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THE IMPACT OF SUPPLY CHAIN MANAGEMENT PRACTICES ON

ORGANIZATIONAL PERFORMANCE OF TEXTILE INDUSTRY.

Thesis · January 2020

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THE IMPACT OF SUPPLY CHAIN MANAGEMENT PRACTICES ON
ORGANIZATIONAL PERFORMANCE OF TEXTILE INDUSTRY

Waqas Nawaz

32681

02-321182-009

A Thesis submitted to Department of Management Sciences,

Bahria University – Karachi Campus, in part fulfilment of the requirement for
the MBA Degree

Fall 2019

Supply Chain Management

Bahria University, Karachi Campus

 Fall 2019 REG # 32681

MBA Thesis 2nd Half-Semester Progress Report & Thesis

Approval Statement

Supervisor – Student Meeting Record

S# Date Place of Topic Discussed Signature of

Meeting Student

APPROVAL FOR EXAMINATION

Candidate’s Name: Registration No.:

Thesis Title:
I hereby certify that the above candidate's thesis has been completed to my satisfaction and, to
my belief, its standard is appropriate for submission for examination. I have also conducted
plagiarism test of this thesis using HEC prescribed software and found similarity index at ___
that is within the permissible limit set by the HEC for the MBA thesis. I have also found the
thesis in a format recognized by the Department of Management Sciences.

Date:
Supervisor’s Signature:

Supervisor’s Name:

HoD’s Signature: Date:

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Declaration of Authentication

I, hereby, declare that no portion of the work referred to in this thesis has been submitted in
support of any application for another degree or qualification of this university or any other
institution of learning.

Student’s Signature: ________________________

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Turnitin Similarity Report

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Dedication

I would like to dedicate my research work to my friends, my teachers and my family; they

are the one who supported me throughout this study. I am thankful to them for their guidance

and support in all phases of my academics and my personal life.

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Acknowledgement

First of all, I would like to thanks Allah Almighty for his countless blessings and then I

would like to thanks my family and friends for their support throughout this research work.

I would like to acknowledge deepest thanks to my thesis supervisor Sir Zeeshan Ali for his

endless support, kind supervision and guidance throughout this research. His fruitful

guidance and support helped me putting this work at its best.

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Abstract

Purpose

The main objective of this study is to investigate the effects of supply chain management on

the performance of organizations in the textile firms of Karachi, Pakistan.

Methodology & Design

The methodology included quantitative approach, explanatory type, correlational design,

convenience sampling and multiple linear regression analysis.

Findings

The study found that strategic supplier partnership; customer relationship, level of

information sharing and quality information sharing were all significantly affecting the

organizational performance except postponement.

Limitations

Since there were only limited observations (211 responses), in this study the revalidation of

variables was not done. Secondly, there is complex SCM concept and that includes

companies’ network to produce and deliver final output, thus the overall domain cannot be

studied in one research.

Recommendations

The managers are recommended to improve the performance of organization by developing

the relationship with supplier. The managers are also recommended to build a clear way of

communication and collaboration among supplier and customer to be successful.

Keywords

Strategic Partnerships, Quality of Information Sharing, Postponement, Organizational

Performance.

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Table of Contents
MBA Thesis 2nd Half-Semester Progress Report & Thesis Approval Statement ...................... i
Declaration of Authentication ................................................................................................... ii
Turnitin Similarity Report........................................................................................................ iii
Dedication ................................................................................................................................ iv
Acknowledgement .....................................................................................................................v
Abstract .................................................................................................................................... vi
CHAPTER 1 ..............................................................................................................................1
INTRODUCTION .....................................................................................................................1
1.1 Background of the study............................................................................................1
1.2 Problem Statement ....................................................................................................2
1.3 Research Objective ....................................................................................................3
1.4 Research Questions ...................................................................................................3
1.5 Significance of the study ...........................................................................................4
1.6 Scope of the Study .....................................................................................................5
1.7 Organization of the Thesis ........................................................................................5
CHAPTER 2 ..............................................................................................................................7
LITERATURE REVIEW ..........................................................................................................7
2.1 Customer Relationship ..............................................................................................7
2.2 Quality Information Sharing .....................................................................................7
2.3 Level of Information Sharing ....................................................................................8
2.4 Postponement ............................................................................................................8
2.5 Strategic Supplier Partnership ...................................................................................8
2.6 Organizational Performance ......................................................................................9
2.7 Customer Relationship and Organizational Performance .........................................9
2.8 Quality Information Sharing and Organization Performance .................................13
2.9 Level of Information Sharing and Organizational Performance .............................16
2.10 Postponement and Organizational Performance .....................................................18

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2.11 Strategic Supplier Partnership and Organizational Performance ............................20

2.12 Research Hypotheses ...............................................................................................23
2.13 Conceptual Framework ...........................................................................................24
CHAPTER 3 ............................................................................................................................25
Research Methodology ............................................................................................................25
3.1 Research Approach & Type ....................................................................................25
3.2 Research Design ......................................................................................................26
3.3 Research Population ................................................................................................26
3.4 Sample Size & Sampling Technique .......................................................................26
3.5 Research Instrument ................................................................................................27
3.6 Data Collection ........................................................................................................27
3.7 Data Analyses Method ............................................................................................28
CHAPTER 4 ............................................................................................................................29
Results ......................................................................................................................................29
4.1 Respondent Profile ..................................................................................................29
4.2 Reliability Analyses ................................................................................................30
4.3 Hypothesis Testing ..................................................................................................31
4.4 Summary of Hypothesis Testing .............................................................................31
CHAPTER 5 ............................................................................................................................32
Discussion ................................................................................................................................32
5.1 Discussion ...............................................................................................................32
CHAPTER 6 ............................................................................................................................35
Recommendations and Conclusion ..........................................................................................35
6.1 Recommendations ...................................................................................................35
6.2 Limitations of the Research .....................................................................................38
6.3 Future Research .......................................................................................................38
6.4 Conclusion ...............................................................................................................39
References ................................................................................................................................40
APPENDIX ..............................................................................................................................46

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LIST OF FIGURES

Figure 1 Conceptual Framework ............................................................................................ 23

LIST OF TABLES

Table 3.4-1 Summary of Research Instrument ....................................................................... 26

Table 4.1-1 Respondent Profile .............................................................................................. 28
Table 4.2-1 Reliability Test .................................................................................................... 29
Table 4.3-1 Multiple Regression Analysis.............................................................................. 30
Table 4.4-1 Summary of Hypotheses Testing......................................................................... 30

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LIST OF ABBREVIATIONS

SCM Supply Chain Management

CRM Customer Relationship Management

IQ Information Quality

SQ Service Quality

IS Information Sharing

SSP Strategic Supplier Partnership

OP Organizational Performance

SOQ Service Outcome Quality

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CHAPTER 1

INTRODUCTION

1.1 Background of the study

For the performance improvement as well as to stay competitive in the market, the most

important and valuable way is to have efficient supply chain management. Through this way,

the firms remain competitive in the market since there is a great competition of SCM among

organizations. In the era of early 1990's, the global market came under great competition in

order to provide right product or services at a right time and right place. The textile industry

organizations all over the world have got competitive now in local market and the work tasks

should be accomplished to increase overall effectives of the textile firms and its supply chain.

