Motivating Factors of Investors to Involve in Supply Chain Management Practices: A Study on Ready Made Garment Industry in Bangladesh 

Salma Akther¹, Al Mamun² 
(1. Faculty of Business and Economics, The University of Melbourne, Australia; 2. Bank Asia Limited, Bangladesh)

Abstract: The export-oriented clothing industry in Bangladesh, commonly known as ready made garment (RMG) occupies an inimitable position in the economy of Bangladesh. The aim of this study is to examine the intent of investors/manufacturers of Bangladeshi RMG to engage in supply chain management practices. Bangladeshi garment industry is the leading export earner as well as main sources of GDP (Gross Domestic Product) for Bangladesh over the decade. Development of the garment industry in Bangladesh was driven by the structural economic reforms of the 1980s, which opened the Bangladeshi economy towards foreign investment, deregulation of markets and privatization. Nowadays Bangladesh is well known across the globe for its vigorous success in the arena of readymade garment industry. On time deliverance, short lead time and desired quality product determines the criteria to gain the orders from international buyers. Thus, involve in supply chain management practices (SCMP) treated as compulsory requirement for these industries. To discover the absolute motive of RMG Investors/Manufacturers, the descriptive study was associated on 10 companies that are presently practiced SCM activities in Bangladesh. Standard questionnaires were utilized to accumulate the data. Research result showed 14 variables of Investor/Manufacturer motives are comprised in SCMP. Each variable was interconnected in nature. Four fundamental motivational factors stand as operational, economical, environmental & ethical, and social & behavioral. Shield motives of Investors/ Manufacturers can easily have recognized by these factors. This will assist the respective authority to control the RMG companies and acknowledged the forthcoming action steps to advance the supply chain management (SCM)system of this industry at Bangladesh. Rank order data interpretation represented that environmental motive and ethical motive are strong portent of Investor/Manufacturer motives to incorporate in Supply Chain Management practices.

Key words: supply chain management; motives of investor; supply chain management practices in Bangladesh

         JEL codes: L670