Asia pacific journal of information systems

The Korea Society of Management Information Systems (한국경영정보학회)
권호 표지
DOI QR코드

DOI QR Code

Unveiling the Effects of ICT Adoption in the Apparel Sector of Bangladesh Based on Technology-Organization-Environment Framework

  • S.M. Shafiul Alam (School of Business, Ahsanullah University of Science and Technology)
  • Received : 2022.11.09
  • Accepted : 2023.08.30
  • Published : 2023.12.31
Download PDF
⟨ Previous Next ⟩

Abstract

The study is based on the technology-organization-environment (TOE) model which, attempted to determine the factors that are going to influence ICT adoption. The proposed research model evaluates the interplay among technological context (IT infrastructure, system security, and user capacity), organizational context (top management commitment, and innovations strategies), environmental context (quick response to the external agencies, interactive network infrastructure, and competitive pressure) and ICT adoption (productivity growth, organizational change, and competitiveness). Data were collected from 243 senior executives of full member firms of the Bangladesh Garments and Manufacturers Association (BGMEA) of examining the relationships among the constructs in the proposed framework utilizing structural equation modeling (SEM). The analysis of TOE factors revealed that environmental, organizational, and technological factors have a significant impact on the successful implementation of ICT tools. The study also discusses implications for management practitioners.