Thus for this purpose, now the textile organizations have to understand the concepts and

practices of supply chain management in order to increase the competitiveness and overall

profit (Hussain et al., 2018).

The management of supply chain involves culture, vision, strategy and process to manage the

best possible flow of money value, quality and other components from innovative and

reliable resources and suppliers and then delivering to customers the products of high quality

that they produce at a very competitive price. The importance of supply chain management

of textile industry has increased since it is now known as an important tool and driver for the

striving textile organizations to gain success in high competition (Agus, 2015).

Further, along with the development in communication and information technologies, it has

also become a challenge to provide and share information in a real time as this element has a

great effect on the overall supply chain performance in textile. The main elements of success

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are now reduction in overall cost, good cooperation and effective collaboration. Thus, the

concept of efficient information sharing can improve textile industry and its supply chain

performance (Rached et al., 2015).

On the other side, CRMS plays a very important role for business and this is being used by

the employees of different companies very actively for their customer management. CRMS is

important for many different reasons like it provides an easy access to the collective

information. The system also provides universal information that helps achieving textile

organizational goals. CRMS can be used as a strategy of business to maintain customer

relationships effectively (Al-Weshah et al., 2019).

1.2 Problem Statement

The continuous variations also entail that the organizations work with the increase volume

and great information diversity. Thus the organizational managers have great concerns with

the quality improvement in information that they have for taking decisions and planning

purpose. Majority of the companies also have to target the changing needs of customers and

the instabilities of environment but many disturbances can damage production and its

process, just like the changes in demand pattern, break downs of machines, fluctuations in

finances and many others. Thus the variable of uncertainty should also be focused (Sagawa

& Nagano, 2015).

Further firms are increasingly adopting the strategic supplier partnership in order to develop

inter-organizational collaboration in their supply chain. There occur some main challenges

and also some successes that all are connected with the way they handle and administer the

inventory level. It also depends on how it affects the satisfaction of customers since it

remains unknown that how the collaboration of partners and companies with different

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marketers and suppliers affect organizational performance and the supply chain (Wafula &

George, 2015). Organizations are encouraged to share information but due to uncertainty in

the match of demand and supply, and also due to the benefits and costs of the firms, there

might be changes in information sharing. This brings a barrier in adopting a sustainable

business based on information sharing (Fraccascia & Yazan, 2018).

However, it has become an urgent issue for the organizations to select a suitable strategy of

postponement in order to administer some of their main risks related to the information

uncertainty. Under this condition, the decision makers call only those workers who are

experienced and have expertise in the evaluation of the belief degree (Dong et al., 2019). So

far, an in-depth investigation has not been conducted on the degree of support given by

online platforms to the IS relationships. This is so because it is really problematic to assess

the assessing the real contributions of these elements (Fraccascia & Yazan, 2018). Although,

the current scenario has been studied previously around the world but it has not been studied

in depth or few studies in Karachi, Pakistan and especially in the context of textile industry

of Karachi, Pakistan.

1.3 Research Objective

The main objective of this study is to investigate the effects of supply chain management on

the performance of organizations in the textile firms of Karachi, Pakistan.

1.4 Research Questions

What is the effect of supply chain management practices on performance of organizations in

textile firms of Karachi, Pakistan?

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1.5 Significance of the study

This study aims to investigate a model describing an association between organizational

performance and their supply chain management practices. SCM practices are known as the

activities performed by organizations to management its supply chain practices effectively.

This study focuses on different and diversified supply chain management aspects. However,

due to the lacking of formal model, inclusion of these activities to the downstream as well as

the upstream level and connecting these activities to the organizational performance as well

as to the competitive advantage was not possible in previous studies.

In this study, it is assumed that by studying practices of supply chain management from the

downstream and upstream sides, will help practitioners as well as the researchers to

understand in a better way the extent and actions related with the supply chain management

and also it would enable the researchers to study the supply chain management’s

consequences. By providing a valid model to study the supply chain management practices

and by developing empirical findings of the effects of supply chain management on the

competitive advantage and performance of organizations, it is assumed that this study would

provide some beneficial guidance to study and apply SCM practices in firms and to assist

further to have research in this area.

Adding to this, by providing a measure with multi dimensions of building SCM practices and

by defining its overall efficiency to improve organizational performance and to attain

competitive advantage, this study given SCM managers some important tools for the

evaluation of comprehensiveness of current practices of supply chain management.

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1.6 Scope of the Study

The SCM practices provide many different concepts that include upstream as well as

downstream segments of the supply chain. This study includes the variables of customer

relationship, strategic supplier partnership, quality information sharing, and level of

information sharing, organizational performance and postponement. Operational measures

for the variables were empirically designed and analyzed by utilizing data that was collected

from the respondents of a survey. The study’s anticipated size of the sample is 211 that were

collected from target population of the textile industry of Karachi, Pakistan. The

hypothesized relationship was studied through Structural equation modeling.

1.7 Organization of the Thesis

The current thesis has been divided into following chapters.

Chapter 1 Introduction: This chapter comprised of background, problem statement,

research objective and question, significance and scope of the study.

Chapter 2 Literature Review: This chapter encompasses description of the variables,

theoretical linkages between variables, and reviewing of the literature.

Chapter 3 Methodology: This chapter discusses different research methodology including

research design, sampling design, data collection instrument, and data analysis technique.

Chapter 4 Results and Findings: This chapter provides results and findings of the study

including demographic profile of the respondents, measurement model, and structural model.

Chapter 5 Discussions: This chapter deals with the critical debate of the results and findings

based on the past studies.

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Chapter 6 Conclusion and Recommendations: This is the last chapter of the thesis and it

mainly focuses on providing conclusive remarks, practical and managerial recommendations,

limitations of the study and future research directions.

