Financial Risks of Poor Leadership: A Case Study Analysis of Bangladesh Multinational Textile Corporations
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| Bangladesh Textile Multinational Corporations |
2.1 Introduction
The discussion focuses on issues relevant to MNCs strong enough to disturb the positive outcome of business operations. The detailed discussion in this chapter evaluates issues that have been raised in the form of research questions. The chapter begins with an evaluation of the significance of the leadership role and how this job role can contribute to ensuring effective business practices. The discussion on the leadership role will help to understand how supportive leadership can be effective in the workplace context. A specific section in this chapter evaluates the role of unfavorable working circumstances as these might be and can be a potential hurdle to attracting MNCs to invest in Bangladesh. This section particularly focuses on governance issues and administrative issues. The last part of the literature review investigates certain issues that have been highlighted in the second research question. This section particularly focuses on how the application of different theories can bring improvement in workplace issues. This part of the research particularly focuses on the application of Porter's five forces model and how diversity and creativity can be ensured in business operations using different creative options. The chapter concluded with a summary of the literature review.2.2 Leadership Role as a Business Practice to Overcome Financial Challenges
Leadership role (Saeidi et al., 2021) is a major source to ensure a strong connection between organizational performance, sustainable financial returns, and the presence of corporate social responsibility. The presence of effective leadership becomes significantly essential when parent organizations operate in other countries and their subsidiary or partners operate in different countries. Poor business performance is largely associated with ineffective leadership roles. Sonmez-Cakir and Adiguzel (2020) denote that due to the economic uncertainty in the global market during Covid-19, MNCs looke for the presence of strong leaders capable of taking effective decisions to reduce risks to a business. This means a leader of an organization should be capable to use his/her knowledge for positive financial outcomes. Painter et al. (2019a) argue that the international business environment has become competitive enough to force multinational corporations to ensure the presence of capable leaders who can improve the ways organizations do business and use certain business strategies that might contribute to achieving a competitive position in the market. Hence, (Painter, Hibbert, et al., 2019) the appointment of a capable leader is a convincing business practice because competent leaders can ensure the implementation of certain business values that contribute to enhancing business performance. Organizations always tend to use new value-driven strategies to achieve organizational goals. The appointment (Tran, 2017) of skillful leaders is a part of MNCs' strategies. The primary purpose of appointing skillful leaders is to reduce financial threats by using their knowledge and skills to ensure unique strategic planning that can improve employees' working performance resulting in ample profitability.Lorino (2018) denotes that organizational success depends on the concept of value and valuation. This means leaders are responsible to understand growth chances and capable enough to evaluate certain practices that contribute to business success. Tran (2017) believes that organizations adopt certain practices that help to develop a unique workplace culture. Leaders share their knowledge, skills, and caliber to harmonize every strategic activity to ensure innovation resulting in financial gains. Del Baldo and Baldarelli (2017) argue that the combination of the leadership role and employees' motivated attitude ensures performance enhancement resulting in cost-effectiveness and sustainability in business operations. It is part of the leadership role to evaluate available resources whether these are financial resources or human resources to avert negative performance as it might contribute to financial losses.
Moran et al. (2015) denote that one of the strongest reasons behind businesses' failure is the absence of skilled and knowledgeable leadership. MNCs often face strong competition (Rosina, 2015) resulting in poor financial growth, decline in business productivity, and disruption in revenue generation. Leaders are responsible for the poor financial growth because their inability to use their potential to improve business practices is one of the leading reasons that bring financial deficit from business operations.
The role of the financial leadership I.C.A.E.W. (2018) is not limited to improving the financial problems but the use of this term indicates that leaders are responsible to ensure the presence of a unique business model or infrastructure that addresses all the aspects related to financial gains. The core concept behind using this term is to link the financial prospects of MNCs with different strategic concepts that help leaders to secure ample financial returns from the success of business operations. Ample cash flows (Batra & Verma, 2017) ensure the financial strength of an organization thus enabling the leaders of an organization to ensure innovation in business practices. The availability of ample finances means continuity of business operations and improvement in workplace culture. Leaders as Batra and Verma (2017) denote are responsible for overall budgeting, allocation of financial resources for particular tasks, and planning to generate profitability. Rosenberger (2018) believes that the leadership role is not limited to guiding and financial planning but a leader's knowledge contributes to a productive workplace culture resulting in the successful execution of business tasks with results of economic prosperity. Rosenberger further argues that the financial stability of business organizations depends on the strength of improved relationships between the leadership of an organization and employees. This is a major source to improve employees' motivation resulting in enhanced work commitment.
Using the leadership role as an effective business practice as Othman et al. (2019, p. 635) argue helps global corporations to enhance the presence of "performance function" leadership and "maintenance function" leadership. The former ensures the "accomplishment of performance" while the latter ensures "group stability and social communication" (P. 635). However, the presence of "group stability and social communication" seems absent in the Bangladeshi MNCs context. The fire incidents (Manik & Yardley, 2012) are cases of "unpardonable negligence" requiring the presence of (Archer & Cameron, 2013) collaborative leadership to improve workplace culture to ensure employees’ safety and to resolve monetary, professional development, and job satisfaction issues.
The primary goal of MNCs (Sonmez-Cakir & Adiguzel, 2020) is to generate profitability from business operations and for this purpose, these organizations opt for different strategic initiatives that include mergers and acquisitions or starting a new business in a particular market. The presence of visionary and competitive leadership not only helps organizations penetrate new markets but ensures the success of business operations using unique workplace strategies.
To overcome financial issues (Painter, Hibbert, et al., 2019a), organizations need the implementation of value-driven initiatives and at this point, the leadership role becomes more important because any change in strategic initiatives might result either in financial gains or losses. Another crucial factor behind successful leadership is the presence of a positive mindset. A leader with a rigid mind might avoid innovative ideas and business practices and this can result in financial losses. A business market as Tran, (2017) believes is always volatile; especially, when local business organizations are capable enough to compete with multinational organizations. This situation demands the leadership of an MNC to understand the local business culture and ensure the presence of a unique business model based on versatile business cultural values to stay competitive in the market. Porter and Kramer (2006) denote that the adoption of unique competitive strategies can bring a competitive edge to a business organization. It is the responsibility of the leadership to evaluate, map and understand changing market trends to reduce financial risks and to ensure the presence of competitive business approaches with creativity.
A sustainable financial stream (Del Baldo & Baldarelli, 2017) depends on the presence of effective leadership in organizations capable enough to motivate employees and understand their monetary needs, behavior, and cognitive traits to ensure a positive workplace environment. At the external level, a leader needs to be competent enough to understand market needs and trends. At the internal level, a leader should have knowledge about the availability of organizational resources, and the presence of a skilled workforce to ensure strong working culture for ample financial gains from the market. Dacin et al. (2022) denote that a lot of literature has been written on the leadership role for timely decision-making processes; however, there is a need to understand that the sustainability of financial outcomes from business operations also depends on the presence of an ethical business model. This means it is one of the core responsibilities of the leadership role to evaluate business practices that an MNC follows. Ethical business practices as Dacin and colleagues further argue help leaders to improve the operational mechanism and to critically evaluate the reasons behind employees' poor work motivation and job dissatisfaction. These identified aspects of any business negatively affect the financial stream of a business.
