Chowdhury 2020
Chowdhury 2020
https://www.emerald.com/insight/1463-7154.htm
supply chain
Nighat Afroz Chowdhury and Syed Mithun Ali
Department of Industrial and Production Engineering,
Bangladesh University of Engineering and Technology, Dhaka, Bangladesh Received 9 August 2019
Revised 20 November 2019
Sanjoy Kumar Paul Accepted 14 February 2020
Abstract
Purpose – Supply chain management plays an important role in sustaining businesses in today’s competitive
environment. Therefore, industrial managers are focusing on exploring the key performance improvement
attributes of supply chain management to achieve a better position in the global market. Aimed at ensuring
best supply chain management practices, this study presents the key performance improvement attributes,
known as critical success factors (CSFs), within the context of the apparel supply chain of Bangladesh.
Design/methodology/approach – In this paper, the interpretive structural modeling method (ISM) has been
applied to develop a structural framework to analyze the contextual relationship among the factors under
consideration. MICMAC (Matriced’ Impacts Croises Multiplication Appliquee aunClassement) analysis has
also been performed to define the classification of the CSFs in terms of their driving and dependence power.
Findings – The research findings reveal that supply chain collaboration/partnership and customer
satisfaction are of crucial importance to success in the context of supply chain management of the readymade
(RMG) garments industry of Bangladesh. Further evidence suggests that these, along with other success
factors, can assist in achieving a competitive advantage and better market position. A number of theoretical
and managerial implications have been provided for managers and practitioners, and for further evaluation of
the study.
Originality/value – This paper considers a new supply chain problem which identifies and evaluates critical
success factors. This paper also develops a new structural model for evaluating critical success factors.
Keywords Supply chain management, Critical success factors, Interpretive structural modeling, Readymade
garments industry, Decision support
Paper type Research paper
1. Introduction
Over the last few decades, the business environment has become more dynamic and volatile
in nature due to globalization, technological change, and increased customer demand (Ali
et al., 2017). Supply chain management (SCM) has proven to be an important tool in
overcoming this situation and gaining a competitive advantage. Therefore, in recent years
many academicians and industry practitioners have taken a lot of interest in the successful
implementation of the SCM concept (Chowdhury et al., 2019). Since garments and textiles is,
Business Process Management
This research was supported by BUET CASR under grant number DAERS/CASR/R-01/2017/DR-2280 Journal
(50). The authors would like to show our gratitude to all the academicians and industry experts who © Emerald Publishing Limited
1463-7154
assisted in conducting this research by providing valuable insight and expertise. DOI 10.1108/BPMJ-08-2019-0323
BPMJ without doubt, one of the largest industries, this sector is also focusing on the proper adoption
of supply chain practices (Bruce et al., 2004). Hence, this research is based upon the
readymade garments (RMG) industry of Bangladesh, which is a fast-growing industry. As
the second largest apparel exporter and biggest foreign exchange sector, the garments
industry of Bangladesh is facing a lot of challenges in maintaining its position within the
global market (Mostafa and Klepper, 2017). As a result, there is increasing pressure on
managers to emphasize social, environmental, and economic factors at all levels of SCM
(Luthra et al., 2014).
A supply chain includes all movements, activities, storage of raw materials, work-in-
process, and finished goods, from order placing to order receiving (Lambert and Cooper,
2000). If one element of the supply chain fails, the entire supply chain comes to a standstill.
Whilst SCM is a well-established practice all around the world, it is yet to be popularized in
Bangladesh. Recent incidents involving Rana Plaza and Tazrin Fashion have also raised a
question of compliance to fulfill customer demand (Jacobs and Singhal, 2017). To maintain its
consistent reputation in the global market, the apparel sector of Bangladesh must therefore
learn to adopt effective SCM practices. There are some significant critical success factors
(CSF) that, if improved upon, will certainly help in achieving optimal efficiency in SCM.
SCM practices and CSFs have been studied by a number of researchers like (Aschemann-
Witzel et al., 2017; Luthra et al., 2015a; Raut et al., 2017). Most of them have focused on simply
identifying the CSFs from the perspective of SCM. Others have emphasized the literature
review or devoted their attention to specific industries. However, most of them have failed to
analyze the contextual relationship or degree of influence factors may have on one another.
