Model of Achieving Operational Excellence by Using Information and Communication Technology in Readymade Garments: A Study on Bangladesh Market

Abstract

Bangladesh’s transformation from an agricultural to industrial nation has resulted in significant foreign exchange earnings from the export of ready-made garments (RMG). Any RMG firm’s main business operations are strongly associated with information and communication technology (ICT). But owners and managers are not quite ready to adapt all their activities from manual to automatic rather they found it costly. That’s why this paper makes an effort to examine, from a Bangladeshi viewpoint, the potential and importance of ICT applications in RMG, how they will impact operational excellence, and how operational excellence will drive RMG towards greater sustainability. A comprehensive data analysis of 347 samples was used to test the conceptual model followed by a literature and a set of hypotheses. Partial least squares structural equation modeling (PLS-SEM) has been utilized in the study to estimate the hierarchical model and investigate the relationships between the constructs. ICT is seen in the RMG industry as a vital sustainability tool rather than a way to obtain a competitive edge, according to data retrieved from study. In accordance to the results, implementing ICT in the RMG industry will be the best way for achieving operational excellence in almost all of RMG companies in Bangladesh.

Keywords:
Ready Made Garments, ICT, ICT Application, Operational Excellence, and Bangladesh.