2.3 Supportive Leadership in Workplace Context
It is one of the responsibilities of leaders to be supportive in every respect to ensure the prevalence of a unique workplace atmosphere. A supportive leader guides and assists his/her subordinates in all circumstances leaving a personal example of facing hard times successfully. Effective communication is one of the core competencies of supportive leaders because the message must be communicated to employees effectively. A clearer understanding of the message enables employees to perform their jobs as per organizational requirements to achieve organizational goals (Kanter, 2010). Supportive leaders influence workers resulting in improved job performance because it is one of the strongest characteristics of the supportive leadership role to support employees in every respect so that they can execute the job task successfully. Sharing ideas and assuring employees that their concerns and suggestions have been heard contributes to a positive work culture that boosts individual as well as group performance (McShane et al., 2018).In a detailed investigation of Bangladeshi leadership roles in business organizations including MNCs, Selvarajah et al. (2018) denote that the structure of Bangladeshi leadership is hierarchal that is largely influenced by local culture, geopolitical factors, and religion. The investigations indicate that the difference between managerial leadership and employees exists at an extensive level. A direct interaction between employees and managerial leadership is rare but any communication concerning job tasks is delegated using intermediaries such as supervisors or section managers. However, Selvarajah and co-researchers believe that understanding behavioral traits is essential because, in a religious context, the mixing of commoners and elite groups of the society has no such differences. Political interference at public and private levels is a major issue that might hurt the working mechanism of MNCs. The concepts of "socially superior and non-confrontational approach is accepted norms" in Bangladesh (p. 28).
2.3.1 Responsibilities of Organizational Leadership
Khalid et al. (2012) denote that it is one of the core responsibilities of organizational leadership to be supportive to understand employees' behavior and needs. This helps to improve business strategies. Supportive leadership is one of the critical factors behind performance improvement because it is the primary element that reduces job stress. Supportive leaders assist their subordinates to face challenges and overcome work performance issues resulting in improved performance. The following Figure will help to understand the role of supportive leadership to decrease employees' job stress resulting in improved job performance thus contributing to financial gains for an organization. |
| Supportive Leadership |
Tareque and Islam (2023) presented a conceptual framework in the Bangladeshi Leadership context associating leadership behavior with job performance and to fulfill job responsibilities. For instance, Tareque and Islam (2023, p. 6) believe that "task-oriented behavior" directly helps the leadership to complete their job responsibilities such as planning, clarification of job roles, and monitoring of operations. In the MNCs context, these are certain responsibilities that are directly related to gaining competitive advantages. Similarly, "relation-oriented behavior" assists leaders to be supportive while "change-oriented behavior" helps to ensure innovation in organizational tasks (p. 6). The I.C.A.E.W. (2018) report suggests that being technical is a part of the leadership role. This does not mean that a leader should only focus on budgeting, planning, and resolving HR issues. Instead, (Zu, 2019) the core concept behind fulfilling leadership responsibilities is to maximize profitability ensuring novelty in business operations. Zu (2019) further denotes that a leader is bound to different types of responsibilities. One of the responsibilities is to understand external and internal organizational issues. This approach helps to evaluate stakeholders' concerns, demands, and expectations. To ensure profitability and overcome financial risks, it is a leader's responsibility to understand the behavior and needs of employees working for MNCs.
Understanding employees' needs have been a problem in Bangladeshi MNCs, especially in the textile industry. Poor leadership is associated with this problem that resulted in financial losses for MNCs as well as risking employees' lives due to health and safety issues (BBC News, 2023; Prentice, 2021; Yusha, 2018).
Cremer and Vandekerckhove (2017) argue that understanding employees' needs is essential and for this purpose, the leadership of MNCs needs to apply ethical models that highlight employees' job responsibilities and the conditions they should avoid working. The presence of an ethical work model can help reduce conflicts between the leadership and employees resulting in improved performance. Leaders of MNCs need to apply the concept of employee well-being to better understand employees' needs and wants. Del Baldo and Baldarelli (2017) argue that a disagreement between managerial leadership and employees emerges when MNCs avoid the application of behavioral as well as work ethics models. The application of the behavioral model helps to understand certain factors that agitate employees and reasons employees shirk from work resulting in poor performance and ending up in financial losses for an organization. To avoid such a situation Cremer and Vandekerckhove (2017) believe that the understanding of context is important because certain contextual factors play a crucial role to shape employees' behavior.
Investigating the problems in the United States dance industry, Roepe (2016) denotes that poor performance is a common issue regardless of work or industry. It's a two-way problem and only employees cannot be blamed for the poor results. Understanding employees' needs is essential because monetary needs often lead employees to dissatisfaction with work. Roepe further argues that corporations tend to earn profit and it is the primary objective of organizations operating in different countries. To achieve this goal of earning profit (Del Baldo and Baldarelli 2017) organizations should ensure structural changes in their strategic management to ensure the presence of positive workplace culture.
Sageder and Feldbauer-Durstmüller (2019) believe that multinational companies ensure effective management control to ensure success. The primary purpose of using organizational leadership to ensure management control is to achieve organizational goals because these organizations operate across borders using local subsidiaries because employees working in these subsidiaries or partner organizations better understand the local working culture. The leadership of these subsidiaries or partner organizations is responsible for taking effective strategic decisions. However, these strategic decisions sometimes can be wrong and bring financial risks for MNCs.
To improve the strategic compatibility of MNCs (Schwarzmüller et al., 2017) organizations should opt for certain strategic initiatives that might attract foreign investors to invest in local businesses. However, it is essential to ensure the safety of stakeholders’ interests when planning such activities. The financial stability of MNCs as Rosenberger (2018) believes requires the presence of convincing leaders who can combine ethical and commercial factors to ensure business success. There is always a difference between the leadership vision and employees' visions; hence, to overcome strategic complexities it is essential to revisit different strategies to ensure unanimity in business strategies. A better understanding (Claudiu et al., 2011) of the external and internal environment is a major help to improve organizational strategies to stay competitive in regional and international markets.
Mahbub et al. (2022) believe that the geographic location of Bangladesh makes it an attractive place for MNCs to invest in the country. However, MNCs apart from the geographic location consider different aspects that are crucial to do business ethically. The institutional environment is one of the major factors that sometimes become a hurdle for MNCs to invest in a country. In recent years, (Arif-Ur-Rahman & Inaba, 2021) the scale of MNCs' investment in Bangladesh has reduced because of the worsening relationship between foreign MNCs and their partners in Bangladesh. Due to this reason, the GDP per capita in Bangladesh has reduced compared to other Asian countries such as Vietnam, especially after 2017. Meyer (2015) denotes that cultural disintegration is a major problem behind workplace issues. Local leadership does not integrate international workplace ethics or standards or shows negligence resulting in a poor working environment leading to uncertain events or accidents. This issue further becomes complicated because of the absence of a communication structure between employees and top management resulting in poor performance and ending up as investment withdrawal.