This research study therefore deals with this gap by addressing the hierarchical relationships
among CSFs and developing a structural framework for the issue under consideration.
In this research, the interpretive structural modeling (ISM) method has been applied to
identify the structural relationship among the CSFs. ISM is a widely used and well-
established strategy for checking interdependency among various factors in a defined
system. This methodology was used here to determine the driving and dependence power of
the CSFs. Along with ISM, MICMAC (Matriced’ Impacts Croise’s Multiplication Appliquee a
UN Classement) analysis was also performed to classify the CSFs into four categories,
addressing the following research questions:
RQ1. What are the CSFs for managing apparel supply chains in developing countries like
Bangladesh?
RQ2. What are the interactions among the CSFs for a real-world industrial case?
RQ3. What are the future implications for managers to improve overall apparel supply
chain performance?
The rest of the paper is organized as follows. Section 2 provides the literature review on SCM
management practices, CSFs and different methodologies used. Section 3 discusses the
detailed research methodology. Data analysis from a real-life case is described in Section 4
and the results and findings of this research are presented in Section 5. Section 6 provides
suggestions for future research and managerial implications. The final section includes a
brief conclusion for the study.
2. Literature review
2.1 Context of supply chain management practice
Christopher (2000) represented SCM as a network of interconnected organizations that focus
on the smooth flow of resources and information along different stages of product
development, from suppliers to customers. According to Seuring and M€ uller (2008), the
effectiveness of SCM lies in the successful integration of sustainability for improved customer Success factors
service and in the firm’s operational efficiencies. At present, the scope of the supply chain has in apparel
become so widespread that its pattern changes with different product demands (Hugos,
2018). For example, the demand requirement and operational challenges of the electronics
supply chain
supply chain is different from the apparel supply chain. Despite having different
requirements, some aspects remain similar in every supply chain, such as balancing
demand and supply, coordinating logistics transportation, determining facility location,
inventory management, information management etc. (Christopher, 2016).
Since the market competition has become more intense due to the changing business
environment, the researchers and practitioners of SCM are trying to explore different ways to
improve supply chain efficiency. Over the last two decades, several articles have been
published in different journals regarding the theory, practice, and future scope of SCM.
However, this topic is still under continuous scrutiny and considerable development. Firms
are trying to implement the idea of lean management to achieve a desirable result along with
competitive advantage (Martınez-Jurado and Moyano-Fuentes, 2014). The concept of SCM
has also extended to sustainability, suggesting that firms must incorporate sustainability
into their SCM model because of increased public concern surrounding environmental issues
(Beske et al., 2014). To address sustainability issues and challenges, firms are developing
effective techniques and strategies in an attempt to increase their corporate reputation and
profit margin (Touboulic and Walker, 2015). Recently, many academic and corporate
interests have focused on the integration of a supply chain and triple bottom line (TBL)
approach which addresses the social, environmental, and financial attributes related to SCM
(Lim et al., 2017; Mota et al., 2018). However, other aspects still need to be explored to adopt
dynamism in practice and ensure long-term success in market competition. Mothilal et al.
(2012) linked several attributes to third-party logistics (3PL) to identify a firm’s performance
implications in terms of financial measures. A recent focus on domain-specific research has
clarified that it is necessary to analyze each sector separately and identify business
opportunities according to changing market conditions (Venkatesh et al., 2015). Geological
preferences have also been highlighted in many studies since criteria for the efficient practice
of SCM also depends on demographic conditions and its associated opportunities (Tate et al.,
2010). Hence, this study serves to incorporate these aspects into its field of research with a
goal to identify several factors of SCM practices from the perspective of the apparel industry
of Bangladesh.
