Influence of Supply Chain Agility on Profitability: Evidence from Pakistan
Evidence from Pakistan
Abstract
Purpose – This study aims to explore the influence of factors associated with the supply chain agility (SCA) on the profitability of the textile industry. After reviewing the available theoretical foundations in the relevant field, the influencing factors were found including SPD, responsiveness, competence and flexibility to impact on organizational profitability.
Research Design & Methodology – The study utilized quantitative design by using an adapted questionnaire (having 30 items and 5 constructs including Responsiveness (RSP), Speed (SPD), Flexibility (FLEX), Competence (COMP), and Profitability ( PROF) to collect data from the target population. The gathered data was then analyzed by employing regression test on Smart PLS.
Findings- The results suggested a negative and significant relationship between speed and profitability. This means that speedy processes actually decrease profitability. Moreover, this study found a positive and moderate effect of flexibility on profitability. Others two i.e. competence and responsiveness doesn’t seems to have a significant effect of profitability
Implications – The study implies that speed is negatively effecting the production of textile industry. Therefore textile companies should focus more on quality of production.
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