An investigatory report from BBC News (2023) indicates that one of the leading reasons behind workplace issues in Bangladesh is the unprofessional behavior of MNCs' leadership as international brands exploit poor working conditions for their benefits. BBC's investigatory report "Fashion brands paid Bangladesh factories less than cost" indicates major brands were engaged in "unfair purchasing practices". This resulted in forced labor, extra unpaid working hours, and harassment in the form of job redundancy threats by the local leadership to meet targets and reduce their production costs. Such reasons contribute to workplace accidents resulting in human lives' losses. These are some of the reasons that reputed MNCs avoid investing in countries such as Bangladesh to avoid legal actions. Meyer (2015) denotes that the local working culture is always different from the international working culture; hence, organizations need to ensure that employees' concerns are heard and transparency is ensured. This might help to ensure foreign investment in the country. However, Professor Islam a leading researcher from Dhaka, Bangladesh who is the primary source of the BBC (2023) report asserts that "transparency is a big problem" and there is a need to ensure that employees are given their fair work rights and it's the primary principle of doing business ethically.
Prentice (2021, p. 1770) denotes that workers in Bangladesh receive "low wages" work for "long hours", and are forced to stay and work in "degraded conditions". Prentice further denotes that low wages of Bangladeshi workers always keep these workers on the subsistence level. Reza and Plessis (2022, p. 262) denote that in 2006 the average salary of a Bangladeshi textile worker was "US$ 14 per month" which was increased to "US$ 68 per month in 2014" and "US$95 in December 2019". Reza and Plessis further denote that low wages in the local market attract foreign MNCs to invest in Bangladesh as they can save money; however, at the same time, such low wage trends are a major issue for reputable MNCs to avoid investing in Bangladesh as these organizations might fear from accountability on avoiding fair-trade policies in their home countries.
The poor working conditions (BBC News, 2023) of employees is a major issue that contributes to work dissatisfaction, and demotivation resulting in decreased work engagement. The consultation of different theoretical propositions in previous sections especially in the governance issues section indicates that the absence (Yusha, 2018) of favorable work conditions, health and safety issues, and forced labor are certain problems that have damaged the reputation of Bangladesh’s ready-made garment industry. Most of the researchers (Prentice, 2021) have called workplace conditions in Bangladeshi business organizations miserable. In reality, some of the researchers (Painter et al., 2019b; Reza & Plessis, 2022) have identified a poor work environment as a CSR issue with deliberate exploitation of workers' work rights.
Health and safety are one of the most concerned aspects of administrative issues in Bangladeshi garment factories. Even historical fire incidents claimed thousands of workers' lives but little was done afterward to improve health and safety conditions in small, medium, and even in multinational organizations (Manik & Yardley, 2012; Syed, 2023). A lot of research has been done on the Rana Plaza arson that claimed almost 1134 workers' lives in 2013. Almost 2000 employees were burnt seriously in this arson. This incident took place because of poor working conditions. However, most of the labor amendments were done on paper only and workers were compensated a little more than the original announced funds by the governments. It was not the only incident but a series of similar types of incidents occurred in the past and after the 2013 arson. This situation cautioned MNCs to avoid investing in Bangladesh (International Labor Organization, 2015; Prentice, 2021; Reza & Plessis, 2022).
Reza and Plessis (2022) argue that some of the local MNCs do not comply with CSR procedures resulting in incidents such as the Rana Plaza arson. However, this issue is not limited to instant financial losses but results in reluctance from the international MNCs to avoid future investment in respective countries. Fagan (2018, pp. 13-14) denotes that CRS is not about profitability but "CSR involves four layers: to obey the law, ethical responsibility to act justly and fairly, and philanthropic responsibility to be a good corporate citizen and improve quality of life". However, all these principles seem absent in MNCs' partners or subsidiaries in Bangladesh. Akhter et al. (2019) denote that 80% of the workers are women working in Bangladeshi ready-made garment (RMG) factories and this industry contributes to 83% of Bangladeshi exports. Prentice (2021) denotes that international organizations and labor unions proposed US$ 71 million to compensate Rana Plaza victims and to ensure their proper medical care. However, MNCs and the Bangladeshi government pledged only "$30 million" and this compensation included their wages as well. Zimmermann (2022) denotes that the gender gap is a major problem and a global phenomenon. This issue exists to a larger extent among MNCs and little has been done to resolve this issue. As (Akhter et al., 2019) 80% of female workers work in Bangladeshi garment factories, they (Banks, 2013) cannot resist or confront the management and work in poor conditions. Fagan (2018) asserts that the presence of corporate accountability structure is essential to ensure workers' safety and this will help to improve workers' motivation and work engagement. Prentice (2021) believes that global MNCs often force local organizations to ensure speedy delivery of their orders at discounted rates. "The purchasing practices of MNCs pit garment factories against one another, disincentivising local employers from investing in factory standards" (P. 1770).
Porter's five forces model has always been considered a unique framework to gain competitive advantages in the market. However, the above-given framework is modified as per challenges that MNCs face especially Bangladeshi garment factories. Porter's bargaining power of buyers is a potential threat that has been modified with the bargaining power of employees. It is evident from the discussion that the garment purchasing MNCs (Prentice, 2021) force Bangladeshi organizations to produce low-cost products at discounted rates and this situation forces local organizations to invest little in workplace improvement to save revenue. The modified concept of bargaining power of employees is an initiative that can ensure improvement in workplace culture. Workers can demand improved workplaces, improved work conditions, flexibility, better wages, and certain incentives that might help meet their financial and psychological needs. It is a powerful element that might force garment factories in Bangladesh to think about the application of certain models or frameworks that might help to motivate workers to work with full potential to produce desired results. The application of (McShane et al., 2018) motivational theories can help MNCs and local garment-producing companies secure their money after they allocate certain incentives that are attractive enough to convince employees that their demands have been heard.
McKinsey 7S framework is a set of tools to analyze and understand the internal issues of an organization and how they help to achieve organizational goals. It includes analyzing the Organization’s strategy, structure, systems, skills, staff, style, and shared values (Kumar & Geetika, 2019; Razmi et al., 2020). Based on our thesis questions, the modified Porter's Five Forces model seems more appropriate because it focuses on external and internal factors that affect the financial risks of MNCs in Bangladesh. The modified concepts focus on specific issues such as diversity and creativity, employee-employer relationships, and workplace issues that are relevant to my research.
On the other hand, though McKinsey’s 7S framework focuses on the internal factors of an organization it may not provide the same level of analysis for these specific research issues. Therefore, while both models can be useful, the modified Porter's Five Forces model seems more appropriate for answering specific thesis questions related to leadership, financial risks, and employee engagement in MNCs in Bangladesh.
