.

Artificial Intelligence (AI) In Garment Design: Opportunities And Challenges In The Ready-made Garments (RMG) Sector of Bangladesh

This study looks at the pros and cons of using artificial intelligence (AI) in planning ready-made garments in Bangladesh's Gazipur district, where the garment industry is booming. Twenty designers from different institutions using AI and traditional software tools to create attires were involved in the study. The results show that applying AI to the field comes with both opportunities and challenges. AI has made garment creation more efficient, less expensive, more productive, more customizable, better at predicting trends, and more sustainable. However, it raises issues such as job loss, quality control, data privacy, dependence on technology, and ethical questions. This study shows how important it is to take a balanced approach to adopting AI, considering its possible benefits while addressing its risks, so that Bangladesh's ready-made garment industry can continue to grow and thrive.

Influence Free Cash Flow and Growth Opportunity against Company Values with leverage as a Variable Intervening

The purpose of this research is to test and analyze the effect free cash flow and growth opportunities to company value with leverage as a variable intervening in textile and garment companies on the IDX in the 2019-2022 period. In this study the approach used by researchers is quantitative research and uses statistical formulas to help analyze the data and facts obtained. This data collection uses secondary data which can be taken from the Textile and Garment Sector companies listed on the IDX in the 2019-2022 period. The research model used ispath analysis. Data processing path analysis using program assistance IBM SPSS Statistics 25. The research results conclude Free Cash Flow not able to affect the value of the company (PBV), Free Cash Flow able to influence Leverage (THE), Growth opportunity (PER) is able to affect the value of the company (PBV), Growth opportunity (PER) is not able to influence leverage (THE), Leverage (DER) is not able to affect the value of the company (PBV), Leverage (DER) is not able to mediate the relationship between free cash flow to firm value (PBV), Leverage (DER) is not able to mediate the relationship between Growth Opportunity (PER) to firm value (PBV).

The geographic disparity of agglomeration economies: Evidence from industrial activities in China's emerging greater bay area

There has been growing interest in understanding how industrial variation and locational preferences are connected in recent years. However, little research has focused on the geographic disparities of industrial activities within megacities in terms of their spatial and functional variations. This study aims to addresses this issue by examining industrial agglomerations in China's Greater Bay Area (GBA) using points of interest (POIs) data. By extracting keywords from POIs' names that provide valuable insights into the specific characteristics of local industrial sectors, it first identifies different thematic topics related to industrial activities using topic modeling. Industrial agglomerations are then clustered, given their topic importance, in order to depict the spatial and functional variation within the region. In this connection, a dual-center layout with distinct professional tendencies is reported in the central and southeastern GBA. These two subregions are further selected and investigated to understand their spatial-functional characteristics and locational preferences. Our findings indicate that the garment and electronic sectors are the dominant sectors in the central and southeastern subregions, respectively, whereby industries can obtain more competitive advantages by concentrating geographically. Practical implications of regional industrial activities, including upgrading conventional manufacturing modes and spatial-functional inequality, are discussed.

Estimation of an ARDL (m, p, q, r, s) Model to Determine the Long-run Effects of World Income, Relative Price, Real Exchange Rate and Employment on Export Demand for the Garment Sector of Bangladesh

In this paper, an ARDL (m p, q, r, s, s) log-linear export demand function is estimated to find the long-run impacts of world income, relative price, real exchange rate, and employment on exports of the garment sector of Bangladesh using modern econometric techniques based on time series data from 1979-2020. Long-run significant relationships among exports, relative price, real exchange rate, world income and employment are found. The VEC model's estimated results indicate short-run bidirectional causalities between different pairs of variables. The long-run causalities are found while exports and employment are the endogenous variables. The estimated results indicate that both long-run and short-run exports are influenced positively and significantly by world income. Relative price, real exchange rate and employment carry negative signs for both long-run and short-run in which the effects of relative price and real exchange rate are statistically significant in the long run which implies that a 1% decrease in relative price, exports will increase by 1.256%. It is found that the coefficient of ECM(-1) is -0.9705 which is statistically significant at any significance level, suggesting that when the export value is above its equilibrium level, it will adjust about 97.05% within the first year. The full convergence process to reach the equilibrium level takes more than a year. Thus, this study will help the economists, policymakers and stakeholders of the garment sector of Bangladesh to predict the dynamics of export demand due to changes in world income level, relative price, real exchange rate and employment.