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CHAPTER 2

LITERATURE REVIEW

2.1 Customer Relationship

The concept of customer relationship (CR) is based on the aspect that how much the

customer is satisfied from services and in what manner and to what extent their complaints

about the products are being handled to continue their loyalty and to meet their expectations

perfectly (Hussain et al., 2018). Moreover, firms specifically told their management to

emphasize on developing CR in order to make them engage in their services and achieve

high satisfaction and experience of customers (Wang & Kim, 2017). According to (Al-

Weshah et al., 2019) positive CR helps managers to boost their business and build a strong

foundation on this basis and eventually improve organizational performance.

2.2 Quality Information Sharing

The aspect of information quality (IQ) is a very essential element in today’s manufacturing

world. The pure concept is to provide customers with valid and diversified information which

could help customers to get a clear picture and access to their products (Sagawa & Nagano,

2015). Also, IQ is believed to increase performance of firms by providing a detail

representation of the services (Fauver et al., 2017). In addition, IQ is also referred to the

firm’s level of merit in the context of information and it has also been proved to be a

motivating factor for customers to buy a certain product because it helps in achieving their

task depending on valid information (McKnight et al., 2017).

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2.3 Level of Information Sharing

The term information sharing (IS) is defined as the movement or transferring of information

regarding the product to other partners of manufacturing firms (Khan & Siddiqui, 2018).

Also, according to (Rached et al., 2015) the presence of IS known as a vital element in

manufacturing firms because it helps in giving a clear picture to the partners on daily basis

and increase SC performance at a great extent. Moreover, it has been known that increase IS

reduces logistics cost and increase connectivity and willingness to perform better.

Additionally, IS believed to be necessity in gaining knowledge which can further enhance

operational performance of SC and as a result increases overall performance of SC (Marinagi

et al., 2015).

2.4 Postponement

The basic concept of postponement is defined as the way of manufacturing firms to tackle

different risks or problems in SC and further enhance their performance by increasing profits

(Simão et al., 2016). Furthermore, there are many strategies of postponement which like full

postponement in which all the services or decision making have been postponed until further

notice (Dong et al., 2019). In addition, implementation of postponement strategies varies

from different requirements of the SC because some of these strategies might affect the

performance level of SC in a negative manner and decrease their gaining of profits (Saghiri

& Barnes, 2016).

2.5 Strategic Supplier Partnership

It is defined as the prospect of SC in which it develops loyalty, trust and integration to work

with collaboration between the partners to have a long term sustainable performance and as

well as the customers (Agus, 2015). Moreover, according to (Fauziah et al., 2019) the term
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SSP defines a contract between the supplier and buyer to be on the same page regarding the

production and demand of the products which eventually help to increase the operations and

SC performance.

2.6 Organizational Performance

This term refers to the aspect that how the company is able to achieve their goals in the

market and also intrinsic goals (i.e., operational performance) (Tzokas et al., 2015). The

increase amount of productivity with the help of low cost and enhanced profit gaining is

known as essential element in achieving (OP) organizational performance (Hussain et al.,

2018). Also, the role of OP is gaining much attention nowadays as firms want to create

innovative capabilities in increasing their performance. The new paradigm in order to be a

successful organization is to adapt those abilities which can develop variety of products with

minimum efficiency (Al-Weshah et al., 2019).

2.7 Customer Relationship and Organizational Performance

Tzokas et al. (2015) conducted a research study in this regard to investigate the relationship

between absorptive capacity of a firm and its technological capability and also its association

with customer relationship capability of the firm that adds to the overall firm’s performance.

For this study, data was collected through survey method. There were 158 sample firms

involved in this study and total 316 questionnaires were distributed in the semiconductor

industry of South Korea. Collected data was analyzed through MPlus Exploratory Structural

Equation Modeling. The analysis results showed that absorptive capacity of a firm develops

performance of a firm as it helps developing new products, improving market performance

and enhancing profitability of the organization when this absorptive capacity is applied along

with the capability of the firm to involve updated technology in the program of new product

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development. This is termed as firms’ technological capability. Further the performance of

organization is improved through absorptive capacity of firm, when strong association with

customers is developed in order to gain information related to the customer relationship

capability. This study is helpful to provide information regarding the role and impact of

absorptive capacity to utilize external knowledge for tangible gains in the high tech small and

medium enterprises.

Hingley et al. (2015) added to this level headed discussion by recognizing an extraordinary

open door for joint effort to favour this movement in the retail basic need area; that is,

coordination specialist organizations connected with by the retailers or purchasers can be a

middle person to interface with providers. The delegate part in class administration or super-

go between situations is alleviated by the retailer's vertical control, however a 4PLisan 'legit

agent' and in this way offers a system for co-appointment that is less commanded by channel

and system strategic manoeuvres.

Day and Lichtenstein (2006) describe the different attributes of SM as this imitates the

necessity related to the activities which are measurable. The outcomes of SM help in

hypothesis which has analysed with a significant involvement in confirming the significance

by procurement practice in organizations performance where strategic association amidst

business unit and procurement practices strategy.

Gharakhani et al. (2012) examined the influence of SCM practices on firms’ managerial

performance and innovation in Iranian Firms. People who responded know the SCM. 186

people who responded, they were belongs to middle level managers and higher management

level designated officers like CEO and directors in different services: related to managing

money team, planning is essential for moving supplies and people where it is required,

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marketing and production workers in general hiring, training, and firing department. SCM

practices measurements questions involved, invention of new things firms’ managerial

performance and performance using a Likert scale which has 5 point. This research tries to

explain the associations amongst the practices of SCM, invention of new things and firms’

managerial performance. It displays the means, standard surprising mistakes, and

relationships of all numbers that change/things that change. The results of moving backward

investigation related to/looking at thinking about the impact of SCM practices on firms’

managerial performance.

Adjei et al. (2009) investigated the associations in Small Retailers with the contexts to

comprehend the value of connection of marketing educated guesses were inspected in a data

which is consists of small stores in U.S which are less than 100 workers and less than $3.6

million in once-a-year money/money income. Although this study has some limits such as

focus on a data collected, particular ability and employment of interactive targets from many

respondents, this research has basically focused to the moving ahead or up of research on this

topic.

Hussain et al. (2018) examined and investigate the influenced of the supply chain on the firm

performance in the Textile sectors. Data was collected from the textile sectors and the target

population was the managers. 30 questionnaire distributed among the managers which have

the great knowledge related to the supply chain and it is influenced on the performance of the

textiles sectors, they gave us positive responded. In this study we found results are to

describe that SCM was not only the impact on the performance of the organizations but also

the competitive advantage of the organizations. They were supposed to improve their quality,

new product innovation, less per unit cost. In this study the level of the competitive

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influenced was the higher there was the higher performance of the organization. SCM can

have the contextual elements like location of the company, length of the SC, organization

size and types of business.