Although this model is about understanding competitors, suppliers, buyers, and substitute products (I have the opinion) it allows modifications to harmonize theoretical ideas for academic integrity. This research, thus, particularly focuses on finding a solution or possible solution to improve leadership performance and workplace culture to persuade MNCs to invest in Bangladesh
Most of the workplace issues (McShane et al., 2018) are related to two factors that include (1) the demotivation of employees because of different reasons and (2) organizational shirking from investing to improve workers' conditions. Herzberg's two-factor theory is one of the major sources that MNCs can use to fulfill employees' needs. McShane et al. (2018) further denote that Herzberg's theory indicates that employee satisfaction is concerned with motivation and hygiene. Organizations often believe that the fulfillment of workers' needs depends on how well they perform to accomplish their job tasks. However, in Bangladesh MNCs context poor work conditions, governance, and administrative issues are certain hygiene factors that cause demotivation among employees. This might result in financial insecurity for MNCs. Kun and Gadanecz (2022) denote that workplace happiness is largely associated with the application of motivational tools, theories, or frameworks because employees’ satisfaction is a serious matter. It is a fact that organizations tend to earn profit and secure their investments however; their actions do not support their business goals. This issue has predominantly been debated in BBC News (2023) report and in other research reports as well published on the Rana Plaza incident. Nilsen (2015) believe that employees' well-being is a major issue in Bangladesh and often results in work burnout. However, the management of local manufacturers seems neglecting employees' issues. Prentice (2021, p. 1770) called it a "degraded" situation. If employees leave their jobs how they will earn money? This is the question that Kun and Gadanecz (2022) have associated with motivational and well-being factors. According to Kun and Gadanecz employee satisfaction is a very complicated concept because it might be associated with attractive salary, social influence, family background & perceptions, personal attitude, caliber, and relationship with co-workers. These are certain aspects that are associated with psychological satisfaction. The understanding of these factors or issues is possible when the management of organizations applies motivational theories to minimize the bargaining power of employees.
A positive and strong relationship (Ismail & Hapsoro, 2020) between employees and employers is based on confidence, trust, and work values. A close professional interaction (Cooley, 2016) helps to improve the decision-making process resulting in improved performance and work engagement. Internal issues Kohli and Haenlein (2021) are related to the performance of different business processes and employees while (Huang & Huang, 2020) external factors are associated with market trends and certain pressures such as competition and political influence. The application of (Goyal, 2020) Porter’s five forces model in its original form without modification is a major source to gain competitive advantages from the market to ensure a stronger financial position. The application of (Bruijl, 2022) Porter's five forces model will help MNCs to understand external market pressures such as buyers, suppliers, new entrants, competitors, and the threat of substitute products. Goyal (2020) believes that an accurate estimation of all the factors that Porter highlighted in his five forces model can help organizations to improve external business approaches. However, the improvement in external business processes (Huang & Huang, 2020) is not possible unless organizations improve their internal capabilities and business processes. This means improving workplace issues can ensure improved work culture resulting in higher motivation among employees and enhanced worker performance. This is a way organizations might be able to attract MNCs to invest or make partnerships with Bangladeshi organizations. Thus, it is a dual-benefit scenario that secures investment for MNCs and funding opportunity for their business partners or subsidiaries.
The application of diversity and creativity is essential to earn profit from the market. However, it is also important that employees are given due attention by bringing change in organizational work structures or design. The integration of work culture ethics from the Bangladeshi market and combining these ethics with international work ethics can ensure good performance resulting in the financial stream. Cultural superiority is a major factor that forces organizations to ensure their legacy using the highest ethical standards to improve the work environment (Feder & Katz-Gerro, 2012; Schwarzmüller et al., 2017; Wiśniewska et al., 2020). Similarly, political pressure is a major element that always persuades MNCs to improve their organizational design to secure their investment (International Labor Organization, 2015).
Burton and Obel (2018) denote that organizational design has a major role in its performance because a convincing design ensures workers work in a collaborative environment. The coordination among all job tasks and business process depends on how convincing is the organizational design. Organizations should adopt scientific approaches as this will help to understand what needs to change, how it can be changed, and why it is necessary to change. Gupta et al. (2021) denote that merger and acquisition is another way to ensure diversity and creativity. It is a value-creation process that ensures learning from other organizations. The adoption of unique business culture or the application of certain business ethics helps to increase sales.
2.3.1.1 Understanding Employees’ Behavior and Needs.
Bird (2017) believes that the understanding of the internal business environment is essential especially the behavior and needs of employees as employees' improved job performance guarantees success for MNCs. Understanding employees' behavior means understanding their cognitive traits because there is a direct relationship between employees' behavior, their needs, and the workplace environment. Bird (2017, p. 647) acknowledges Kanter's concept of the 'Kaleidoscopic thinker' to associate it with a leader to ensure the change in organizational processes to overcome performance and financial risks. A 'Kaleidoscopic thinker' examines different issues in a relational context to "understand the structural determinants of individual behavior' (p. 647). Using such concepts and techniques, the leadership of an organization ensures 'perfectibility' in all the organizational tasks thus contributing to minimizing financial risks.Understanding employees' needs have been a problem in Bangladeshi MNCs, especially in the textile industry. Poor leadership is associated with this problem that resulted in financial losses for MNCs as well as risking employees' lives due to health and safety issues (BBC News, 2023; Prentice, 2021; Yusha, 2018).
Cremer and Vandekerckhove (2017) argue that understanding employees' needs is essential and for this purpose, the leadership of MNCs needs to apply ethical models that highlight employees' job responsibilities and the conditions they should avoid working. The presence of an ethical work model can help reduce conflicts between the leadership and employees resulting in improved performance. Leaders of MNCs need to apply the concept of employee well-being to better understand employees' needs and wants. Del Baldo and Baldarelli (2017) argue that a disagreement between managerial leadership and employees emerges when MNCs avoid the application of behavioral as well as work ethics models. The application of the behavioral model helps to understand certain factors that agitate employees and reasons employees shirk from work resulting in poor performance and ending up in financial losses for an organization. To avoid such a situation Cremer and Vandekerckhove (2017) believe that the understanding of context is important because certain contextual factors play a crucial role to shape employees' behavior.
Investigating the problems in the United States dance industry, Roepe (2016) denotes that poor performance is a common issue regardless of work or industry. It's a two-way problem and only employees cannot be blamed for the poor results. Understanding employees' needs is essential because monetary needs often lead employees to dissatisfaction with work. Roepe further argues that corporations tend to earn profit and it is the primary objective of organizations operating in different countries. To achieve this goal of earning profit (Del Baldo and Baldarelli 2017) organizations should ensure structural changes in their strategic management to ensure the presence of positive workplace culture.
2.3.1.2 Leadership Role to Improve Business Strategies.
Kafetzopoulos et al. (2022) denote that leaders play a crucial role to ensure strategic flexibility using their talent thus contributing to increased work performance. Using talent strategically to get the most out of workers' skills is one of the convincing aspects of the experienced leadership role. Farida and Setiawan (2022) argue that concepts such as performance and innovation are intervened. The dynamic condition of the international market forces MNCs to hire the services of experienced leaders who better understand when to use organizational resources for strategic advantages.Sageder and Feldbauer-Durstmüller (2019) believe that multinational companies ensure effective management control to ensure success. The primary purpose of using organizational leadership to ensure management control is to achieve organizational goals because these organizations operate across borders using local subsidiaries because employees working in these subsidiaries or partner organizations better understand the local working culture. The leadership of these subsidiaries or partner organizations is responsible for taking effective strategic decisions. However, these strategic decisions sometimes can be wrong and bring financial risks for MNCs.