13 Technology utilization The appropriate usage of existing Kumar et al. (2015); Vijayasarathy
technology and adoption of new (2010)
technology ensures agility in SCM
14 Supply chain risk Identifying the risks and developing Ho et al. (2015); Rajesh and Ravi
management strategies to mitigate them is a helpful (2015); Schmitt and Singh (2012)
tool to make the supply chain resilient
15 Workplace health and Improved working conditions, and the Alsamawi et al. (2017); Hobson
safety management practice of health and safety (2013); Jacobs and Singhal (2017)
measurements can reduce the intensity
of industrial accidents and losses
16 Environmental Implementing the concept of Rajala et al. (2016); Rajeev et al.
sustainability sustainability in a firm’s business (2017)
model can decrease environmental
pollution and public concern
17 Customer satisfaction Proper delivery system and better Chavez et al. (2016); Heikkil€a (2002);
management of quality and material Kumar et al. (2014)
flow can help in achieving customer
satisfaction and loyalty
18 Government support Governmental support and Cai et al. (2010); Raut et al. (2017);
and legislation intervention, and their policies and Zhu et al. (2013)
regulations have an impact on the
successful implementation of SCM
practices
19 Organizational policies Application of organizational culture Cao et al. (2015); Sarkis et al. (2011)
and policies at all levels ensures supply
chain integration and better
performance of firm
20 Market competency Supply chain strategies should be Arora et al., 2016; Derwik and
developed to handle pressure from Hellstr€om (2017)
competitors, market turbulence, and
Table 2. variation in market demand
Aschemann-Witzel To offer valuable key success factors to reduce food Multiple case study approach
et al. (2017) waste
Luthra et al. (2016) To analyze the impacts of CSFs in implementing Data analysis techniques,
green SCM towards sustainability multiple regression analysis
Luthra et al. (2014) To determine the interrelationships among CSFs and Interpretive ranking process
to rank them in terms of performance measurement (IRP) modeling approach
criteria
Grimm et al. (2014) To investigate CSFs for successful sub-supplier Field study research
Table 3. management in sustainable SCM approach
Methodologies used in Wittstruck and To identify and describe the CSFs for successful Systematic literature review
some articles Teuteberg (2012) sustainable SCM
electronics industry with the help of ISM. Yadav and Barve (2015) implemented this
methodology to identify interrelationships among CSFs in the humanitarian supply chain.
Purohit et al. (2016) deduced the interdependencies among enablers of mass customization in
the footwear industry using this technique. Darbari et al. (2018) applied ISM to find
interaction among barriers to sustainability in the Indian food supply chain. Considering its
huge success and popularity in different domains, it seems appropriate to employ this Success factors
methodology in this study. in apparel
supply chain
3. Research methodologies
In this section, the current situation of the RMG industry of Bangladesh is illustrated.
Secondly, the ISM technique and its associated steps are discussed briefly. This method has
been applied to the problem context in order to find relevant CSFs and establish a structural
model depicting their hierarchical relationship. Finally, MICMAC analysis was performed to
classify the CSFs based on their interdependencies.
Necessary modification
Development of reachability matrix
Yes
Is there any conceptual
inconsistency?
Figure 1.
Flow diagram for ISM-
based framework No
development Representation of relationships among factors
If the value of (i, j) cell in the SSIM matrix is V, then the value of corresponding (i, j) cell Success factors
becomes 1 and (j, i) cell becomes 0 in apparel
If the value of (i, j) cell in the SSIM matrix is A, then the value of corresponding (i, j) cell supply chain
becomes 0 and (j, i) cell becomes 1
If the value of (i, j) cell in the SSIM matrix is X, then the value of corresponding (i, j) cell
and (j, i) cell both become 1
If the value of (i, j) cell in the SSIM matrix is O, then the value of corresponding (i, j) cell
and (j, i) cell both become 0
This initial reachability matrix is then checked for transitivity. Checking the transitivity of
the contextual relationship is a basic assumption of ISM. According to the transitivity rule, if
attribute i is related to j and j is related to k, then i is necessarily related to j. Hence, if an (i, j)
entry fulfills this criteria, then the value of (i, j) entry becomes 1. After checking all the entries
of the initial reachability matrix and making the necessary modifications, the initial
reachability matrix is converted to a final reachability matrix. The reachability matrix also
reveals the driving and dependence power of the variables. The driving power of a particular
factor is achieved by aggregating all the numbers of factors that it may impact and the
dependence power of a particular factor is achieved by aggregating all the numbers of factors
by which it is influenced.
