Environmental Dynamics in the Technology Adaptation of Digital Supply Chain for Bangladesh’s Readymade Garments Sector
Main Article Content
Abstract
The study aims to investigate the challenges of technology adoption in the Digital Supply Chain (DSC) of the Readymade Garment (RMG) business, focusing on environmental barriers. The study utilizes the T-O-E framework to examine a sample of 380 participants, consisting of owners and top managers from RMG facilities. The data is analyzed using PLS-SEM Modeling with the aid of SmartPLS4 software. It examines the complex interrelationships between competitive pressure, consumer, external support, stakeholder networks, environmental concerns, and technology adoption within the digital supply chain of the RMG industry. The technology adoption is substantially influenced by environmental conditions, particularly regarding the alignment with customers. The analysis of mediation sheds light on the significance of the environment in both partial and complete mediation, as it exerts influence on competitive pressures, customer involvement, external support, and stakeholder networks. Comprehending this interrelationship is crucial for making well-informed business and policy formulation decisions. organizations must incorporate environmental factors into their strategic decision-making processes, ensuring sustainable technologies are adopted. Policymakers can employ these findings to implement environmentally sustainable policies, promoting innovation within the RMG sector. These measures guarantee the long-term viability of the industry and promote ecological accountability.
Article Details
How to Cite
[1]
Z. H. Khan, M. M. Habib, and G. M. N. Islam, “Environmental Dynamics in the Technology Adaptation of Digital Supply Chain for Bangladesh’s Readymade Garments Sector”, AJSE, vol. 23, no. 1, pp. 54 - 63, Apr. 2024.
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AJSE contents are under the terms of the Creative Commons Attribution License. This permits anyone to copy, distribute, transmit and adapt the worknon-commercially provided the original work and source is appropriately cited.
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M. Gu, L. Yang and B. Huo, "The impact of information technology usage on supply chain resilience and performance: An ambidexterous view," International Journal of Production Economics, vol. 232, p. 1=13, 2021.
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S. Khatoon, X. Zhengliang and H. Hussain, "The Mediating Effect of Customer Satisfaction on the Relationship Between Electronic Banking Service Quality and Customer Purchase Intention: Evidence From the Qatar Banking Sector," SAGE Open, vol. 10, no. 2, pp. 1-12, 2020.
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L. Turulja and N. Bajgoric, "Innovation, firms’ performance and environmental turbulence: is there a moderator or mediator?," European Journal of Innovation Management, vol. 22, no. 1, pp. 213-232, 2019.
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[2]
G. M. Beal and J. M. Bohlen, The diffusion process,1956, pp. 111-121.
[3]
Apty, "Technology Adoption Explained," Apty, Austin,2020.
[4]
Z. Tasnim, M. A. Shareef, A. M. Baabdullah, A. B. A.Hamid and Y. K. Dwivedi, "An Empirical Study onFactors Impacting the Adoption of Digital Technologiesin Supply Chain Management and What BlockchainTechnology Could Do for the Manufacturing Sector ofBangladesh," Information Systems Management,, vol.40, no. 3, pp. 1-23, 2023.
[5]
M. R. Hassan, "Is Automated Supply Chain inBangladesh is Really Automated?," LinkedIn, 2022.
[6]
A. A. Khan, "PriyoShop is digitising supply chain forretailers in Bangladesh," Accelerating Asia, 2021.
[7]
M. R. I. Atik, M. A. Ahmed, M. S. A. Mashiyat and A.H.Rashid, "Sustainable Implementation of GreenSupply Chain Management in the RMG Sector ofBangladesh: A Literature Review," Dhaka, 2020.
[8]
C. L. Karmaker, R. A. Aziz, T. Ahmed, S. Misbauddinand M. A. Moktadir, "Impact of industry 4.0technologies on sustainable supply chain performance:The mediating role of green supply chain managementpractices and circular economy," Journal of CleanerProduction, vol. 419, 2023.
[9]
Q. Zhang, "Influence of Relationship between SupplyChain Members on Innovation Performance," OpenJournal of Social Sciences, vol. 2, pp. 167-172, 2014.
