Abstract
Digital transformation is reshaping the global value chain, but the sustainability and implications of digital transformation on labor-intensive Global South industries have been under-theorized. This paper analyzes the ready-made garment (RMG) industry of Bangladesh and proposes the notion of digital-sustainable upgrading to demonstrate how ERP systems, IoT monitoring, and automation can be applied in conjunction with the environmental optimization and restructuring of the workforce. Based on semi-structured interviews with the senior managers & directors at a leading Bangladeshi manufacturer, triangulated with sectoral sustainability reports, this study discusses the effects on operational efficiency, resource utilization, and environmental performance, and consequences to worker inclusion, including gendered effects of automation. This study perceives the opportunity and issues in streamlining digital systems to sustainable and inclusive practices through the lens of systems thinking. The results come up with industry-wide practical suggestions to the leaders and policymakers on how to enhance the environment and socially friendly development in the RMG sector. The paper advances a conceptual framework to inform comparative debate and future mixed-method research on just transition pathways.