Step 4: The final reachability matrix (obtained from step 3) is used to perform level
partitioning of the variables. This is done by determining the reachability set and
antecedent set found through the reachability matrix. The reachability set of a particular
variable consists of the variables that it may influence, including itself. On the other hand,
the antecedent set of a particular variable comprises of the variable itself and all the
variables that may influence it. Afterwards, another set, called the intersections set, is
constructed from the reachability set and antecedent set. The intersection set contains the
elements that follow the overlapping criteria—in other words, elements common to both
the reachability set and antecedent set. The attribute that has a similar reachability set
and intersection set is labeled “top level attributes”. After identifying the top level factor, it
is removed from the other reachability, antecedent, and intersection sets. The same
procedure is repeated until all the levels of variables are identified. This iterative level
partitioning is associated with building the hierarchical ISM model.
Step 5: This step involves developing a reachability matrix considering the levels of all of
the elements. This helps to organize the variables according to their driving and
dependence power. This form is called a conical matrix.
Step 6: In this final step, the ISM model is constructed according to the levels and
reachability matrix without considering the transitivity.
4. Data analysis
4.1 Identification of CSFs in RMG sector of Bangladesh
The success factors derived from the literature review (illustrated in Table 2) are short-listed
by collecting the views and opinions of experts from academic and industry backgrounds
with significant experience in the apparel industry. A total of 8 experts from academia and
readymade garments industry were chosen as the respondents of this research. A brief profile
of experts is given in Table 4. They were given the list of success factors collected from the
literature and were asked to select the most critical ones. The 12 factors that got the most
scores were shortlisted for further analysis. However, the names of the respondents will not
BPMJ be revealed in this paper to maintain confidentiality. To maintain the originality of this
research, interaction among the experts was avoided during the brainstorming session. They
analyzed the CSFs from Table 2 and selected the 12 most important CSFs from the
perspective of supply chains of the apparel sector in Bangladesh. A summary of their
opinions is given in the appendix (see Table A1) and the list of the 12 most relevant CSFs is
given in Table 5.
Type of Years of
Expert Company organization Designation experience
(F1). Hence, notation A was used to denote their relationship with F1. As for supply chain
collaboration/partnership (F4), it has mutual relationship with F1, shown by the notation X.
And finally, top management support and commitment (F1) and sales forecast (F3) do not
affect each other. Thus, their relationship is indicated through the use of the symbol O.
Workplace
Quality Sales Resource Strategic and health and
III manageme forecast managem manufacturing safety
nt (F2) (F3) ent (F6) flexibility (F7) management
(F10)
IV
Continuous improvement (F8)
V
Human resource management (F5)
VI
Top management support and commitment (F1)
Figure 2.
VII Government support and legislation (F12) Proposed ISM model
legislation (F12) because the government can affect the activities of SCM by making decisions
that affect pricing strategies, the cost of production, and coordination between supply–
demand etc. through the application of taxes, subsidies, rules, and policies. Therefore, it can
influence top management support and commitment (F1) because managers must
incorporate these rules and regulations into their system to harvest maximum profit. The
management personnel are also responsible for human resource management (F5), which
plays an important role in the successful implementation of SCM practices. The managers
must work on their communication method with their employees through top-bottom and
bottom-up approaches to develop a culture of mutual trust. Moreover, they should provide
their employees with the necessary training and guidance to improve their skills, along with
proper rewards in order to motivate them. By doing so, the organization can help its
employees to adopt the concept of continuous improvement (F8) into their practice.
Encouraging employee involvement and introducing teams to the notion of six sigma, lean
management, total quality management (TQM), and plan-do-check-act (PDCA) can decrease
their product cycle time, lead time, and defect rates.