Keywords

References

  1. Al-Douri, Y. K., Karim, R., Parida, A., and Kumar, U. (2012). Model-based security system for data acquisition in e-Maintenance using artificial immune system and cloud computing. International Journal of Condition Monitoring and Diagnostic Engineering Management, 15(4), 26.
  2. Al-Qirim, N. (2007). The adoption of eCommerce communications and applications technologies in small businesses in New Zealand. Electronic Commerce Research and Applications, 6(4), 462-473. https://doi.org/10.1016/j.elerap.2007.02.012
  3. Anderson, J. C., and Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411-423. https://doi.org/10.1037/0033-2909.103.3.411
  4. Andersen, T. J., and Segars, A. H. (2001). The impact of IT on decision structure and firm performance: evidence from the textile and apparel industry. Information and Management, 39(2), 85-100. https://doi.org/10.1016/S0378-7206(01)00081-7
  5. Arpaci, I., Yardimci, Y. C., Ozkan, S., and Turetken, O. (2012). Organizational adoption of information technologies: A literature review. International Journal of eBusiness and eGovernment Studies, 4(2), 37-50.
  6. Arvanitis, S. (2005). Computerization, workplace organization, skilled labour and firm productivity: Evidence for the Swiss business sector. Economics of Innovation and New Technology, 14(4), 225-249. https://doi.org/10.1080/1043859042000226257
  7. Auramo, J., Kauremaa, J., and Tanskanen, K. (2005). Benefits of IT in supply chain management: An explorative study of progressive companies. International Journal of Physical Distribution & Logistics Management, 35(2), 82-100. https://doi.org/10.1108/09600030510590282
  8. Bangladesh Bureau of Statistics. (BBS) (2021).
  9. Bagozzi, R. P., and Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(1), 74-94. https://doi.org/10.1007/BF02723327
  10. Bayo-Moriones, A., Billon, M., and Lera-Lopez, F. (2013). Perceived performance effects of ICT in manufacturing SMEs. Industrial Management & Data Systems, 113(1), 117-135. https://doi.org/10.1108/02635571311289700
  11. Bayo-Moriones, A., and Lera-Lopez, F. (2007). A firm-level analysis of determinants of ICT adoption in Spain. Technovation, 27(6-7), 352-366. https://doi.org/10.1016/j.technovation.2007.01.003
  12. Becchetti, L., Londono Bedoya, D. A, and Paganetto, L. (2003). ICT investment, productivity and efficiency: Evidence at firm level using a stochastic frontier approach. Journal of Productivity Analysis, 20(2), 143-167. https://doi.org/10.1023/A:1025128121853
  13. Bresnahan, T. F., Brynjolfsson, E., and Hitt, L. M. (2002). Information technology, workplace organization, and the demand for skilled labor: Firm-level evidence. The Quarterly Journal of Economics, 117(1), 339-376. https://doi.org/10.1162/003355302753399526
  14. Camagni, R., and Capello, R. (2009). Knowledge-based economy and knowledge creation: The role of space. In Growth and Innovation of Competitive Regions (pp. 145-165). Springer, Berlin, Heidelberg.
  15. Cardona, M., Kretschmer, T., and Strobel, T. (2013). ICT and productivity: Conclusions from the empirical literature. Information Economics and Policy, 25(3), 109-125. https://doi.org/10.1016/j.infoecopol.2012.12.002
  16. Chapman, P., James-Moore, M., Szczygiel, M., and Thompson, D. (2000). Building internet capabilities in SMEs. Logistics Information Management, 13(6), 353-361. https://doi.org/10.1108/09576050010355662
  17. Chen, C. L. (2019). Value creation by SMEs participating in global value chains under industry 4.0 trend: Case study of textile industry in Taiwan. Journal of Global Information Technology Management, 22(2), 120-145. https://doi.org/10.1080/1097198X.2019.1603512
  18. Chirumalla, K. (2021). Building digitally-enabled process innovation in the process industries: A dynamic capabilities approach. Technovation, 105, 102256. https://doi.org/10.1016/j.technovation.2021.102256
  19. Chong, A. Y. L., Ooi, K. B., Tak, Y. K., and ShuYang, Z. (2009). Factors affecting the adoption of e-commerce: A study of the textile industry in Wujin, China. International Journal of Business and Management Science, 2(2), 117-130.
  20. Churchill Jr, G. A. (1979). A paradigm for developing better measures of marketing constructs. Journal of Marketing Research, 16(1), 64-73. https://doi.org/10.1177/002224377901600110
  21. Dastane, D. O. (2020). The impact of technology adoption on organizational productivity. Journal of Industrial Distribution & Business, 11(4), 7-18.
  22. Ding, J. H., Chen, P. S., and Lyu, J. (2011). Evolutionary strategy to apply information and communication technology: A case study in the apparel industry. Production Planning & Control, 22(3), 282-297. https://doi.org/10.1080/09537287.2010.498606
  23. Djalic, N., Nikolic, M., Bakator, M., and Erceg, Z. (2021). Modeling the influence of information systems on sustainable business performance and competitiveness. Sustainability, 13(17), 9619. https://doi.org/10.3390/su13179619