To improve the strategic compatibility of MNCs (Schwarzmüller et al., 2017) organizations should opt for certain strategic initiatives that might attract foreign investors to invest in local businesses. However, it is essential to ensure the safety of stakeholders’ interests when planning such activities. The financial stability of MNCs as Rosenberger (2018) believes requires the presence of convincing leaders who can combine ethical and commercial factors to ensure business success. There is always a difference between the leadership vision and employees' visions; hence, to overcome strategic complexities it is essential to revisit different strategies to ensure unanimity in business strategies. A better understanding (Claudiu et al., 2011) of the external and internal environment is a major help to improve organizational strategies to stay competitive in regional and international markets.
2.4 Links Between Unfavorable Working Circumstances and MNCs’ Investment
Researchers identify two factors behind reduced foreign investment in any country. One is cultural differences and the second is poor workplace facilitation. These two factors contribute to increasing concerns for multinational organizations because these companies depend on local leadership to execute their business operations (Meyer, 2015; Yusha, 2018). However, for some researchers (Reza & Plessis, 2022) it is a matter of corporate social responsibility (CSR). The absence of CSR in subsidiaries or partner organizations often becomes the reason for investment halt. According to US Department of State (2022) statistics, Bangladesh is one of the countries actively interested in foreign investment, especially in the textile, power, healthcare, and pharmaceutical industries.Mahbub et al. (2022) believe that the geographic location of Bangladesh makes it an attractive place for MNCs to invest in the country. However, MNCs apart from the geographic location consider different aspects that are crucial to do business ethically. The institutional environment is one of the major factors that sometimes become a hurdle for MNCs to invest in a country. In recent years, (Arif-Ur-Rahman & Inaba, 2021) the scale of MNCs' investment in Bangladesh has reduced because of the worsening relationship between foreign MNCs and their partners in Bangladesh. Due to this reason, the GDP per capita in Bangladesh has reduced compared to other Asian countries such as Vietnam, especially after 2017. Meyer (2015) denotes that cultural disintegration is a major problem behind workplace issues. Local leadership does not integrate international workplace ethics or standards or shows negligence resulting in a poor working environment leading to uncertain events or accidents. This issue further becomes complicated because of the absence of a communication structure between employees and top management resulting in poor performance and ending up as investment withdrawal.
An investigatory report from BBC News (2023) indicates that one of the leading reasons behind workplace issues in Bangladesh is the unprofessional behavior of MNCs' leadership as international brands exploit poor working conditions for their benefits. BBC's investigatory report "Fashion brands paid Bangladesh factories less than cost" indicates major brands were engaged in "unfair purchasing practices". This resulted in forced labor, extra unpaid working hours, and harassment in the form of job redundancy threats by the local leadership to meet targets and reduce their production costs. Such reasons contribute to workplace accidents resulting in human lives' losses. These are some of the reasons that reputed MNCs avoid investing in countries such as Bangladesh to avoid legal actions. Meyer (2015) denotes that the local working culture is always different from the international working culture; hence, organizations need to ensure that employees' concerns are heard and transparency is ensured. This might help to ensure foreign investment in the country. However, Professor Islam a leading researcher from Dhaka, Bangladesh who is the primary source of the BBC (2023) report asserts that "transparency is a big problem" and there is a need to ensure that employees are given their fair work rights and it's the primary principle of doing business ethically.
2.4.1 Governance Issues
Governance (Boin et al., 2017) is a major issue that can damage the work environment resulting in financial losses. However, someone might think about how governance issues can stop an MNC from investing in Bangladesh. Boin et al. (2017) believe that it is a critical factor because MNCs always change their strategic initiatives. During this change, it is essential to focus on employees' needs to ensure harmony among all the business processes. This means a leader needs the help of strong decision-makers to avoid governance challenges. Employees often feel uncomfortable from changing work scenarios resulting in poor work performance. Ahmed (2022) denotes that most businesses close down in Bangladesh because of a "lack of corporate governance". The absence of a working structure, employees' work engagement issues, and wage issues are associated with governance issues. The following discussion will help to understand the diversity of governance issues that MNCs face in Bangladesh.2.4.1.1 The Absence of Work Structure.
Yusha, (2018) denotes that Bangladesh has a poor history of workers' rights and the evidence by the United Nations Human Rights Committee (UNHRC) witnesses this issue. Although the government claims that they have imposed health and safety standards; however, the practice of these standards is temporary and after a little while organizations ignore these standards. The absence of favorable work conditions, health and safety issues, and forced labor are certain problems that indicate the absence of work structure. These are certain issues that according to Boin et al. (2017) are related to unfavorable working environment. These issues are strong enough that might distract MNCs to invest in Bangladesh. Prentice (2021, p. 1770) identifies workers working without any working structure as a "sweatshop regime". Aisbett et al. (2021) denote that some of the MNCs know the grim working situation of workers in the respective countries where their products are manufactured; however, the leadership of these MNCs turns a blind eye to these issues. This type of exploitation defines exploitation as a violation of human rights. This situation contributes to "forced overtime, child labor, or discrimination" (p.260). Prentice (2021, p. 1774) denotes that fire incidents in Bangladeshi garment factories attracted the attention of global workers' rights organizations such as the "EU-based Clean Clothes Campaign, the US-based Worker Rights Consortium, and the global trade union federation". This situation made MNCs to ask their subsidiaries and partners to ensure the presence of an international work structure in Bangladesh because it is a matter of their investment security.2.4.1.2 Redefining Business Model to Ensure Employees’ Work Engagement.
To ensure financial security and to improve business performance national and multinational organizations require the presence of a unique business model that ensures the presence of ethical standards. Doing a business ethically means ensuring the presence of corporate social responsibility and caring for workers to ensure their work engagement (Painter et al., 2019b; Reza & Plessis, 2022). In a detailed discussion, Crane and Broome (2017) argued that the presence of ethical elements in a business model not only improves the operational capacities of organizations but it is a major source to improve work ethics and motivation among workers. This results in high work commitment. In the present dissertation context as the topic focuses on how MNCs can be persuaded to invest in Bangladesh and how the leadership can improve the overall working culture that sometimes hinders investment opportunities, the concept of ethical business model is relevant. The presence (Ismail & Hapsoro, 2020) of a unique business model with an integration of ethical work standards and making employees part of the decision-making helps to canvas a positive picture of the work environment for MNCs. The integration of employees in decision-making also improves their work engagement resulting in attractive workplace culture.2.4.1.3 Wages Issues.
Rosina (2015) denotes that employees' poor work performance is related to two concepts known as poor work environment and wage issues. Low salary is one of the potential factors that not only hinder personal performance but damages organizational performance as a collective factor. This means employees' performance will be negative if they work for the same organization which is unable to pay enough for their services. Prentice (2021) denotes that Bangladeshi labor has a history of neglect and the wages they get for their services are not enough to support their living expenses. One of the primary reasons behind this issue is the absence of a regulatory mechanism.Prentice (2021, p. 1770) denotes that workers in Bangladesh receive "low wages" work for "long hours", and are forced to stay and work in "degraded conditions". Prentice further denotes that low wages of Bangladeshi workers always keep these workers on the subsistence level. Reza and Plessis (2022, p. 262) denote that in 2006 the average salary of a Bangladeshi textile worker was "US$ 14 per month" which was increased to "US$ 68 per month in 2014" and "US$95 in December 2019". Reza and Plessis further denote that low wages in the local market attract foreign MNCs to invest in Bangladesh as they can save money; however, at the same time, such low wage trends are a major issue for reputable MNCs to avoid investing in Bangladesh as these organizations might fear from accountability on avoiding fair-trade policies in their home countries.