According to the ISM model, continuous improvement can also affect quality management
(F2), resource management (F6), and strategic and manufacturing flexibility (F7) where
resource management and flexibility have a mutual relationship with one another. The
practice of continual development results in a better-quality product, smooth flow of material
and resources, and minimization of waste by incorporating the market changes into the
production system. Apart from these, continuous improvement can also have an impact on
BPMJ 13
Quadrant D High Quadrant C
12 dependence
power F1 F4
11 F11
F12 F8
10 F2
F5 F3
F6
9
F7
F10
Dependence power
2
Low
1 Quadrant A dependence Quadrant B
Figure 3. power
Driving and 0
dependence power of 0 1 2 3 4 5 6 7 8 9 10 11 12 13
success factors Driving power
workplace health and safety management (F10). That means the risks of industrial accidents
and other workplace related hazards can be avoided through careful consideration in
incremental improvement. In addition, resource management (F6) is influenced by the sales
forecast (F3), which is associated with forecasting the customer demand accurately in order to
make effective use of available resources and increase profitability by avoiding opportunity
costs. Furthermore, by improving the factors previously discussed, managers can reduce the
risks involved in SCM. For example, incorporating flexibility in the overall SCM can maintain
agility in terms of productivity, responsiveness, and customer satisfaction. As a fast-growing
industry, it is essential for managers to identify the risks involved in SCM and diffuse them
through proper evaluation of the risks. With efficient management of the SCM risks,
customer satisfaction (F11)—the ultimate goal of any firm—can be achieved. Therefore,
customer satisfaction has been assigned to the ISM model as a top-level performance
improvement criterion along with supply chain collaboration/partnership (F4). Collaboration
creates an environment of trust, reliability, and transparency—not only for the suppliers,
manufacturers, and retailers but also for the customers. Hence, partnership among the
drivers of the supply chain also reduces the supply chain risks that are faced at all levels of
the supply chain.
In addition, the MICMAC analysis provided valuable insights regarding the degree of
dependency the CSFs have on one another. From this analysis we classified the factors into
four sectors to analyze their strengths and weaknesses from the perspective of the apparel
industry. The absence of autonomous variables indicates that the managers do not need to
consider any factors separately from the perspective of the garments industry of Bangladesh.
We found supply chain risk management (F9) to be the independent variable with high Success factors
driving power and low dependency power, which implies that managers must focus on this in apparel
factor to ensure success in SCM. Top management support and commitment (F1), quality
management (F2), sales forecast (F3), supply chain collaboration/partnership (F4), resource
supply chain
management (F6), strategic and manufacturing flexibility (F7), workplace health and safety
management (F10), and customer satisfaction (F11) are identified as linkage barriers to which
managers must pay close attention due to their high driving and dependence power. And
finally, human resource management (F5), continuous improvement (F8), and government
support and legislation (F12) are found to be dependent variables. These factors are highly
dependent on other linkage and independent variables. Therefore, managers must find the
driving factors to properly handle these factors.
The findings of this study differ significantly from previous studies of critical success
factors in other types of industries. In this study, government support and legislation is found
to be the most critical success factor. This factor is absent in the study done by Haleem et al.
(2012) and Kumar et al. (2015) but ranked second in Luthra et al. (2015). Top management
support and commitment ranked second in this study, while it was ranked third in elsewhere
(Haleem et al., 2012). However, top management support was the most critical CSF in small
and medium-sized enterprises (SMEs) (Kumar et al., 2015) and for implementing green supply
chains in the Indian automobile industry (Luthra et al., 2015b). Like Haleem et al. (2012),
continuous improvement is ranked fourth in this study. Surprisingly, workplace health and
safety ranked last in Haleem et al. (2012), but it has been placed in level III of the ISM model in
this study.
Although some success factors like top management commitment and support,
government legislation are in line with previous studies, most of the factors are new in
this paper. This means that critical success factors are highly industry and geography
specific, and the factors that are critical for the readymade garment industry in Bangladesh
may not be critical factors for other industries in other countries.
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Deputy Operational Executive Executive
Managing general process (production (supply chain Team leader
CSF Academician Chairman director manager manager planning) management) (merchandizing)
(continued )
in apparel
Success factors
supply chain
Summary of expert
feedback
Table A1.
BPMJ
Table A1.
