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Factors Affecting the Adoption of B2B E-Commerce: A case of Readymade Garments (RMG) Industry in Bangladesh

Md. Tariqul Islam

Abstract

The export oriented readymade garments (RMG) sector of Bangladesh plays a significant role to the economy of Bangladesh. B2B e-commerce is a revolution to this sector. Thus, the country has become the trading nation instead of predominantly aid receiving nation with the blessings of e-commerce. This study aimed to investigate the factors influencing the adoption of business-to-business (B2B) e-commerce in the RMG sectors of Bangladesh as most of the RMG sectors of Bangladesh extensively used to with this online service mainly due to the performance enhancement of the business and for sustaining in the global competition. The study was based on the data obtained in two stages i.e., first for developing constructs of the study from 12 experienced professionals (Merchandiser and IT) through the in-depth interview and then collected data through the questionnaire developed by the constructs from the data getting at the initial stage. Through analyzing 213 completed questionnaires by SmartPLS 3.0 software, this study found some significant and positive relationships (p<0.05) of sourcing, spontaneous solution, cost saving, security with the adoption ofB2B e-commerce while positive but insignificant relationship (p>0.05) of negotiation, inventory control, and customer focus with the adoption of B2B e-commerce in the RMG sectors of Bangladesh.