Supply Side Dynamics of Light Engineering: Perspectives from Bangladesh

Contributing Author(s)

Foyez Uddin Ahmed
Doctoral Candidate,
Institute of Business Administration, University of Dhaka, Bangladesh  

Sheikh Morshed Jahan
Associate Professor,
Institute of Business Administration, University of Dhaka, Bangladesh  

Citation: Ahmed, F. U. & Jahan, S. M. (2017). Supply Side Dynamics of Light Engineering: Perspectives from Bangladesh. International Journal of Business & Management (Toronto), 4 (1), 1-10.


Abstract

Using existing prefabricated products to produce spare parts (i.e., castings, dices, oil and gas pipeline fittings and light machinery), the Light Engineering (LE) sector plays a major role in the manufacturing sector, especially in  developing countries. This industry mainly operates as a Business to Business (B2B) industry with major consumers being industries from power generation, consumer goods, agriculture, construction companies and so on. In a developing country such as Bangladesh, the LE industry contributed 1.5% in export earnings in 2016 and thus serves as a supporting “sub-industry” for economic development. However, the sector is often criticized as being underutilized; starting from raw material procurement to delivering final products to consumers.

Using a structured questionnaire from adapted scales, the study assesses the major constraints faced by the industry (from the perspective of supply procurement) and addresses the supply dynamics of LE sector through product offerings (practice, prospects and challenges) and challenges to stakeholders. The instrument was distributed to 120 respondents and gathered 100 usable responses for further analysis.

The study contributes to existing body of literature by providing a focal supply dynamics the LE industry rather than a generalized overview as present in existing literature.

Key words: Light Engineering (LE), Supply side dynamics, Business to Business (B2B), Bangladesh