  24. Debnath, B., Siraj, M. T., Rashid, K. H. O., Bari, A. M., Karmaker, C. L., and Al Aziz, R. (2023). Analyzing the critical success factors to implement green supply chain management in the apparel manufacturing industry: Implications for sustainable development goals in the emerging economies. Sustainable Manufacturing and Service Economics, 2, 100013. https://doi.org/10.1016/j.smse.2023.100013
  25. Elasrag, H. (2010). Enhancing the competitiveness of the Arab SMEs. Available at SSRN 1586454.
  26. Falk, M. (2005). ICT-linked firm reorganisation and productivity gains. Technovation, 25(11), 1229-1250. https://doi.org/10.1016/j.technovation.2004.07.004
  27. Fornell, C., and Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50. https://doi.org/10.1177/002224378101800104
  28. Fuentelsaz, L., Gomez, J., and Polo, Y. (2003). Intrafirm diffusion of new technologies: An empirical application. Research Policy, 32(4), 533-551. https://doi.org/10.1016/S0048-7333(02)00081-1
  29. Gorsuch, R. L. (1983). Factor analysis. Hillsdale, NJ: Lawrence Erlbaum Associates.
  30. Gu, J. W., and Jung, H. W. (2013). The effect of IS resources, capabilities, and qualities on organizational performance: An integrated approach. Information and Management, 50(2), 87-97. https://doi.org/10.1016/j.im.2013.02.001
  31. Gudivada, V. N., Irfan, M. T., Fathi, E., and Rao, D. L. (2016). Cognitive analytics: Going beyond big data analytics and machine learning. In Handbook of statistics (Vol. 35, pp. 169-205). Elsevier.
  32. Homburg, C., Hoyer, W. D., and Fassnacht, M. (2002). Service orientation of a retailer's business strategy: Dimensions, antecedents, and performance outcomes. Journal of Marketing, 66(4), 86-101. https://doi.org/10.1509/jmkg.66.4.86.18511
  33. Giuri, P., Torrisi, S., and Zinovyeva, N. (2008). ICT, skills, and organizational change: Evidence from Italian manufacturing firms. Industrial and Corporate Change, 17(1), 29-64. https://doi.org/10.1093/icc/dtm038
  34. Goodacre, A., and Tonks, I. (1995). Finance and technological change. In Handbook of the Economics of Technological Change (pp. 298-341). Oxford: Basil Blackwell.
  35. Han, S., and Ravichandran, T. (2006). Does IT impact firm innovativeness: An empirical examination of complementary and direct effects. In AMCIS 2006 Proceedings.
  36. Harris, M. M., and Schaubroeck, J. (1990). Confirmatory modeling in organizational behavior/human resource management: Issues and applications. Journal of Management, 16(2), 337-360. https://doi.org/10.1177/01492063900160020
  37. Hasan, K. F., Mia, M. S., Rahman, M. M., Ullah, A. A., and Ullah, M. S. (2016). Role of textile and clothing industries in the growth and development of trade & business strategies of Bangladesh in the global economy. International Journal of Textile Science, 5(3), 39-48. https://doi.org/10.5923/j.textile.20160503.01
  38. Hausladen, I., and Bechheim, C. (2004). E-maintenance platform as a basis for business process integration. In 2nd IEEE International Conference on Industrial Informatics, 2004 (pp. 46-51). IEEE.
  39. Hoque, M. A., Rasiah, R., Furuoka, F., and Kumar, S. (2021). Linkages among automation, job displacement, and reshoring: Evidence from the Bangladeshi apparel industry. Research Journal of Textile and Apparel, Vol. ahead-of-print No. ahead-of-print, 1-17.
  40. Hoque, M. R., Saif, A. N. M., AlBar, A. M., and Bao, Y. (2016). Adoption of information and communication technology for development: A case study of small and medium enterprises in Bangladesh. Information Development, 32(4), 986-1000. https://doi.org/10.1177/0266666915578202
  41. Haque, M. Z. (2016). Prospective area of ICT use to improve the performance of Corporate Governance in Bangladesh. The Cost and Management, 44(2), 4-18.
  42. Horan, T. A., and Schooley, B. L. (2007). Time-critical information services. Communications of the ACM, 50(3), 73-78. https://doi.org/10.1145/1226736.1226738
  43. Huang, R., Yan, P., and Yang, X. (2021). Knowledge map visualization of technology hotspots and development trends in China's textile manufacturing industry. IET Collaborative Intelligent Manufacturing, 3(3), 243-251. https://doi.org/10.1049/cim2.12024
  44. Hult, G. T. M., Hurley, R. F., and Knight, G. A. (2004). Innovativeness: Its antecedents and impact on business performance. Industrial Marketing Management, 33(5), 429-438. https://doi.org/10.1016/j.indmarman.2003.08.015
  45. Ismail, W. N. S. W., and Ali, A. (2013). Conceptual model for examining the factors that influence the likelihood of computerised accounting information system (CAIS) adoption among Malaysian SME. International Journal of Information Technology and Business Management, 15(1), 122-151.
  46. Jiang, X., Bao, Y., Xie, Y., and Gao, S. (2016). Partner trustworthiness, knowledge flow in strategic alliances, and firm competitiveness: A contingency perspective. Journal of Business Research, 69(2), 804-814. https://doi.org/10.1016/j.jbusres.2015.07.009
