Application of the Revised Theory of the Planned Behaviour Model to Assess the Readiness of the Circular Economy in the RMG Sector of Bangladesh

Application of the Revised Theory of the Planned Behaviour Model to Assess the Readiness of the Circular Economy in the RMG Sector of Bangladesh

The research paper investigates the ready-made garments (RMG) sector’s circular economy (CE) practices involving the 3 R’s—reusing, remanufacturing, and recycling—for a sustainable future. The revised theory of planned behavior modelling (RTPB) is applied to achieve this goal by analyzing a structural equation modelling (SEM) approach. The study finds that the basic elements of the TPB model, along with environmental commitment, green economic incentives, and firm maturity, can more effectively explain CE readiness than the original TPB model, which suggests attitude, social pressure, green economic incentives, environmental commitment, and firm maturity significantly impact CE readiness. The results of this study have implications for policymakers in developing countries who seek to promote CE implementation in the RMG sector. This project was carried out in collaboration with academics from Bangladesh.

Challenge

In this insightful research paper, the authors raise two main questions. At first, a fundamental research question arises on the driving forces for CE readiness of the RMG industry from a developing country perspective. Secondly, the quality of the revised TPB model on the CE preparedness of RMG firms is checked.

Approach

Cross-sectional data derived from a survey tool was applied to the RTPB model. For collecting responses, a five-point Likert scale was used. With the assistance of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), data was collected via questionnaires from a number of RMG companies in Bangladesh in 2022.

Insight

From the study, we find two types of findings: managerial and theoretical. First, the study suggests that there is a need to increase the environmental commitment of RMG firms to adopt circular practices. Second, it highlights the importance of providing green economic incentives to RMG firms to motivate them to adopt circular practices. Third, the paper suggests that social pressure and attitudes towards circular practices are essential for promoting CE readiness. In fine, the study develops the revised theory of planned behavior (RTPB), which extends the traditional TPB model by including environmental commitment, green economic incentives, and firm maturity as additional factors that influence and provide a unified framework for CE readiness.

Impact

Policymakers in developing countries can use this model to develop strategic plans that prioritize environmental sustainability, economic benefits, and social responsibility. Awareness will be created among the owners and employees of manufacturing firms regarding the harmful impacts of industrial pollutants on the environment and public well-being. The government may encourage and motivate business owners to set up waste management initiatives. Regulatory bodies and financial institutions can design eco-friendly policies while ensuring proper implementation through periodic audits and monitoring. Finally, academia can install normative culture in the curriculum and design textbooks in such a way as to develop future entrepreneurs and business owners.

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