2.4.2 Administrative Issues
Administrative issues can be different and have the potential to disturb the financial outcome of any business. Poor working conditions, health and safety issues, motivation issues, work engagement, satisfaction, and flexibility issues are certain administrative problems that have caused not only financial losses to Bangladeshi MNCs but served as potential risks for other MNCs wanting to invest in Bangladesh. From 2010 onward, many of the changes have been introduced by the governments of Bangladesh; however, certain accidental incidents are strong enough to attract the attention of international MNCs and trade munitions to pinpoint the grim working situation of Bangladeshi garment factors (International Labor Organization, 2015; Manik & Yardley, 2012b; Syed, 2023). |
| Administrative Issues |
The poor working conditions (BBC News, 2023) of employees is a major issue that contributes to work dissatisfaction, and demotivation resulting in decreased work engagement. The consultation of different theoretical propositions in previous sections especially in the governance issues section indicates that the absence (Yusha, 2018) of favorable work conditions, health and safety issues, and forced labor are certain problems that have damaged the reputation of Bangladesh’s ready-made garment industry. Most of the researchers (Prentice, 2021) have called workplace conditions in Bangladeshi business organizations miserable. In reality, some of the researchers (Painter et al., 2019b; Reza & Plessis, 2022) have identified a poor work environment as a CSR issue with deliberate exploitation of workers' work rights.
Health and safety are one of the most concerned aspects of administrative issues in Bangladeshi garment factories. Even historical fire incidents claimed thousands of workers' lives but little was done afterward to improve health and safety conditions in small, medium, and even in multinational organizations (Manik & Yardley, 2012; Syed, 2023). A lot of research has been done on the Rana Plaza arson that claimed almost 1134 workers' lives in 2013. Almost 2000 employees were burnt seriously in this arson. This incident took place because of poor working conditions. However, most of the labor amendments were done on paper only and workers were compensated a little more than the original announced funds by the governments. It was not the only incident but a series of similar types of incidents occurred in the past and after the 2013 arson. This situation cautioned MNCs to avoid investing in Bangladesh (International Labor Organization, 2015; Prentice, 2021; Reza & Plessis, 2022).
Reza and Plessis (2022) argue that some of the local MNCs do not comply with CSR procedures resulting in incidents such as the Rana Plaza arson. However, this issue is not limited to instant financial losses but results in reluctance from the international MNCs to avoid future investment in respective countries. Fagan (2018, pp. 13-14) denotes that CRS is not about profitability but "CSR involves four layers: to obey the law, ethical responsibility to act justly and fairly, and philanthropic responsibility to be a good corporate citizen and improve quality of life". However, all these principles seem absent in MNCs' partners or subsidiaries in Bangladesh. Akhter et al. (2019) denote that 80% of the workers are women working in Bangladeshi ready-made garment (RMG) factories and this industry contributes to 83% of Bangladeshi exports. Prentice (2021) denotes that international organizations and labor unions proposed US$ 71 million to compensate Rana Plaza victims and to ensure their proper medical care. However, MNCs and the Bangladeshi government pledged only "$30 million" and this compensation included their wages as well. Zimmermann (2022) denotes that the gender gap is a major problem and a global phenomenon. This issue exists to a larger extent among MNCs and little has been done to resolve this issue. As (Akhter et al., 2019) 80% of female workers work in Bangladeshi garment factories, they (Banks, 2013) cannot resist or confront the management and work in poor conditions. Fagan (2018) asserts that the presence of corporate accountability structure is essential to ensure workers' safety and this will help to improve workers' motivation and work engagement. Prentice (2021) believes that global MNCs often force local organizations to ensure speedy delivery of their orders at discounted rates. "The purchasing practices of MNCs pit garment factories against one another, disincentivising local employers from investing in factory standards" (P. 1770).
2.5 Using Motivation Theories for Work Engagement and Investment Security
A business model needs to be performance-oriented and for this purpose, the use of motivation theories can assist to boost workers' motivation by knowing their needs. It is a fact that high motivation positively affects employees' behavior resulting in high job performance (McShane et al., 2018). However, along with motivation theories, the application of competitive advantage theories can help to improve the financial outcome of MNCs. Porter's five forces model is an example in this context that helps organizations to ensure a stronger position in markets after addressing their internal and external issue (Goyal, 2020).2.5.1 Resolving Workplace Issues Using Porter's Five Forces Model
It was noted in Chapter One that Porter's five forces model will be evaluated if it can be used to overcome workplace issues, improve external and internal strategic issues, and identify organizational and professional barriers. The following discussion is an attempt in this context to evaluate if MNCs can overcome these issues to ensure the safety of their investments. The following Figure is an attempt to modify some of the characteristics of Porter’s Five Forces model to harmonize the Porter’s model with present research topic. This might seem vague but it is an attempt to explain and highlight Bangladeshi Textile industry issues to resolve these issues. Refer to the Following Figure to understand to understand how modified Porter’s Five Forces Model might assist Bangladeshi garment organizations to overcome performance issues. |
| Porter's Five Forces Model |
Porter's five forces model has always been considered a unique framework to gain competitive advantages in the market. However, the above-given framework is modified as per challenges that MNCs face especially Bangladeshi garment factories. Porter's bargaining power of buyers is a potential threat that has been modified with the bargaining power of employees. It is evident from the discussion that the garment purchasing MNCs (Prentice, 2021) force Bangladeshi organizations to produce low-cost products at discounted rates and this situation forces local organizations to invest little in workplace improvement to save revenue. The modified concept of bargaining power of employees is an initiative that can ensure improvement in workplace culture. Workers can demand improved workplaces, improved work conditions, flexibility, better wages, and certain incentives that might help meet their financial and psychological needs. It is a powerful element that might force garment factories in Bangladesh to think about the application of certain models or frameworks that might help to motivate workers to work with full potential to produce desired results. The application of (McShane et al., 2018) motivational theories can help MNCs and local garment-producing companies secure their money after they allocate certain incentives that are attractive enough to convince employees that their demands have been heard.
2.5.1.1 Justifications for Selecting and Changing Porter’s Five Forced Model.
McKinsey’s 7S framework and Porter's Five Forces model can be used to analyze Organizational issues. However, both of these models have different focuses and applications. Porter's Five Forces model is generally used to analyze the external forces in an industry and determine the potential threats and opportunities for a company. These might include analyzing the bargaining power of buyers, the bargaining power of suppliers, the threat of new entrants, the threat of substitutes, and the intensity of competitive rivalry (Goyal, 2020; Kumar & Geetika, 2019).McKinsey 7S framework is a set of tools to analyze and understand the internal issues of an organization and how they help to achieve organizational goals. It includes analyzing the Organization’s strategy, structure, systems, skills, staff, style, and shared values (Kumar & Geetika, 2019; Razmi et al., 2020). Based on our thesis questions, the modified Porter's Five Forces model seems more appropriate because it focuses on external and internal factors that affect the financial risks of MNCs in Bangladesh. The modified concepts focus on specific issues such as diversity and creativity, employee-employer relationships, and workplace issues that are relevant to my research.