The Capital Structure as A Mediator Between Profitability and Company Size to Company Value in Textile And Garment Sector Companies Listed on The Indonesia Stock Exchange (IDX)

This study aimed to determine the effect of profitability and company size on company value with capital structure as an intervening variable in textile and garment sector companies listed on the Indonesia Stock Exchange (IDX) for 2018-2022. This research used a quantitative approach and secondary data from annual financial statements from www.idx.co.id. The population in this study was textile and garment sector companies listed on the Indonesia Stock Exchange (IDX) in the 2018-2022 period, with a population of 22 companies. Determining research samples used the purposive sampling method, and 18 companies with 90 data points were obtained as samples. Data analysis was performed using SEM-PLS version 3.0. The results of this study showed that profitability had a significant positive effect on capital structure. The size of the company had no impact on the capital structure. Profitability had a significant positive effect on the value of the company. The size of the company had no impact on the value of the company. Capital structure had a significant positive effect on the value of the company. Profitability had a significant positive impact on the value of the company with capital structure as an intervening variable; the size of the company did not affect the value of the company with capital structure as an intervening variable.

Worker empowerment in Bangladesh: The European initiative for the garment industry.

Empowering workers through operational safety committees and having an effective safety reporting mechanism improves occupational health and safety. The Western large retailers mostly from Europe formed the Accord on Fire and Building Safety in Bangladesh (Accord) in 2013 to advance occupational health and safety in the Bangladesh garment industry and one of its missions was to empower the workers. The objective of this study was to investigate the impact of Accord's programs on improving safety and quality of the working environment in the garment sector. All reports of Accord published and made available for the public were accessed and analyzed. Data were gathered and presented on 1) number of Safety Committees formed 2) Safety Training Programs conducted and 3) Safety and Health Complaints received. By 2021, a total of 1581 factories and 1.8 million workers were covered by Accord. By May, 2021, Accord formed Safety Committees and completed training sessions on these in 1022 factories (65% of the target). By 2020, the average number of total complaints received per factory was around two and the number of occupational health and safety (OSH) complaints -which was deemed to be dealt directly by Accord- was less than one per factory. The numbers of OSH complaints were less than two per 1000 workers and non-OSH complaints made up almost one third (25-35%) of all complaints during 2016 to 2019; however, in 2020 and 2021, non-OSH complaints constituted half (50%) of all complaints. Accord's worker empowerment mission could not form Safety Committees or deliver training sessions in all its factories and the number and relevance of complaints received appeared to be low given the number of factories and workers it covered.

An empirical assessment of consumer-brand engagement and brand knowledge through social media marketing activities: a study on online garments buyers

The use of social media marketing (SMM) use in the garment sector is increasing daily, and well-known brands are shifting their marketing campaign to social media. This study aims to assert the relationship between SMM customer- brand engagement (CBE) and brand knowledge (BK). For this purpose, data were collected from online garment buyers through a questionnaire. Results of the study show that SMM significantly enhances the CBE and BK. Results further elaborate that the CBE substantially mediates the relationship between SMM and BK. This study will bridge the gap in the literature between SMM and CBE. Moreover, this study will help the management of garment brands to shift their marketing campaign on social media to meet the requirements of modern marketing tools. Although this study only focuses on garments brands, future researchers can apply the model of this study to other brands and also enhance the sample size.