Wang and Kim (2017) examined that social media can helped firms was to build new

customer relationship capabilities and also was to improved marketing strategies as well as

the business performance. Social customer relationship capabilities, firm performance, social

media usage and customer engagement were used in this study. Data was collected from the

232 companies was using Facebook. In this study they used STATA in data analysis and

techniques. In this study we found some results that the CRM are positively impact on the

customer engagement and also the social CRM capabilities are positively impact on the

business performance. Customer engagement has also the positive impact on the business

performance.

Al-Weshah et al. (2019) examined and investigate the role of the customer relationship

management systems on the telecommunication organization performance. 300

questionnaires were distributed but the actual and valid data was received only 140. In this

study CRMS was based on the four dimensions i.e. information quality, user satisfaction and

system quality and system usage. Results have found no significant impact CRMS on the

telecommunication organization performance, there is no significant impact on the systems

quality on the telecommunication organization performance and there is no significant

impact system usage on the telecommunication organization performance.

Tzokas et al. (2015) aim was too focused on the transaction between the firm absorptive

capacity and technological and the customer relationship capabilities was to increased their

performance. Technological capability, absorptive capability, customer relationship

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capability and overall performance were used as variables. 316 questionnaires were

distributed in 158 company’s two respondents in each firm from the South Korea. The results

found that technological capability has positive relationship on the absorptive capacity,

customer relationship has positive relationship with the absorptive capacity, technological

capability has a positive relationship on the performance and customer relationship has a

positive relationship with the performance.

Haislip and Richardson (2017) examined on the relationship between customer and an

organization. The main purpose was to analyze how the implementation of customer

relationship benefits firm’s sales, customer satisfaction and their overall performances. The

number of firm’s identified as CRM was 138 but after removing some of the firm only 87

were remained. The results show that by implementing CRM in these firms, results were

significant towards their sales and business. Also, it showed a negative effect on selling

general and administrative expenses (SGA). In addition, these firms improved their

operations, efficiency and more prediction to earn. The findings revealed that by

implementing CRM firms can not only increase their development of products or increase in

sales but also decrease their expenses used in the process.

2.8 Quality Information Sharing and Organization Performance

Integration was of immense importance in firms and information quality was the main

element that could increase integration and overall firm performance. Also, the

understanding of this aspect was found lacking. Therefore, Sagawa and Nagano (2015)

investigated the relationship between firm and its information quality. More specifically, it

focused on the variables of integration, uncertainty, information quality (IQ) and the

performance of firm. It also included backdated researches to know about old concepts of

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these variables. Furthermore, the results or review of previous studies showed that the above

mentioned variables integration and performance was widely analyzed and therefore this

study lacks the relationship between IQ and integration. In addition, some of the results from

previous studies show that IQ was an important element to predict the integration and overall

performance of firm.

Fauver et al. (2017) focused on analyzing the effect of implementation of market abuse

directive (MAD) and prospectus directive (PD) on seasoned equity offerings (SEOs). It

included firms from 18 countries and the data was collected from 1999 to year 2012. The

results confirmed that almost every firm manages their earnings during the period of SEO so

a positive and significant result was gained. In this study earning management was used as a

proxy for information quality and it meant that firms who were having upwards increase in

earning showed poor information quality during SEOs. Additionally, the results of

implementing MAD and PD around European and non-European countries was found

negatively and significantly affecting earning management (increase) during SEOs.

McKnight et al. (2017) aimed to examine the impact of different types of quality in business

to business (B2B) on trust or distrust factors. The variables of quality included information

quality (IQ), service outcome quality (SOQ) and service quality (SQ). Also, this study

measures the difference of trust and distrust on the commitment and perceived risk. The data

used in this study was gathered from B2B environment firms. The final sample size of this

study was consisted on 145 responses. SOQ was having a positive but insignificant impact on

trust but on the other hand it was having a significant impact on distrust. The last finding of

this study was that trusting beliefs was found having a strong and significant relationship

with commitment and distrusting beliefs was insignificantly affecting.

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All over the world, now governments are using internet facilities like electronic government

platforms for the provision of public services. Such services include basic informational

websites for the management of relationship between agencies and other than government

networks. The facility of e-government help to deliver more specific, time saving, cost

effective and easily accessible information to the overall community. By the help of Unified

Theory of Acceptance and Use of Technology, Jacob et al. (2017) designed a research study

and developed a model related to e-government adoption service. They included some other

variables in the model including Information quality, System quality and Trust. The study

was conducted through a survey approach and totals 237 survey responses were collected

from citizens of Indonesia. Collected data was analyzed through path modeling of Smart

Partial Least Square. The analysis results have identified that there is an effect of Information

quality, System quality and the variables of trust on user behavior. The behavioral intention,

system quality, information quality and trust found to have significant and positive effects on

the expectancy of performance. Three variables found in this study as the important tool for

adoption of e-government. Practical implications have been suggested by this study for

practitioners.

Li et al. (2006) proposed to establish and examine the relationship between capabilities of a

firm to manufacture products and it performance. Random sampling technique was used to

select the participants of this study. The final sample size was consisted on 329 responses

that were used for data analysis. The analysis of manufacturing characteristics or capabilities

showed that delivery and quality was not significantly affecting performance of organization.

Also, the moderation effect of EO on flexibility and cost and its relationship with

performance was significant. Moreover, the findings of the study showed that the significant

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effect of flexibility and cost in manufacturing products through moderation of EO on

organizational performance was only high when EO was high.

2.9 Level of Information Sharing and Organizational Performance

Khan and Siddiqui (2018) aimed to analyze the relationship between different factors of

supply chain management (SCM) and the effect of these factors on manufacturing firm’s

performance. The target from which data was gathered based on pharmaceutical firms

located in Pakistan. The results of the study showed that supplier partnership based on

mutual beneficial strategies was found significantly affecting performance of firm. Also,

information quality was found significantly increasing frim performance. Additionally, it was

found that level of information sharing (LOI) was significantly but at a low level (negligible)

affecting firm performance.

Rached et al. (2015) explored the relationship or impact of sharing information in supply

chain on the cost and to every partner in SCM. Also, the effect of sharing different

information of SCM at a single time was analyzed. The results showed that sharing

information to partners about the product development was found significantly affecting firm

performance. The main findings of this study revealed that accurate and valid sharing of

information between the supplier and retailer was significant in increasing the gains or

performances. Also, it was found that for having maximum number of gains through

information sharing it was important for the retailer to identify all of the needs and for

supplier to fulfill the development before the lead time.

Dwayne Whitten et al. (2012) tested and list of inquiries was produced by the researchers’

and the information gathering process was provided by APICS. The findings of this (in light

of really observing things demonstration of making inquiries and endeavouring to discover

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reality about something bolster Lee's (2004) conflict that awesome organizations construct

SC which demonstrate adaptable athletic capacity and coordinating up in a straight line. In

mix, its prompt unrivalled SC performance, which, thus, prompts enhanced firms’

performance.