On the other hand, though McKinsey’s 7S framework focuses on the internal factors of an organization it may not provide the same level of analysis for these specific research issues. Therefore, while both models can be useful, the modified Porter's Five Forces model seems more appropriate for answering specific thesis questions related to leadership, financial risks, and employee engagement in MNCs in Bangladesh.
Although this model is about understanding competitors, suppliers, buyers, and substitute products (I have the opinion) it allows modifications to harmonize theoretical ideas for academic integrity. This research, thus, particularly focuses on finding a solution or possible solution to improve leadership performance and workplace culture to persuade MNCs to invest in Bangladesh
2.5.1.2 Using Motivation Theories to Improve Work Engagement.
The application of (McShane et al., 2018) Maslow's Hierarchy of Needs is a useful option to ensure excellence in job tasks and to improve work conditions by motivating employees. Understanding employees' psychological needs concerning the fulfillment of their financial and job security would enable organizations to bring change in their strategic options. The modified concept in the above-given Figure highlights the importance of using motivation theories to ensure work engagement in Bangladeshi garment factories. Giving employees (Aruma & Hanachor, 2017) things they need would surely increase their motivation resulting in improved work performance. The result will be in financial gains and investment security.Most of the workplace issues (McShane et al., 2018) are related to two factors that include (1) the demotivation of employees because of different reasons and (2) organizational shirking from investing to improve workers' conditions. Herzberg's two-factor theory is one of the major sources that MNCs can use to fulfill employees' needs. McShane et al. (2018) further denote that Herzberg's theory indicates that employee satisfaction is concerned with motivation and hygiene. Organizations often believe that the fulfillment of workers' needs depends on how well they perform to accomplish their job tasks. However, in Bangladesh MNCs context poor work conditions, governance, and administrative issues are certain hygiene factors that cause demotivation among employees. This might result in financial insecurity for MNCs. Kun and Gadanecz (2022) denote that workplace happiness is largely associated with the application of motivational tools, theories, or frameworks because employees’ satisfaction is a serious matter. It is a fact that organizations tend to earn profit and secure their investments however; their actions do not support their business goals. This issue has predominantly been debated in BBC News (2023) report and in other research reports as well published on the Rana Plaza incident. Nilsen (2015) believe that employees' well-being is a major issue in Bangladesh and often results in work burnout. However, the management of local manufacturers seems neglecting employees' issues. Prentice (2021, p. 1770) called it a "degraded" situation. If employees leave their jobs how they will earn money? This is the question that Kun and Gadanecz (2022) have associated with motivational and well-being factors. According to Kun and Gadanecz employee satisfaction is a very complicated concept because it might be associated with attractive salary, social influence, family background & perceptions, personal attitude, caliber, and relationship with co-workers. These are certain aspects that are associated with psychological satisfaction. The understanding of these factors or issues is possible when the management of organizations applies motivational theories to minimize the bargaining power of employees.
2.5.2 Reconsideration of External and Internal Strategic Issues
The solution to business problems especially concerning the leadership role and employees' engagement can be decreased to a minimum level by considering different strategic initiatives. The application of business theories especially motivational theories, competitive advantages theories, and finding new ways to do business can generate a positive impact on leaders and employees (McShane et al., 2018). Most of the issues are related to leadership and employee performance. To overcome these issues consideration of external and internal factors can help to improve business strategies. Transformational leadership is important; however, the change in strategic initiatives and working mechanisms largely depends on bringing change in the ways an organization operates (Khan et al., 2020). The concept of external and internal strategic issues as a replacement of Porter’s new entrants’ threats focuses on the application of diversity and creativity to overcome these challenges.A positive and strong relationship (Ismail & Hapsoro, 2020) between employees and employers is based on confidence, trust, and work values. A close professional interaction (Cooley, 2016) helps to improve the decision-making process resulting in improved performance and work engagement. Internal issues Kohli and Haenlein (2021) are related to the performance of different business processes and employees while (Huang & Huang, 2020) external factors are associated with market trends and certain pressures such as competition and political influence. The application of (Goyal, 2020) Porter’s five forces model in its original form without modification is a major source to gain competitive advantages from the market to ensure a stronger financial position. The application of (Bruijl, 2022) Porter's five forces model will help MNCs to understand external market pressures such as buyers, suppliers, new entrants, competitors, and the threat of substitute products. Goyal (2020) believes that an accurate estimation of all the factors that Porter highlighted in his five forces model can help organizations to improve external business approaches. However, the improvement in external business processes (Huang & Huang, 2020) is not possible unless organizations improve their internal capabilities and business processes. This means improving workplace issues can ensure improved work culture resulting in higher motivation among employees and enhanced worker performance. This is a way organizations might be able to attract MNCs to invest or make partnerships with Bangladeshi organizations. Thus, it is a dual-benefit scenario that secures investment for MNCs and funding opportunity for their business partners or subsidiaries.
The application of diversity and creativity is essential to earn profit from the market. However, it is also important that employees are given due attention by bringing change in organizational work structures or design. The integration of work culture ethics from the Bangladeshi market and combining these ethics with international work ethics can ensure good performance resulting in the financial stream. Cultural superiority is a major factor that forces organizations to ensure their legacy using the highest ethical standards to improve the work environment (Feder & Katz-Gerro, 2012; Schwarzmüller et al., 2017; Wiśniewska et al., 2020). Similarly, political pressure is a major element that always persuades MNCs to improve their organizational design to secure their investment (International Labor Organization, 2015).
Burton and Obel (2018) denote that organizational design has a major role in its performance because a convincing design ensures workers work in a collaborative environment. The coordination among all job tasks and business process depends on how convincing is the organizational design. Organizations should adopt scientific approaches as this will help to understand what needs to change, how it can be changed, and why it is necessary to change. Gupta et al. (2021) denote that merger and acquisition is another way to ensure diversity and creativity. It is a value-creation process that ensures learning from other organizations. The adoption of unique business culture or the application of certain business ethics helps to increase sales.