[10]
S. A. A. Khattab, A. H. Abu-Rumman and M. M.Massad, "The Impact of the Green Supply ChainManagement on Environmental-Based MarketingPerformance," Journal of Service Science andManagement, vol. 8, pp. 588-597, 2015.
[11]
A. Tian, "The Impact of Supply Chain CooperativeRelationship on Performance: A KnowledgeManagement Perspective," Journal of Service Scienceand Management, vol. 11, pp. 44-55, 2018.
[12]
X. Wang, V. Kumar, A. Kumari and E. Kuzmin,"Impact of Digital Technology on Supply ChainEfficiency in Manufacturing Industry," DigitalTransformation in Industry. Lecture Notes inInformation Systems and Organisation Springer. , vol.54, pp. 341-347, 2022.
[13]
B. M. Mohsen, "Impact of Artificial Intelligence onSupply Chain Management Performance," Journal ofService Science and Management, vol. 16, pp. 44-58,2023.
[14]
l. H. Kracklauer, D. Q. Mills, D. Seifert and M. Barz,"The Integration of Supply Chain Management andCustomer Relationship Management," CollaborativeCustomer Relationship Management. Springer, Berlin,Heidelberg., pp. 57-69, 2004.
[15]
Y. Wang, "Supply Chain Management and CustomerRelationship Management," The Palgrave Handbook ofSupply Chain Management, p. 1–27, 2022.
[16]
G. Kabra, A. Ramesh, V. Jain and P. Akhtar, "Barriersto information and digital technology adoption inhumanitarian supply chain management: a fuzzy AHPapproach.," Journal of Enterprise InformationManagement, vol. 36, no. 2, pp. 505-527., 2023.
[17]
L. G. Tornatzky and M. Fleischer, The processes oftechnological innovation, Washington DC: LexingtonBooks, 1990.
[18]
J. Baker, "The Technology–Organization–EnvironmentFramework," in Information Systems Theory:Explaining and Predicting Our Digital Society, 2012,pp. 231-245.
[19]
P. Lii and F.-I. Kuo, "Innovation-oriented supply chainintegration for combined competitiveness and firmperformance," International Journal of ProductionEconomics, vol. 174, pp. 142-155, 2016.
[20]
J. D. Bryan and T. Zuva, "A Review on TAM and TOEFramework Progression and How These ModelsIntegrate," dvances in Science, Technology andEngineering Systems Journal, vol. 6, no. 3, pp. 137-145,2021.
[21]
K. Buysse and A. Verbeke, "Proactive environmentalstrategies: a stakeholder management perspective,"Strategic Management Journal, vol. 24, no. 5, pp. 453-470, 2003.
[22]
Z. H. Khan, G. M. N. Islam and M. M. Habib, "Technology-Driven Supply Chain Management in Readymade Garments: A Literature Review," International Supply Chain Technology Journal, vol. 5, p. 9, 2023.
[23]
H. O. Awa, O. Ukoha and B. C. Emecheta, "Using T-O-E theoretical framework to study the adoption of ERP solution," Cogent Business & Management, vol. 3, no. 1, pp. 1-23, 2016.
[24]
M. Q. B. Muhamad, S. J. A. N. S. Mohamad and N. M. Nor, "Technological-Organisational-Environmental (TOE) Framework in Industry 4.0 Adoption Among SMEs in Malaysia: An Early Outlook," ASEAN Entrepreneurship Journal (AEJ), vol. 6, no. 3, pp. 13-19, 2021.
[25]
B.-N. Hwang, C.-Y. Huang and C.-H. Wu, "A TOE Approach to Establish a Green Supply Chain Adoption Decision Model in the Semiconductor Industry," Sustainability, vol. 8, no. 168, pp. 1-30, 2016.
[26]
M. Bhattacharya, "A Conceptual Framework of RFID Adoption in Retail Using TOE Framework," International Journal of Technology Diffusion, vol. 6, no. 1, pp. 1-32, 2015.
[27]
C. A. Geffen and S. Rothenberg, "Suppliers and environmental innovation: The automotive paint process," International Journal of Operations & Production Management, vol. 20, no. 2, pp. 66-186, 2000.