Attia (2015) examined the testing the impact of promoting technique arrangement and triple-

An SC on performance in Egypt. The information connected in this investigation were

gathered from 153 organizations working in the Egyptian textile industry. The generalization

of the examination results might be restricted by the extent of the sample. The delayed

consequence of the investigation bolster that authoritative execution is decidedly related SC

performance. To compute the fit between the estimation demonstrate and the information, the

examinations four factors were controlled by going to factor analysis. At last, it is prescribed

to will be valuable to utilize distinctive time arrangement to rationalize and justify the

hypothesized connection amongst the factors over a long period.

Panahifar et al. (2018) conducted a study to examine the relationship between different

features of the trust and information sharing and their importance for the effective

collaboration of supply chain and also its importance for the organizational performance. For

this purpose, they conducted a survey study with 189 employees of various supply chain

organizations in Thailand. The questionnaire survey aimed at identifying that how enablers

of collaboration create impact on the effective collaboration and to identify its effect on the

overall organizational performance. The collected data was studied through Structural

equation modeling by using Partial Least Squares techniques and association was studied

between perceived collaboration, four enablers (including information readiness, trust,

information security and information accuracy) and two products (including organization’s

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operational performance and sales growth). The analysis results showed that there are three

different enablers of collaborations namely information readiness, trust and secure

information sharing that have positive effects on the collaboration of supply chain. The most

important and effect element was secure information sharing that foster collaboration by

sharing of information. This study also highlighted through the collected data that effective

collaboration has significant and positive effects on the performance of overall firms.

Marinagi et al. (2015) proposed a model to analyze the relation between quality of

information and the performance of supply chain firm. The data was collected by targeting

61 manufacturing firms located in Greece. It was found that quality of information was found

insignificant to the performance level of SCM. Although, the direct effect of information

quality on information sharing was also found significant. Also, the role of sharing

information as a mediator in the above relationship was found significant. The findings of

information sharing were found highly significantly related to increase the firm performance.

2.10 Postponement and Organizational Performance

Simão et al. (2016) focused on analyzing the relationship between logistics and green supply

chain performance and the role of postponement in it. Also, postponement role was analyzed

in determining it effects on transportation in SCM. The target population of the current study

was manufacturing firm of Germany. The result show that postponement strategies in

logistics were found significantly related to overall logistics performance and increased the

time to deliver the products. Also, these strategies were significantly affecting the firm

performance in the aspect of ecological targets. The strategies were also negative and

significant in reducing the total inventory of SC. To conclude, postpone strategies were

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found increasing firm performance and also decreasing emission of CO2 which leads to

better improved ecological performance.

In this context, Carbonara and Pellegrino (2018) conducted a study in order to identify the

postponement value as the organizational strategy for mitigation of disruption in supply

chain. For this purpose, they designed a real option model of computation that investigated

the postponement value in the mitigation strategy of the organization in supply as well as

demand related disruptions by considering the value related to managerial flexibility

regarding the decision of exploiting strategy or not, and the timing of disruption and

differentiation of product. The researchers conducted numerical experiments for this study,

that they initiated with the examination of basic settings and then the research moved towards

the impacts of varying values of parameters. This numerical analysis showed that there is a

significance of adding an option of valuation method at the time of pricing of postponement

value. This explains that the organizational managers adopt the postponement strategies only

in time when it is considered valuable and these managers prefer to avoid giving burden to

the company with its initiating sunk costs. With the help of developing a model of

postponement implementation in different situations, the researchers identified the conditions

in which there is a benefit of postponement strategy for mitigation in supply chain

disruptions.

Dong et al. (2019) examined the role of different strategies of postponement in supply chain

(SC) to specifically analyze how quantity and price postponement techniques or strategies

effect SC flexibility to tackle different risks like supply and demand risks. In this study a firm

who made both decisions of postponement under risk was selected. The results show that

whenever a firm chooses the strategy of quantity postponement it was found that the amount

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of production of goods was almost equal to the demand of market because the risk of supply

was solved. However, the postponement strategy of price was found production of goods

more than the demand of market resulting in overproduction. Also, this postponement was

found handling the supply risk by decreasing in the amount of quantity but it was made sure

to increase the profit by extenuating supply risk.

2.11 Strategic Supplier Partnership and Organizational Performance

Agus (2015) aimed to analyze the role or value of efficient SCM and also examined that what

was the impact of this on performance of production and quality of the product. Also, the role

of mediation of factor, production performance was examined on the relationship between

SCM and quality of product. The sample data of 245 responses were collected from

manufacturing firms located in Malaysia. This study used quantitative survey as a tool to

collect the required data from these firms. The results show that improved factors of SCM or

strategic supplier partnership influenced the performance and quality of product in a

significant manner. Also, the results also revealed that there was a direct link between

product performance and quality and it was significant.

Sedyaningrum et al. (2019) focused to analyze the role of strategic supplier partnership (SSP)

and its impact on integration in supply chain (SC), performance of SC and the performance

of farmers. The target of the current study was Indonesia and more specifically east province.

The final sample was based on 200 responses which were used for data analysis. The results

showed that SSP was found insignificantly related to all the variables used in the study.

However, SC integration was found significantly and positively related to SC performance

and farmers’ performance. In addition, SC performance was found significant to the farmers’

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performance. The findings revealed that improvement of SC integration and SC management

was the main factor in increasing their performance and development.

Nyaga et al. (2010) investigated the SC associations with the perspectives of supplier and

buyer on cooperative associations. Information for this exploration was gotten from reviews

conveyed crosswise over two independent samples: the principal test focused on purchasing

firms and the second specimen focused on provider firms. One of the quick aftereffects of the

exploration demonstrates that the anticipated display offers the guarantee of generalizability

in model is sustained by utilizing two independent samples where respondents have alternate

points of view: a purchasing viewpoint and a providing viewpoint. This outcome, all by

itself, is stimulating on the grounds that it features that suppliers and purchasers have points

of view that are for the most part more comparative than they are unique. It offers the

likelihood that collaborative connections will probably be fruitful in light of the fact that

purchaser and suppliers models are not different.

Miocevic and Crnjak-Karanovic (2012) examined the role of mediating supplier association

practices in management on SC orientation. The firms buying efficiency associated with it. A

survey ways of doing things were utilized to gather the information and using the test for the

anticipated educated guesses. The study test/list of questions was developed on the basis of a

long/big book-related review. In the existing research, it depended on the creational value

process which happens from side to side the operational efficiency of firms’ procurement

procedures of production firms. Moreover, the buying activities has sensible view about the

important and not important things, the essential thing is creating value happens in the

manufacturing procedures of firms’ buyers. Future researches could combine different things

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together so they work as one unit all other customer value creation sources of in production

firms.