  47. Junglas, I., and Ives, B. (2007). Recovering IT in a disaster: Lessons from Hurricane Katrina. MIS Quarterly Executive, 6(1).
  48. Kagermann, H., Osterle, H., and Jordan, J. M. (2010). IT-Driven Business Models. Hoboken: John Wiley & Sons.
  49. Kannabiran, G., and Dharmalingam, P. (2012). Enablers and inhibitors of advanced information technologies adoption by SMEs: An empirical study of auto ancillaries in India. Journal of Enterprise Information Management, 25(2), 186-209. https://doi.org/10.1108/17410391211204419
  50. Kapucu, N. (2006). Interagency communication networks during emergencies: Boundary spanners in multiagency coordination. The American Review of Public Administration, 36(2), 207-225. https://doi.org/10.1177/0275074005280605
  51. Karim, R., Candell, O., and Soderholm, P. (2009). E-maintenance and information logistics: Aspects of content format. Journal of Quality in Maintenance Engineering, 15(3), 308-324. https://doi.org/10.1108/13552510910983242
  52. Karim, M. S., Nahar, S., and Demirbag, M. (2022). Resource-based perspective on ict use and firm performance: A meta-analysis investigating the moderating role of cross-country ICT development status. Technological Forecasting and Social Change, 179, 121626. https://doi.org/10.1016/j.techfore.2022.121626
  53. Khan, S. A. R., Yu, Z., Golpira, H., Sharif, A., and Mardani, A. (2021). A state-of-the-art review and meta-analysis on sustainable supply chain management: Future research directions. Journal of Cleaner Production, 278, 123357. https://doi.org/10.1016/j.jclepro.2020.123357
  54. Kristl Volfova, M. (2022). Evidence on the use of information and communication technology for employee training in selected companies in us-pilot study. https://doi.org/10.36689/uhk/hed/2022-01-036
  55. Kline, R. B. (2005). Principles and Practice of Structural Equation Modeling (2nd ed.). New York: Guilford.
  56. Krishna, N., and Singh, J. (2018). Factors affecting B2B e-commerce adoption decision: An analysis of Indian textile industry. Academy of Marketing Studies Journal, 22(2), 1-9.
  57. Kuan, K. K., and Chau, P. Y. (2001). A perception-based model for EDI adoption in small businesses using a technology-organization-environment framework. Information & Management, 38(8), 507-521. https://doi.org/10.1016/S0378-7206(01)00073-8
  58. Lahiri, S., Roy, A. D., and Jana, P. (2021). A study of digital literacy and its importance for the Indian apparel industry.
  59. Lam, J. K. C., and Postle, R. (2006). Textile and apparel supply chain management in Hong Kong. International Journal of Clothing Science and Technology, 18(3-4), 265-277. https://doi.org/10.1108/09556220610668491
  60. Lin, H. F., and Lin, S. M. (2008). Determinants of e-business diffusion: A test of the technology diffusion perspective. Technovation, 28(3), 135-145. https://doi.org/10.1016/j.technovation.2007.10.003
  61. Lin, H. F., and Lee, G. G. (2005). Impact of organizational learning and knowledge management factors on e-business adoption. Management Decision, 43(2), 171-188. https://doi.org/10.1108/00251740510581902
  62. Liu, J., Wang, W., Ma, F., Yang, Y. B., and Yang, C. S. (2012). A data-model-fusion prognostic framework for dynamic system state forecasting. Engineering Applications of Artificial Intelligence, 25(4), 814-823. https://doi.org/10.1016/j.engappai.2012.02.015
  63. Manueli, K., Latu, S., and Koh, D. (2007, July). ICT adoption models. In 20th Annual Conference of the National Advisory Committee on Computing Qualifications (NACCQ 2007) (pp. 175-181).
  64. Melville, N., Kraemer, K., and Gurbaxani, V. (2004). Information technology and organizational performance: An integrative model of IT business value. MIS Quarterly, 28(2), 283-322. https://doi.org/10.2307/25148636
  65. Mikalef, P., Pateli, A., and van de Wetering, R. (2021). IT architecture flexibility and IT governance decentralisation as drivers of IT-enabled dynamic capabilities and competitive performance: The moderating effect of the external environment. European Journal of Information Systems, 30(5), 512-540. https://doi.org/10.1080/0960085X.2020.1808541
  66. Moore, G. C., and Benbasat, I. (1991). Development of an instrument to measure the perceptions of adopting an information technology innovation. Information Systems Research, 2(3), 192-222. https://doi.org/10.1287/isre.2.3.192
  67. Mouzas, S., and Ford, D. (2012). Leveraging knowledge-based resources: The role of contracts. Journal of Business Research, 65(2), 153-161. https://doi.org/10.1016/j.jbusres.2011.05.015
  68. Muller, A., Marquez, A. C., and Iung, B. (2008). On the concept of e-maintenance: Review and current research. Reliability Engineering and System Safety, 93(8), 1165-1187. https://doi.org/10.1016/j.ress.2007.08.006
