Impact of Leagile Manufacturing System on Industrial Up-Gradation of Apparel Industry of Bangladesh

Shah Moahmmad Tanvir Monsur and Takahashi Yoshi

International Journal of Asian Social Science, 2012, vol. 2, issue 10, 1698-1717

Abstract: In the manufacturing step of the global apparel value chain (GAVC) the firms face fierce competition due to availability of low cost labor and hence the opportunity to make higher profit is a tough job. A good strategy to overcome this problem is industrial up-gradation through value chain. Resource based view can be an important logic to advocate that leagile (lean and agile) manufacturing system can be an unique resource for the firm and can facilitate a firm for doing that up-gradation. This study has done a survey on 180 apparel firms in Bangladesh and by using structural equation modeling it found that human resource aspect of leagile manufacturing system positively influences production aspect of leagile manufacturing system and production aspect of leagile manufacturing system positively influences on industrial up-gradation and eventually on firm performance. The construct of production aspect of leagile manufacturing system shows that the variables responsible for producing fashionable products are influencing industrial up-gradation. But some of the characteristics of leagile manufacturing are not having impact on industrial up-gradation in an unidirectional way. Therefore, the study concludes that although all the characteristics of leagile system are not uni-directionally influencing on industrial up-gradation, leagile system even if it is fractional, is positively influencing on industrial up-gradation.

Keywords: Industrial up-gradation; Leagile; Resource based view; Value chain; vertical integration. (search for similar items in EconPapers)
Date: 2012
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