Hamister (2012) examined the SCM practices in small retailers. The examination

configuration included the advancement of a review test list of inquiries to gauge the

distinctive builds of interest, associated with an sampling procedure to make valid feedback

from the number of inhabitants in interest, trailed by investigation of the identified with solid

model utilizing the PLS technique. The identified with what holds something together and

makes it strong modelling way of doing things PLS was used to figure out the worth, amount,

or quality of the research educated guesses. This research used in a variability of school

subjects comprising of related to a plan to reach a goal firms’ management, and information

management systems. PLS is a strong equation modelling way of doing things that depends

on regression technique instead of other SEM ways of doing things such as AMOS. It is

commonly and regular used for healthy of data distributions, instance of watching, noticing,

or making a statement independence or number or thing that changes metric evenness and

equality. PLS is best when carefully studying related to creating or forming something

constructs.

Wafula and George (2015) conducted a study in order to investigate the impact that strategic

supplier partnership creates on the organizational performance in energy related sector. This

study was based on the Kenya Pipeline Company Limited. This company is counted as the

main player of Kenyan energy sector. The study was descriptive in nature targeting 50

employees of procurement department. They utilized census method of study as the target

population was small and these 50 employees were targeted as the overall sample. Primary

data was collected with the help of a questionnaire and both inferential statistics (including

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frequency distribution) and descriptive statistics (including linear multivariate regression)

were used. This study analysis showed that the strategic supplier partnership has helped

improving the networking and communication between the organizations and suppliers.

Further the results provided neutral results that SSP has brought computerization of the

system of inventory management and the improved innovation in supply chain. The results

showed that strategic supplier partnership has brought improvements in the delivery time of

petroleum products in market. This strategic supplier partnership increased the KPC’s

demand forecast. This study showed that SSP helped developing the networking and

communication among the suppliers and firms. However the petroleum products’ storage was

not improved by this SSP.

2.12 Research Hypotheses

H1. Strategic supplier partnership has significant relationship with organizational

performance.

H2. Customer relationship has significant relationship with organizational performance.

H3. Level of information sharing has significant relationship with organizational

performance.

H4. Quality information sharing has significant relationship with organizational

performance.

H5. Postponement has significant relationship with organizational performance.

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2.13 Conceptual Framework

Strategic Supplier Partnership

Supply Customer Relationship

Chain
Level of Information Sharing Organizational
Manage
Performance
ment
Practices Quality Information Sharing

Postponement

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CHAPTER 3

RESEARCH METHODOLOGY

3.1 Research Approach & Type

There are two main two main types of research approaches. They are called the qualitative

research approach and the quantitative research approach. The quantitative research approach

is where the data collection and analyzing of the data takes place with the help of numbers

(Babbie, 1998). The quantitative data does not extract detailed information from the

participants but uses huge number of participants for the data so the results can be

generalized (Blessing & Chakrabarti, 2009). The reason for the assessment of the data is find

correlation between the variables and the confirmation or the rejection of the hypothesis of

the research. Impartial data collection takes place in the quantitative method due to which,

the data can be decreased (Kothari, 2004). Since the study is collecting and analyzing large

dataset, the research method is a quantitation one.

There are two main types of researches. They are known as the explanatory research type and

the exploratory research type. The explanatory research type has a significant importance due

to the fact that it helps in confirmation or rejection of the theory the study represented

thoroughly (Kothari, 2004). The explanatory research type assists in finding in-depth results

and put forward a detailed explanation of the phenomenon the study is analyzing. The

explanatory research assesses the variables representing the behavior of people, their actions

and also provides details regarding the conditions where they can be impacted (Kumar &

Phrommathed, 2005). Since the study is confirming a theory, the study applies the

explanatory research as the research type.

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3.2 Research Design

In the research design, Cooper et al. (2006); Veal (2005) suggested there are main types of

research design. They are the causal research design and the correlational research design.

The correlational research design deals with the evaluation of relationship among the

variables of the study in theory, whereas, the causal research design deals with the cause-and-

effect association among the variables of the study (Kumar & Phrommathed, 2005). The

correlational research design is used in order to confirm the theory the study is presenting

(Koul, 2009). Thus, the correlational research design is applied since this study assesses the

association between the constructs of the study.

3.3 Research Population

One of the contributing manufacturing industries of Pakistan is the textile industry while it

has massive supply chain practices and mechanisms but it somewhat found less-efficient in

their processes. Henceforth, the study has undertaken its importance and taken it as research

population to understand the role of supply chain management practices on the operational

performance of textile industry of Pakistan. However, the data was collected from the supply

chain professionals of textile firms of Karachi, Pakistan.

3.4 Sample Size & Sampling Technique

For the purpose of data collection, the study has used 50 + 8k formula (Tabachnick & Fidell,

2007) where in k is the total number of variables in the model. Thus, there were six variables

in the model and therefore, minimum 60 responses were required for the study. In this regard,

the study has aimed to collect 211 sample responses from the supply chain professionals of

textile firms in Karachi, Pakistan.

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The respondents were selected from Afroze textile (60), union textile (42), Al Rahim (30),

PAK textile (45), Akhtar textile industry (34) responses. These organizations were selected

because these organizations were rather conveniently available as the study has chosen

convenience sampling to gather the data.

The non-probability sampling is a type of sampling where not every person in the population

has an equal chance of representation (Gomm, 2008). The convenience is where the data is

collected from a group or population that was in close proximity to the researcher (Koul,

2009). Henceforth, the study has used convenience sampling technique to collect desired data

from the sample population.

3.5 Research Instrument

Variable Name Source(s) No. of Items Scale

Strategic supplier relationship (Li et al., 2006) 6 1–5
Customer relationship (Li et al., 2006) 5 1–5
Level of information sharing (Li et al., 2006) 6 1–5
Quality information sharing (Li et al., 2006) 5 1–5
Postponement (Li et al., 2006) 3 1–5
Organizational performance (Li et al., 2006) 7 1–5

3.6 Data Collection

For the purpose of data collection, the study has used self-administered questionnaire

methodology to collect data from the sample population using five-point Likert scale

quantitative questionnaire. The instrumentation of variables has been presented in the above

table; whereas primary data sources were targeted for data collection in terms of first-hand

responses from the supply chain professionals of textile firms of Karachi, Pakistan.