2.5.3 Resolving Organizational, Professional, and Industry Barriers
Hasan et al. (2020) denote that the identification of professional and industry barriers is essential to ensure sustainability in the Bangladeshi garment industry. One of the biggest problems behind the absence of sustainability is the less consideration of the poor working conditions of workers working in garment factories. In recent times, the nature of the garment industry challenges (Md. M. Hasan et al., 2018) has opted for a different shape that can be called an emblem of internal and external affairs. For instance, a decrease in garment orders from MNCs as an external issue might contribute to fear among employees who tend to job security, pay rise, and improved working conditions. This is how these issues become challenges and barriers for organizations to spend at two different levels. The availability of financial resources is a major challenge for Bangladeshi organizations. This situation contributes to professional, organizational, and workplace barriers. Md. M. Hasan et al. (2018) further denotes that different influential factors serve as barriers to the sustainability of MNCs business in Bangladesh. |
| Influential Factors as Barriers and Challenges to Business Sustainability |
2.5.3.1 Technology Adoption to Resolve Workplace Challenges.
Rachinger et al., (2018) denote that the adoption of technology might contribute to resolving workplace issues and other barriers/challenges that not only disrupt financial growth but cause investment security issues as well. The adoption of the digitalization process is a major source to ensure innovation in business processes and workplace culture. The ways of working on shop floors have changed and it is because of technology. However, (Prentice, 2021) in the Bangladeshi context the working conditions are still the same in most of the factories, and workers are forced to work in dingy places without any availability of basic needs.
Rachinger et al. (2018) believe that the adoption of technology will contribute to bringing improvements in garment factors at three different levels. These include the planning level, architectural level, and implementation level. The use of technology contributes at the strategic level, to the making of business models and to changing business processes. The whole concept is about "value creation, value proposition, and value capture" contributing to "dynamic capabilities for business model innovation" (p. 1148). Refer to the following Figure to understand how technology contributes to bringing innovation in workplace culture, and business strategies, and for the implementation of work improvement structure.
Krakowski et al. (2022) denote that competitive advantages are possible when organizations introduce innovation. In Bangladeshi workplace context, the demotivation factor among workers has multiple grounds because organizations have not introduced innovative infrastructures to improve the workplace culture. This has led to different complexities that have been discussed in earlier sections of this thesis.
Aisbett, E., Harrison, A. E., Levine, D. I., Scorse, J., & Silver, J. (2021). Do multinational corporations exploit foreign workers? In Global Goliaths: Multinational Corporations in the 21st Century Economy (pp. 259–300). Rowman & Littlefield Publishers.
Akhter, S., Rutherford, S., & Chu, C. (2019). Exploring the system capacity to meet occupational health and safety needs: The case of the ready-made garment industry in Bangladesh. BMC Health Services Research, 19(1), 435.
Rachinger et al. (2018) believe that the adoption of technology will contribute to bringing improvements in garment factors at three different levels. These include the planning level, architectural level, and implementation level. The use of technology contributes at the strategic level, to the making of business models and to changing business processes. The whole concept is about "value creation, value proposition, and value capture" contributing to "dynamic capabilities for business model innovation" (p. 1148). Refer to the following Figure to understand how technology contributes to bringing innovation in workplace culture, and business strategies, and for the implementation of work improvement structure.
2.5.3.2 Resources Analysis to Ensure Work Engagement.
The availability of resources (Mwai et al., 2018b) is a major concern for organizations to bring improvements in workplace culture. The effectiveness of business practices whether these are concerned with workplace culture or strategic initiatives depends on the strength of available resources. Akhter et al., (2019) believe that one of the biggest problems in the Bangladeshi garment industry is the absence of health and safety structures and despite having resources, MNCs and their partners/subsidiaries do not spend on this issue. This is the reason that incidents such as Rana Plaza's arson caused work disengagement among workers in most of the factories in Bangladesh. Using technology (Akhter et al., 2019; Rachinger et al., 2018) to address occupational health and safety needs can contribute to boosting employees' trust, and technology is a good source to overcome motivational and work disengagement barriers.2.5.3.3 Competitive Advantages Analysis.
Rosario-Maldonado, (2022) believes that to ensure competitive advantages, some organizations drain workers in every respect. People are knowledgeable, they are creative; hence their well-being is essential, especially in workplace culture context. Workers are the primary source to get competitive advantages and ignoring workers' needs mean poor sustainability in a business context. Porter and Kramer (2002) believe that "corporate philanthropy is in decline". Although, some organizations follow corporate philanthropy to secure their social and economic goals but these are a few. Corporate philanthropy is a contributory factor to boosting workers' engagement resulting in an improved work atmosphere. The work conditions in Bangladeshi garment factories in Prentice's (2021, p. 1770) words are like a "sweatshop regime". Debating on the concept of corporate philanthropy Porter and Kramer (2002) designed a model to explain "a convergence of interests". Refer to the following Figure to understand the concept of Employees' well-being in the context of corporate philanthropy.Krakowski et al. (2022) denote that competitive advantages are possible when organizations introduce innovation. In Bangladeshi workplace context, the demotivation factor among workers has multiple grounds because organizations have not introduced innovative infrastructures to improve the workplace culture. This has led to different complexities that have been discussed in earlier sections of this thesis.
2.5.3.4 Creating Value from Organizational Resources.
Competitive advantages can be generated from existing resources. However, for this purpose the use of employees' skills effectively is essential. This means the presence of strategic initiatives that not only improve leadership and employees relationship but contribute to an overall positive work environment (Banks, 2013; BBC News, 2023; Porter & Kramer, 2002; Prentice, 2021). To secure the financial investment, organizations need (Radomska & Kozyra, 2020) to identify the nature of barriers and ponder on their consequences. This will help to decide response efforts that are essential to overcome investment issues. Mansaray (2019) denotes its leadership responsibility to identify industry and professional barriers and the primary step in this regard (Shaw, 2016) is adherence to employees' demands. Organizations regardless of their scale and size (Bellerose, 2019) cannot ignore the need for having a strong strategic decision-making model because effective decisions contribute to financial gains, investment security, and the presence of a unique work culture resulting in employees' engagement and motivation.Summary
The risk of poor leadership results in employee disengagement, demotivation, and poor performance. The implementation of a supportive leadership structure in MNCs in the Bangladeshi garment industry context is important to understand workplace issues, employees' demands, and behavior to overcome strategic and workplace challenges. The presence of a strong governance model helps leaders to overcome work structure weaknesses, redefining of a business, and to resolve wage issues. Similarly, a focus on administrative issues can help organizations to improve poor working conditions. The discussion in the literature review sections indicates that the absence of a health and safety structure contributed to employee demotivation in Bangladesh. Arson incidents, dingy work places, and blackmailing from managers are certain factors that snub the rights of workers. The guidance to do business ethically requires organizations to ensure the presence of corporate social responsibility. This might help MNCs to ensure a positive work culture to secure their investments and contribute to an ethical business environment. Work engagement is one of the leading issues in Bangladeshi organizations and to improve workplace culture the application of motivational, competitive, and corporate philanthropy theories is essential. The reconsideration of strategic initiatives might help MNCs to overcome their strategic decision-making issues and careful consideration of this aspect would enable MNCs to evaluate the potential of external and internal strategic and environmental issues. The application of Porter's original five forces model and the modified model are certain considerable points that can help the Bangladeshi garment industry to overcome the absence of workplace diversity and creativity issues. It is essential to identify industry and professional challenges and barriers. The use of technology and resources analysis can contribute to gain competitiveness in MNCs' business operations resulting in profitability. This profitability as Porter and Kramer believe should be used to ensure corporate philanthropy for the well-being of employees and to improve work conditions. This will result in financial gains and a good number of MNCs will invest in Bangladesh seeing the productivity of Bangladeshi business market.References
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