Deputy Operational Executive Executive
Managing general process (production (supply chain Team leader
CSF Academician Chairman director manager manager planning) management) (merchandizing)
Workplace health U U U U
and safety
management
Environmental U U
sustainability
Customer U U U U U U U U
satisfaction
Government U U U U U U
support and
legislation
Organizational U U U
policies
Market competency U U U
CSF 1 2 3 4 5 6 7 8 9 10 11 12
Success factors
in apparel
F1 Top management support and commitment 1 1 0 1 1 1 1 1 1 1 0 0 supply chain
F2 Quality management 0 1 0 1 0 1 0 0 1 0 1 0
F3 Sales forecast 0 0 1 1 0 1 0 0 1 1 0 0
F4 Supply chain collaboration/partnership 1 1 1 1 0 1 1 0 1 0 1 0
F5 Human resource management 0 1 0 0 1 1 0 1 0 1 0 0
F6 Resource management 0 1 0 0 0 1 1 0 1 1 1 0
F7 Strategic and manufacturing flexibility 0 0 1 1 0 1 1 0 1 0 1 0
F8 Continuous improvement 0 1 0 1 0 1 1 1 1 1 0 0
F9 Supply chain risk management 0 0 0 0 0 0 0 0 1 0 1 0
F10 Workplace health and safety management 0 0 0 1 0 0 0 0 0 1 0 0 Table A2.
F11 Customer satisfaction 1 0 1 1 0 0 0 0 0 0 1 0 Initial reachability
F12 Government support and legislation 1 0 0 0 1 0 0 0 0 1 0 1 matrix
Driving
CSF 1 2 3 4 5 6 7 8 9 10 11 12 power
F1 Top management 1 1 1* 1 1 1 1 1 1 1 1* 0 11
support and
commitment
F2 Quality management 1* 1 1* 1 0 1 1* 0 1 1* 1 0 9
F3 Sales forecast 1* 1* 1 1 0 1 1* 0 1 1 1* 0 9
F4 Supply chain 1 1 1 1 1* 1 1 1* 1 1* 1 0 11
collaboration/
partnership
F5 Human resource 0 1 0 1* 1 1 1* 1 1* 1 1* 0 9
management
F6 Resource 1* 1 1* 1* 0 1 1 0 1 1 1 0 9
management
F7 Strategic and 1* 1* 1 1 0 1 1 0 1 1* 1 0 9
manufacturing
flexibility
F8 Continuous 1* 1 1* 1 0 1 1 1 1 1 1* 0 10
improvement
F9 Supply chain risk 1* 0 1* 1* 0 0 0 0 1 0 1 0 5
management
F10 Workplace health 1* 1* 1* 1* 0 1* 1* 0 1* 1 1* 0 9
and safety
management
F11 Customer 1 1* 1 1 1* 1* 1* 1* 1* 1* 1 0 11
satisfaction
F12 Government support 1 1* 0 1* 1 1* 1* 1* 1* 1 0 1 10 Table A3.
and legislation Final reachability
Dependence power 11 11 10 12 5 11 11 6 12 11 11 1 matrix
BPMJ CSF Reachability set Antecedent set Intersection set Level
F1 1,5 1,12 1
F5 5 1,5,12 5 V Table A8.
F12 1,5,12 12 12 Level V of ISM
F4 Supply chain 1 1 1 1 1 1 1 1* 1* 1* 1 0 11
collaboration/
partnership
F11 Customer 1 1 1* 1* 1 1* 1* 1* 1* 1* 1 0 11
satisfaction
F9 Supply chain risk 1* 1 1 0 1* 0 0 0 0 0 1* 0 5
management
F2 Quality management 1 1 1 1 1* 1 1* 1* 0 0 1* 0 9
F3 Sales forecast 1 1* 1 1* 1 1 1* 1 0 0 1* 0 9
F6 Resource 1* 1 1 1 1* 1 1 1 0 0 1* 0 9
management
F7 Strategic and 1 1 1 1* 1 1 1 1* 0 0 1* 0 9
manufacturing
flexibility
F10 Workplace health 1* 1* 1* 1* 1* 1* 1* 1 0 0 1* 0 9
and safety
management
F8 Continuous 1 1* 1 1 1* 1 1 1 1 0 1* 0 10
improvement
F5 Human resource 1* 1* 1* 1 0 1 1* 1 1 1 0 0 9
management
F1 Top management 1 1* 1 1 1* 1 1 1 1 1 1 0 11
support and
Table A12. commitment
Conical matrix F12 Government support 1* 0 1* 1* 0 1* 1* 1 1* 1 1 1 10
(considering and legislation
transitivity) Dependence power 12 11 12 11 10 11 11 11 6 5 11 1
Corresponding author
Golam Kabir can be contacted at: golam.kabir@uregina.ca
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