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3.7 Data Analyses Method

In regards to data analysis, the study has employed Cronbach’s alpha from reliability

analysis, and multiple linear regression analysis. The purpose of using multiple linear

regression analysis is to enable the hypothesis-testing between two or more independent

variables and one dependent variable. Herein, these assumptions were met in the model and

therefore, multiple regression analysis has been used for primary data analysis for inferential

statistics.

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CHAPTER 4

RESULTS

4.1 Respondent Profile

Table 1: Demographic Profiles (n = 211)

Frequency Percent
Male 128 60.7
Gender
Female 83 39.3
Senior Manager 96 45.5
Job title
Manager 115 54.5
Under 2 years 64 30.3
Years at the current organization 2-5 years 83 39.3
6-10 years 64 30.3
Bachelor 51 24.2
Professional
48 22.7
Qualification
Educational Level
Postgraduate
80 37.9
(Master)
Other 32 15.2
200 to 500 134 63.5
Firm size (No. of employees) 500 to 1000 13 6.2
More than 1000 64 30.3

Table 1 showed that the total number of participants was 211. Of them 60.7% (128) were

males and 39.3% (83) were females. 45.5% (96) were senior managers and 54.5% (115) were

managers. 30.3% (64) were working at the organization for less than 2 years, 39.3% (83)

were working at the organization for 2-5 years and 30.3% (64) were working for 6-10 years.

Of the 24.2% (51) had bachelors qualification, 22.7% (48) had professional qualification and
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37.9% (80 were postgraduates (Masters) and 15.2% (32) had other qualifications. In context

to size of the firms (No. of employees), 63.5% (134) had 200 to 500 employees, 6.2% (13)

had 500 to 1000 employees and 30.3% (64) had more than 1000 employees.

4.2 Reliability Analyses

Table 2: Reliability Analysis

Variable Name N Items Cronbach's Alpha
Organizational Performance 7 0.532
Strategic Supplier Partnership 6 0.560
Customer Relationship 5 0.867
Level of Information Sharing 6 0.691
Quality Information Sharing 5 0.682
Postponement 3 0.727

Table 2 showed that, all the variables had Cronbach’s Alpha greater than the recommended

value of 0.50 (Nunnally & Bernstein, 1994). In the above table, it has been shown that

organizational performance has the least internal consistency of 53.2 percent while customer

relationship has the highest internal consistency of 86.7 percent; therefore, all the variables in

the model has achieved reliability of above 50 percent i.e. acceptable. In this regard, strategic

supplier partnership has internal consistency of 56 percent, level of information sharing has

reliability of 69.1 percent, quality information sharing has internal consistency of 68.2

percent and postponement has reliability of 72.7 percent. Henceforth, internal consistency of

each variable has been achieved.

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4.3 Hypothesis Testing

Table 3: Multiple Regression Analysis

Beta Std. Error t-Stats Sig. VIF
(Constant) -1.076 0.333 -3.233 0.001
Strategic Supplier
0.305 0.048 6.320 0.000 2.517
Partnership
Customer Relationship 0.482 0.046 10.436 0.000 1.613
Level of Information Sharing 0.183 0.037 4.953 0.000 1.743
Quality Information Sharing 0.230 0.045 5.111 0.000 1.982
Postponement 0.052 0.038 1.361 0.175 1.874
Dependent Variable: Organizational Performance
R-Square = 0.665; Adjusted R-Square = 0.657
F-Statistics (Prob.) = 81.539 (0.000)
Table 3 showed that strategic supplier partnership (0.305, p < 0.05); customer relationship
(0.482, p < 0.5), level of information sharing (0.183, p < 0.05) and quality information
sharing (0.230, p < 0.05) were all significant affecting the organizational performance.
However, postponement (0.052, p > 0.5) was not significantly affecting the organizational
performance. Moreover, all the independent variables had an effect size of 66.5% on the
dependent variable of organizational performance, as denoted by the R-square value of 0.665
in the table. Furthermore, all the variables had the VIF values below 5 as recommended by
(Hair et al., 2010); therefore, it means that multicollinearity does not exist among the
variables.

4.4 Summary of Hypothesis Testing

Hypothesis Testing Decision

H1. Strategic supplier partnership has significant relationship with Accepted
organizational performance.
H2. Customer relationship has significant relationship with organizational Accepted
performance.
H3. Level of information sharing has significant relationship with organizational Accepted
performance.
H4. Quality information sharing has significant relationship with organizational Accepted
performance.
H5. Postponement has significant relationship with organizational performance. Rejected

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CHAPTER 5

DISCUSSION

5.1 Discussion

There were several outcomes the study found with the help of data analysis. The result of the

data analysis showed that strategic supplier partnership was positively and significantly

influencing the organizational performance. This result was supported in the previous studies

by (Dolo et al., 2018) and (Khan & Siddiqui, 2018) and it was found that the participants of

this study had a positive impact by supplier partnership and enhanced their organizational

performance. Similarly, this result was accomplished because when the supply chain had a

reliable partnership with their suppliers it meant that both parties had a shared desired goal to

accomplish and it increased their performance. It could also be said that suppliers and

manufacturers were going in the same direction with mutual management of the tasks and

details in managing the management system so it helped them in developing the products on

time and with high efficiency which eventually enhanced their organizational performance.

The study also found that, customer relationship was positively and significantly influencing

the organizational performance. This result was supported in the previous study by (Al-

Weshah et al., 2019) and it showed that an increase or improve relationship with the

customer highly affected the organization performance. This result was accomplished

because the employees selected in this study were highly correlated with the customers and

they might had a proper communication process in order to improve the relationship that

eventually helped in affecting performance. In addition, the current result could be described

as that when the customers were having reliable services and products they were highly

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satisfied. Similarly, customers were might be feeling a bit satisfied with the timely

development of products and some innovation in these products and most importantly they

were getting a feedback from the supply chain which helped in increasing this relationship

and as a result enhanced the aspect of organizational performance.

Moreover, the study also found that level of information sharing was also positively and

significantly influencing the organizational performance. This result was supported in the

previous study by (Marinagi et al., 2015) and it revealed that high amount of information

sharing affected the organizational performance significantly. Therefore, it is stated that

when there were different levels of information sharing like a vast quantity was shared

between various supply chain partners it resulted in enhancing the organizational

performance. However, it was found that different partners of supply chain with additional

information in their different processes of manufacturing or some other process like

customers, suppliers and internally shared information it helped them in increasing their

efficiency of achieving tasks. Hence, this process highly helped them in developing their

aspect of organizational performance.