Impact of Quota Withdrawn on the Textile and Clothing Industry of Bangladesh

The textile and clothing industry plays a significant role in the economy of Bangladesh. It acts as a key player in the progress of the country. At present, the export performance of the readymade garment sector is more than 80% of total exports and hence makes up about 12% of the Gross Domestic Product (GDP) in Bangladesh. Thus, the country’s development largely depends on this sector which is considered the backbone of Bangladesh. As the quota system under the Multi-Fiber Agreement (MFA) phase greatly impacted the development process of the readymade garment sector in Bangladesh, many researchers disputed that after the abolition of the quota system, the growth of this sector might be hampered. Therefore, this study aims to find out the impact of quota withdrawal on the readymade garment (RMG) sector and, thereby, the roles of this sector to the economy of Bangladesh. For this purpose, the research has covered a period of twenty years as sample size, where ten years has been considered as the pre-MFA period and ten years as the post-MFA period. Being a quantitative study, comparative statements and descriptive statistics techniques have been used to determine the impact of quota withdrawal on the export performance of Bangladesh's textile and clothing sector. The evidence shows a smooth upward trend of textile and clothing exports towards the ten major countries in the world following the post-MFA period, and Bangladesh is registered as a significant export growth country following the withdrawal of MFA. Consequently, the arguments about the RMG sector concerning the textile and clothing industry that Bangladesh might not be able to compete in the global market during post-MFA periods proved wrong; thereby, this sector’s contribution to the economy is increasing progressively.

Application of revised theory of planned behavior model to assess the readiness of circular economy in the RMG sector of Bangladesh

This study aimed to investigate the readiness of the ready-made garments (RMG) sector in one of the developing countries to implement circular economy (CE) practices, which involve reusing, remanufacturing, and recycling materials and products to create a sustainable and resilient future. To achieve this goal, the study applied the revised theory of planned behavior model (RTPB) and analyzed the data using a structural equation modeling (SEM) approach. The study found that the basic elements of the TPB model, along with environmental commitment, green economic incentive, and firm maturity, can more effectively explain CE readiness than the original TPB model. The findings suggest that attitude, social pressure, green economic incentive, environmental commitment, and firm maturity significantly impact CE readiness. The results of this study have implications for policymakers in developing countries who seek to promote CE implementation in the RMG sector. By providing a unified framework to assess CE readiness, this study can help policymakers articulate strategic plans that prioritize environmental sustainability, economic benefits, and social responsibility. However, the study acknowledges that further research is needed to explore potential limitations and areas for improvement in this field.

Empowering workers’ involvement: Unveiling the dynamics of communication, recognition, productivity, and decision-making in the RMG sector

Purpose: This study investigates the relationship between workers' perspectives on communication, recognition, productivity, and their involvement in the Readymade Garment (RMG) sector policymaking. Research Methodology: A sample of 226 individuals from the RMG sector in Bangladesh was surveyed using a well-designed questionnaire. The data were examined, and the study's hypotheses were tested, using the statistical program SPSS V.25. In IBM SPSS, the chi-square test and other statistical techniques were used to examine the data. The study investigates the relationship between the independent variables, including communication, employee recognition, and productivity, and the dependent variable, worker perception, using a conceptual framework. Results: There is a positive and significant relationship between employees' perceptions of communication and their involvement in the decision-making process. The study also shows that there is a positive and significant association between workers' perceptions of employee recognition, productivity, and involvement in decision-making in Bangladesh's RMG industry. Additionally, the organization's decision-making process is significantly impacted by employee participation. Limitations: While many studies examined the workers’ participation in decision-making in the various sectors, only a few studies have focused on the RMG sectors to explore the effects of communication, employee recognition, and productivity on the workers’ participation in decision-making. Contributions: The study reveals that the organization’s total effectiveness is reflected in how deeply workers are involved in decision-making. The degree of involvement is a key determining element since encouraging people to engage instead of just dragging them along is essential for enhancing performance and ensuring commitment.

Constructivist analysis of cross-sectional data on varieties of skills: Contextualities and generalities of skills packages and rewards to them in Ghana and Ethiopia

Using cross-sectional data on the varieties of skills and employers’ demands for them, this paper examines determinants of wages in the garment sector in Ghana and Ethiopia. It found that the effects of cognitive and technical skills are consistent, while those of noncognitive and behavioral skills are important but in different ways depending on the culture, work environment, and employers’ expectations. Based on the empirical evidence from the survey using the author’s unique assessment data, she promotes a comparative, constructivist approach to skills analysis departing from conventional institutionalism, which considers school as the predominant site of skills development.