[28]
B. Haryanto, A. Gandhi and Y. G. Sucahyo, "The Determinant Factors in Utilizing Electronic Signature Using the TAM and TOE Framework," in 2020 Fifth International Conference on Informatics and Computing (ICIC), Gorontalo, 2020.
[29]
N. Al-Qirim, "The role of the government and E-Commerce adoption in small businesses in New Zealand," International Journal of Internet and Enterprise Management, vol. 4, no. 4, 2006.
[30]
I. Henriques and P. Sadorsky, "The Relationship Between Environmental Commitment and Managerial Perceptions of Stakeholder Importance," Academy of Management Journal, vol. 42, no. 1, 2017.
[31]
N. Zhao, J. Honga and K. H. Lau, "Impact of supply chain digitalization on supply chain resilience and performance: A multi-mediation model," International Journal of Production Economics, vol. 259, pp. 1-29, 2023.
[32]
M. Gu, L. Yang and B. Huo, "The impact of information technology usage on supply chain resilience and performance: An ambidexterous view," International Journal of Production Economics, vol. 232, p. 1=13, 2021.
[33]
A. Abdulkarem and W. Hou, "The Influence of the Environment on Cross-Border E-Commerce Adoption Levels Among SMEs in China: The Mediating Role of Organizational Context," Sage Open, vol. 12, no. 2, 2022.
[34]
A. Hussain, A. Shahzad and R. Hassan, "Organizational and Environmental Factors with the Mediating Role of E-Commerce and SME Performance," Journal of Open Innovation: Technology, Market, and Complexity, vol. 6, no. 4, 2020.
[35]
S. Khatoon, X. Zhengliang and H. Hussain, "The Mediating Effect of Customer Satisfaction on the Relationship Between Electronic Banking Service Quality and Customer Purchase Intention: Evidence From the Qatar Banking Sector," SAGE Open, vol. 10, no. 2, pp. 1-12, 2020.
[36]
H. Cuevas-Vargas, N. Parga-Montoyab and R. Fernández-Escobedo, "The adoption of ICT as an enabler of frugal innovation to achieve," in The 8th International Conference on Information Technology and Quantitative Management, Beijing, 2022.
[37]
L. Turulja and N. Bajgoric, "Innovation, firms’ performance and environmental turbulence: is there a moderator or mediator?," European Journal of Innovation Management, vol. 22, no. 1, pp. 213-232, 2019.
[38]
S. Chatterjee, R. Chaudhuri, S. Kamble, S. Gupta and U. Sivarajah, "Adoption of Artificial Intelligence and Cutting‐Edge Technologies," Information Systems Frontiers, vol. 25, p. 1779–1794, 2023.
[39]
J. Sarkis, P. Gonzalez-Torre and B. Adenso-Diaz, "Stakeholder pressure and the adoption of environmental practices: The mediating effect of training," Journal of Operations Management, vol. 28, p. 163–176, 2010.
[40]
BGMEA, "General Members List," 2023. [Online]. Available: https://www.bgmea.com.bd/page/member-list. [Accessed 10 October 2023].
[41]
BKMEA, "Bangladesh Knitwear Manufacturers and Exporters Association," 2023. [Online]. Available: https://www.bkmea.com/bkmea-members/. [Accessed 10 October 2023].
[42]
M. F. Wiersema and K. A. Bantel, "Top Management Team Demography and Corporate Strategic Change," Academy of Management Journal, vol. 35, no. 1, pp. 91-121, 1992.
[43]
W. G. Cochran, Sampling techniques, 3rd ed., New York: John Wiley & Sons, 1977.
[44]
MiB, "Mapped in Bangladesh," 2022. [Online]. Available: https://map.rmg.org.bd.
[45]
J. F. Hair, G. T. M. Hult, C. M. Ringle and M. Sarstedt, A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM), 3rd ed., Los Angeles: Sage Publications, Inc, 2022.
[46]
R. P. Bagozzi, C. Fornell and D. F. Larcker, "Canonical Correlation Analysis As A Special Case Of A Structural Relations Model," Multivariate Behavioral Research, vol. 16, no. 4, pp. 437-454, 1981.