LMRPID-397442
Page 63
5th March 2023
Evaluating the Impact of Digital Transformation on the Export Competitiveness of Bangladesh's Garment Industry
Researcher- MEHEDI HASAN | LGMID-27199320190101750
Reviewed by:
1. Dr. Anthony
2. DH Sakib
3. Taskin Karim
Paper preview
1. Abstract
2. Introduction
3. Literature Review
4. Methodology
5. Findings
6. Conclusion
7. References
Abstract
The past few decades have seen a significant upheaval in the worldwide textile and apparel sector, driven by the emergence of fast fashion, shifting customer preferences, and the widespread influence of digital technology. This thesis investigates the effects of digital transformation on Bangladesh’s garment industry’s export competitiveness, a sector that is essential to the nation’s economy and global trade. Bangladesh’s garment industry has long been a labor-intensive one, mainly depending on inexpensive manual labor to supply the world’s expanding demand for apparel. The industry has, however, had to contend with several difficulties, including escalating competition from other centers of low-cost manufacturing and the requirement for more productivity, sustainability, and innovation. In light of this, digital transformation has shown promise as a means of boosting Bangladesh’s apparel industry’s competitiveness. To assess the effects of digital transformation, this thesis takes a multifaceted approach that considers both technological and non-technological factors. It investigates how the sector utilizes a range of digital technologies, including e-commerce, data analytics, automation, and the Internet of Things (IoT). It also explores the organizational and management adjustments that come with digital transformation, such as reorganizing the supply chain, upskilling the workforce, and incorporating digital initiatives into daily operations. The study employs quantitative and qualitative methodologies to investigate how digital transformation has impacted several aspects of export competitiveness within the Bangladeshi apparel sector. Data is gathered from various sources, such as government representatives, labor unions, factory owners, and international consumers. Cost-cutting, improved product quality, production efficiency, sustainability, market accessibility, and general business resilience are all included in the analysis. The results indicate that there have been a number of noteworthy results from the digital revolution. First off, by automating labor-intensive procedures it has improved cost efficiency, which has decreased manufacturing costs and raised price competitiveness in global markets. Second, since automation reduces errors and boosts consistency in the clothing manufacturing process, digital technology has improved the quality of the final product. Thirdly, by offering real-time data and visibility, digital transformation has improved supply chain management. This has led to shorter lead times and improved response to market demands. Another critical area where digital transformation has advanced is sustainability. The sector has been able to lessen its environmental impact and satisfy the increasing demand for sustainable products in international markets by implementing eco-friendly practices that are driven by data and digital tools. This fits nicely with the global trend towards ethical and sustainable consumption. Additionally, the digital transformation has made it possible for manufacturers in Bangladesh to reach a larger audience of international buyers by enabling e-commerce platforms and online marketplaces. A more direct relationship between producers and consumers has been made possible by digital marketing and online sales platforms, which lessen the need for middlemen and present chances for brand development. The path of transformation is not without difficulties, though. In order to fully reap the benefits of digital technologies, the thesis highlights concerns about digital literacy and the digital gap among workers. In addition, the quick speed at which technology is changing demands constant adaptation and human capital investment. The thesis concludes by showing how the digital transformation significantly and favorably affects Bangladesh’s garment industry’s export competitiveness. The implementation of digital technology and the corresponding modifications to organizations have improved market accessibility, sustainability, supply chain management, product quality, and cost efficiency. Policymakers, industry stakeholders, and business leaders can benefit from the research’s findings regarding the potential of digital transformation to boost the competitiveness of Bangladesh’s garment industry and that of other emerging economies. The significance of digital transformation in promoting success and sustainability is becoming more and more apparent as the global apparel industry develops.
References
Hayes, J. (2020). Digital transformation and its impact on global supply chains: A comprehensive review. International Journal of Logistics Management, 31(1), 191-223.
Rahman, M. A., & Ali, M. M. (2019). The role of e-commerce in enhancing the export competitiveness of the Bangladeshi garment industry. Journal of International Business Research, 18(3), 323-340.
Chen, Y., & Wang, Q. (2018). The impact of Industry 4.0 on sustainability of the textile and apparel industry. Journal of Textile Science & Fashion Technology, 3(2), 1-3.
World Bank. (2019). Bangladesh Economic Update: Towards Regulatory Predictability (No. 13). World Bank.
Ali, S. S., & Aalst, W. M. P. (2019). Digital transformation in organizations: A structuration theory analysis. Information Systems Frontiers, 21(4), 755-776.
Ashik, A., & Bari, M. (2018). The role of e-commerce and digital technology in enhancing the competitiveness of Bangladesh’s RMG industry. Global Business and Economics Review, 20(1), 15-33.
Hossain, M., & Ali, M. (2019). Leveraging digital transformation for sustainability: A study of Bangladesh’s textile and apparel industry. Journal of Sustainability, 11(2), 1-19.
WTO (World Trade Organization). (2020). World Trade Statistical Review 2020. World Trade Organization.
Arshed, N., & Safi, S. (2017). Digital technology and its implications for Bangladesh’s RMG sector. Journal of Business & Economic Policy, 4(3), 53-71.
Government of Bangladesh. (2021). Bangladesh Economic Review 2021. Ministry of Finance, Government of Bangladesh.
Lee, J., Kao, H. A., & Yang, S. (2014). Service innovation and smart analytics for Industry 4.0 and big data environment. Procedia CIRP, 16, 3-8.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA). (2021). BGMEA Annual Report 2020-2021. BGMEA.
Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming competition. Harvard Business Review, 92(11), 64-88.
Akter, S., & Wamba, S. F. (2016). Big data and the internet of things: A research agenda. Journal of Business Research, 70, 165-174.
Hasan, M. (2020). Digital transformation and the future of work in Bangladesh’s ready-made garment sector. In Proceedings of the 53rd Hawaii International Conference on System Sciences (HICSS) (pp. 5296-5305).
Keywords
Digital Transformation, Export Competitiveness, Bangladesh Garment Industry, Textile Industry, Technology Adoption, Sustainability, Supply Chain Management, Market Access, Labor Intensive, Organizational Change, Cost Efficiency
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