Impact of factory certifications on firm resources: a quantitative content analysis of the Bangladeshi readymade garments (RMG) industry

Abstract

Purpose

This study aims to investigate the association between certifications in the Bangladeshi readymade garment (RMG) sector and diverse firm resources, contributing to Bangladesh’s competitive advantage.

Design/methodology/approach

The study conducted a quantitative content analysis of 366 Bangladeshi RMG firm websites, using Barney’s (1991) resource-based theory (RBT) framework. Pearson correlation and linear regression analyses were used to explore the research questions.

Findings

The findings reveal significant positive impacts of certifications on all firm resource categories (physical, human, organizational knowledge and learning, general organizational and financial) under the RBT framework. Certifications correlate positively with resources, from small to medium, and with various factors, though some negative correlations were identified.

Research limitations/implications

The study improves comprehension of apparel manufacturers’ certifications and their association with firm resources, offering valuable insights for stakeholders on long-term competitive advantages. Yet, limitations should be considered, including size-dependent variations and reliance on self-reported website data.

Originality/value

This study represents a pioneering effort, concentrating on Bangladesh’s RMG sector and offering a unique perspective on the implications of certifications for firm resources within emerging economies.

Citation

Das, S. and Das, D. (2024), "Impact of factory certifications on firm resources: a quantitative content analysis of the Bangladeshi readymade garments (RMG) industry", Journal of Chinese Economic and Foreign Trade Studies, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JCEFTS-01-2024-0005