JBS Vol 24. Num 2. 2022. Article 1 - Addressing Labor Productivity for the Sustainability of the Garment Industry in Bangladesh

Bangladesh has emerged as a lower-middle income country and depends on its export earnings mainly from the ready-made garment (RMG) industry. However, one of the key challenges to the sustainability of this industry is its low labor productivity. This article addresses this problem and questions what factors contribute to lower labor productivity in Bangladesh's RMG industry. This research question has been investigated by conducting a management survey in which qualitative responses were analyzed. Based on the perceptions of senior management, the study finds that a combination of economic and social factors determines labor productivity in this industry. Although entrepreneurial strategy can control some of these factors, instruments such as offering incentives to workers, external factors such as education levels in the country, or the culture in the workplace cannot be influenced. This article contributes to the literature on sustainability challenges to entrepreneurship in the global supply chain, the upgradation by entrepreneurs in the global value chain, and the role of entrepreneurs in the development of the RMG sector in Bangladesh. Understanding the difficulties in producing a skilled workforce from the point of view of entrepreneurs may show the pathway for policymakers to deal with this challenge of sustainability.