  69. Nurruzaman, N., Haque, A., and Azad, R. (2016). Is Bangladeshi RMG sector fit in the global apparel business? Analyses the supply chain management. The South East Asian Journal of Management, 4(1), 53-72. https://doi.org/10.21002/seam.v4i1.5631
  70. Park-Poaps, H., Bari, M. S., and Sarker, Z. W. (2020). Bangladeshi clothing manufacturers' technology adoption in the global free trade environment. Journal of Fashion Marketing and Management: An International Journal, 25(2), 354-370. https://doi.org/10.1108/JFMM-06-2020-0119
  71. Phene, A., Fladmoe-Lindquist, K., and Marsh, L. (2006). Breakthrough innovations in the US biotechnology industry: The effects of technological space and geographic origin. Strategic Management Journal, 27(4), 369-388. https://doi.org/10.1002/smj.522
  72. Porter, M. E., and Millar, V. E. (1985). How information gives you competitive advantage. Harvard Business Review, 63(4), 149-160.
  73. Ramdani, B., Chevers, D., and A. Williams, D. (2013). SMEs' adoption of enterprise applications: A technology-organisation-environment model. Journal of Small Business and Enterprise Development, 20(4), 735-753. https://doi.org/10.1108/JSBED-12-2011-0035
  74. Rasiah, R., and Vinanchiarachi, J. (2013). Institutional support and technological upgrading: Evidence from dynamic clusters in Latin America and Asia. World Social and Economic Review, 2(1), 24-47.
  75. Raymond, L., and Bergeron, F. (2008). Enabling the business strategy of SMEs through e-business capabilities: A strategic alignment perspective. Industrial Management and Data Systems, 108(5), 577-595. https://doi.org/10.1108/02635570810876723
  76. Rodriguez, M. A., Ricart, J. E., and Sanchez, P. (2002). Sustainable development and the sustainability of competitive advantage: A dynamic and sustainable view of the firm. Creativity and Innovation Management, 11(3), 135-146. https://doi.org/10.1111/1467-8691.00246
  77. Rogers, E. M. (1995). Diffusion of innovations: Modifications of a model for telecommunications. In Schriftenreihe des Wissenschaftlichen Instituts fur Kommunikationsdienste (vol 17). Berlin, Heidelberg: Springer. https://doi.org/10.1007/978-3-642-79868-9_2
  78. Saif, A. N. M., Rahman, A. A., and Mostafa, R. (2021). Post-implementation challenges of ERP adoption in apparel industry of developing country. LogForum, 17(4), 512-529. http://doi.org/10.17270/J.LOG.2021.624
  79. Salam, M. A. (2017). A Framework for developing sustainability index for ready-made garments sector in Bangladesh. Theory and Applications in the Knowledge Economy, 710.
  80. Shiralkar, K., Bongale, A., Kumar, S., Kotecha, K., and Prakash, C. (2021). Assessment of the benefits of information and communication technologies (ICT) adoption on downstream supply chain performance of the retail industry. Logistics, 5(4), 80. https://doi.org/10.3390/logistics5040080
  81. Smallbone, D., North, D. J., Baldock, R., and Ekanem, I. (2002). Encouraging and Supporting Enterprise in Rural Areas. London, UK: Small Business Service.
  82. Sen, A. (2008). The US fashion industry: A supply chain review. International Journal of Production Economics, 114(2), 571-593. https://doi.org/10.1016/j.ijpe.2007.05.022
  83. Straub, D. W., and Watson, R. T. (2001). Research commentary: Transformational issues in researching IS and net-enabled organizations. Information Systems Research, 12(4), 337-345. https://doi.org/10.1287/isre.12.4.337.9706
  84. Tornatzky, L. G., Fleischer, M., and Chakrabarti, A. K. (1990). Processes of Technological Innovation. Lexington books.
  85. Tornatzky, L. G., and Klein, K. J. (1982). Innovation characteristics and innovation adoption-implementation: A meta-analysis of findings. IEEE Transactions on Engineering Management, 29(1), 28-45. https://doi.org/10.1109/TEM.1982.6447463
  86. Vega, A., Chiasson, M., and Brown, D. (2008). Extending the research agenda on diffusion: The case of public program interventions for the adoption of e-business systems in SMEs. Journal of Information Technology, 23(2), 109-117. https://doi.org/10.1057/palgrave.jit.2000135
  87. Ven, K., and Verelst, J. (2011). An empirical investigation into the assimilation of open source server software. Communications of the Association for Information Systems, 28(1), 117-140. https://doi.org/10.17705/1CAIS.02809
  88. Yen, B. P. C., and Su, C. T. (2007). Information technology infrastructure for textile and apparel industry in Hong Kong. Electronic Markets, 7(2), 9-12. https://doi.org/10.1080/10196789700000017
  89. Yen, B. P. C. (2002). Electronic commerce front-end in apparel supply chain. Computers & Industrial Engineering, 42(2-4), 471-480. https://doi.org/10.1016/S0360-8352(02)00041-4
  90. Yunus, M., and Yamagata, T. (2012). The garment industry in Bangladesh. Dynamics of the Garment Industry in Low-Income Countries: Experience of Asia and Africa (Interim Report). Chousakenkyu Houkokusho, IDE-JETRO, 6, 29.