Innovation Strategies for Textile Companies in Bangladesh: Development Using Quadrant Analysis Based on a Productivity Index

Abstract

Bangladesh currently occupies a vital place in the textile industry, but it is beset with critical problems, such as insufficient infrastructure, low labor efficiency, and the lack of awareness regarding innovation and political volatility among CEOs. To overcome this crisis, an essential task is to measure the performance of individual companies because of the reality that “what you measure is what you get”. In consideration of these issues, this study developed a research framework on the basis of quadrant analysis and the Malmquist productivity index to capture the overall situation of Bangladeshi textile companies and provide useful information. The framework was then used to establish innovation strategies for such companies. The results of case studies indicated that even though improvements to the internal efficiency of these companies are sufficient, most of them need to innovate technology and policy. Applying the research framework to various fields can advance the formulation of optimized strategies tailored to a given company.