Unlocking the business performance of ready-made garments industry: empirical evidence from an emerging country

Purpose While existing literature acknowledges the importance of top management support for organisational success, the specific mechanisms through which it enhances business performance remain underexplored, particularly in emerging economy contexts. Prior studies have predominantly examined the direct relationship between top management support and business performance, overlooking the underlying pathways through which this relationship operates. Addressing this gap, this study investigates how continuous process improvement and workforce commitment mediate the relationship between top management support and business performance in Bangladesh's ready-made garments (RMG) sector. Design/methodology/approach This study adopts a quantitative, cross-sectional research design. A self-administered survey questionnaire was employed to gather data from employees working in various ready-made garment factories in Bangladesh. A total of 367 useable responses were collected from employees directly involved in the production process. Partial least squares structural equation modelling (PLS-SEM) was used to assess construct validity and reliability and to test the hypothesised direct and indirect relationships. Findings The findings indicate that top management support, continuous process improvement and workforce commitment positively influence business performance in the RMG sector. Among the three factors, workforce commitment has the highest effect on business performance (ß = 0.274), followed by continuous process improvement (ß = 0.248) and top management support (ß = 0.165). Additionally, the results suggest that continuous process improvement and workforce commitment partially mediate the relationship between top management support and business performance. The model explains 29.9% of the variance in business performance. Practical implications The study's findings provide valuable guidelines for practitioners and policymakers to implement necessary initiatives that enhance business performance in the RMG sector. Given that workforce commitment has the strongest influence on business performance, managers should prioritise employee engagement, motivation and retention strategies. Additionally, the findings are expected to assist industry actors in ensuring that management practices improve continuously and promote workforce commitment. Originality/value This study fills a critical gap in the literature by uncovering the mediating mechanisms, namely continuous process improvement and workforce commitment, through which top management support enhances business performance in the RMG sector. Through the extension of the application of the theory of constraints (TOC) to this context, the study develops and empirically tests a novel model that demonstrates how leadership actions are transmitted through process-level improvements and employee-level commitment to influence performance outcomes. This research offers industry leaders and policymakers a strategic framework to improve business performance and strengthen competitiveness in the global market.