Furthermore, the study also found that quality of information sharing was also positively and

significantly influencing the organizational performance. This result was supported in the

previous study by (Khan & Siddiqui, 2018) and stated that an increase the quality

information sharing highly increased the organizational performance. So, the main reason

behind achieving this result was that sharing information was known as an important and

essential aspect but the main prospect was the sharing of quality information in which these

participants were highly involved in sharing the information regarding the different prospects

of supply chain that helped in enhancing the organizational performance. At last, further

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discussion would be like when the employees were involved in quality information sharing

via other partners it was accomplished in the presence of high trust between them because it

was important to have trust in sharing information so the partners had a great success in their

processes which eventually helped in organizational performance increment.

However, the study also found that the postponement was positively but insignificantly

influencing the organizational performance. This result was supported in the previous studies

by (Saghiri & Barnes, 2016) and (Dong et al., 2019) that an increase in postponement did not

have any effect on the organizational performance. However, the main reason behind getting

this result was that the basic concept of postponement was that investment or development

stops in supply chain for managing different risks and problems in it so that this halting did

not have any effect on the performances. Also, it was stated that when supply chain were

having some fluctuations and their tasks were not providing the desired development and

results then a postponement was implemented and the products were semi-developed but

when some orders came then the products were finished but this process did not have any

effect on organizational performance.

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CHAPTER 6

RECOMMENDATIONS AND CONCLUSION

6.1 Recommendations

The current study is very important in the supply chain management aspect and it helped in

providing some quite beneficial information to help the managers in understanding this

relationship and improving their performance level. However, there can some improvements

that could be made and therefore few recommendations to managers are given below.

The relationship between strategic supplier partnership and organizational performance is

positive and significant. Hence, the managers are recommended to improve the performance

of organization by developing the relationship with supplier. The major goal between this

relation is to have a shared strategy and vision so the managers are recommended to make

such goals or visions and develop strategies that can be mutually shared. Similarly, build

relationships with such suppliers that share the same amount of credible and reliable values.

Also, the second recommendation is to invest equal amount of money in the achievement of

desired goals. Additionally, when trying and achieving a shared goal be aligned in the

activities and in order to do this manager is highly recommended to have a shared planning

and details in a management system. The managers are also recommended to build a clear

way of communication and collaboration among supplier and customer to be successful. At

last, in order to develop a smooth and successful long lasting relationship between strategic

supplier partnership and organizational performance it is an important recommendation to

follow every risk and reward in the relationship. It means that if a risk or damage comes to

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even one party other should share it and do not jeopardize the relationship and same is for the

reward system.

Additionally, the second relationship is between customer relationship and organizational

performance that is also positive and significant. Therefore, the managers are recommended

to enhance their organizations performance by developing a good relation with the

customers. So, the first and the important recommendation is to develop a reliable and

credible relation with customer by providing them proper services with high and efficient

quality so that they will remember it for a long time and keeps coming back. However,

develop such platform on which there is a clear way of communication between both parties

so that customers can get into touch with the organization and enhance the organizational

performance. Sometime, try and be productive and innovative by exceeding the customer

expectations in delivering the services because every customer expects better and improved

services every time. Similarly, one of the important recommendations is to conduct a survey

and ask for feedback so that customers could easily show their problems and discuss it with

the managers and be connective with their products and help in developing the organizational

performance. Lastly, show high appreciation to the customers by giving them extra rewards

and offers and discounts as well so that more and more customers could be attracted and they

can highly improve the organizational performance.

In addition, the third relationship is between level of information sharing and organizational

performance and it is also positive and significant. The managers are recommended to

develop their organization’s performance by enhancing the aspect of level of information

sharing. This process is highly based on the amount or quantity of information so first

recommendation is to provide vast information among the retailer and manufacturer.

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Similarly, second recommendation is to develop different platforms on which the information

could be shared. Like, there are different levels of information sharing that included order

and demand. Therefore, managers are also recommended to share the information with

different partners of supply chain that includes suppliers, customers, retailer and internally as

well. This process will help managers in reducing the inventory levels and total cost of

manufacturers and can help in developing a centralized and stable supply chain for high

organizational performance.

Moreover, the last result between quality information sharing and organizational

performance is also positive and significant. Therefore, the managers are recommended to

enhance their organization performance with developing and increasing the quality of

information sharing. The role of quality is an essential element to run a smooth supply chain

and hence the first recommendation is to develop and organize a platform on which

information could be easily share in supply chain because having only one or few employees

to do this task could easily lead to bottlenecks in this aspect. Furthermore, the second

recommendation is to develop trust between various partners of supply chain so that the

receiving party could easily fell credible and reliable about the information because of

presence of high trust among them. Also, the current phenomena are important because it

would help in achieving high customers and relationship with them. However, managers

could also enhance the organizational performance by making quality information sharing a

priority and also give incentives to the employees by sharing quality information. The other

recommendation is to possibly re check the training and hiring methods all over again and try

and develop long lasting strategies for quality information sharing by highly investing in it.

Lastly, the last recommendation is to build a knowledge based library in which the

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employees could easily get information and share it with others and a process of sharing

incorporate knowledge can also be established as long as it can be manage well. Hence, by

implementing and acting according to these recommendations managers could easily

improve the organizational performance.

6.2 Limitations of the Research

Since there were only limited observations (211 responses), in this study the revalidation of

variables was not done. There was lack of systematic confirmatory research that hinders

general agreement on the instrument’s usage. Secondly, there is complex SCM concept and

that includes companies’ network to produce and deliver final output, thus the overall domain

cannot be studied in one research. This study’s data included responses taken from single

respondents of a firm that could generate possible biasness in response. The analysis results

must be interpreted focusing on the limitations. The utilization of the single respondent can

develop some inaccuracy in measurement.

6.3 Future Research

The researcher of this study has directions for researchers studying this topic in the future.

One is that this study had limited observations resulting in lack of revalidation of variables.

Future researchers are advised to increase the number of observations as it will allow general

agreement on the usage of the instrument. Moreover, future researchers are advised to also

study the firm’s network to produce and deliver finished goods, in order to study as much

domain of supply chain management as possible. Furthermore, the future researchers are

recommended that they should increase the number of firms that are included in the sample

in order to reduce the biasness in the data.

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6.4 Conclusion

The main objective of this study is to examine the influence of supply chain management on

how the organization performs in the context of textile industry from Karachi, Pakistan.

There are various variables by which this relationship has been evaluated. It included

strategic supplier partnership, customer relationship, level of information sharing, quality

information sharing and postponement which helped in examining the organizational

performance. The current study used quantitative approach with the help of explanatory

purpose to collect the data. However, data was collected from the professional of supply

chain in textile firms. Similarly, the final sample size is 211 and these respondents have been

selected via using convenience sampling. At last, the data has been analyzed using multiple

regression analysis.

This study provided several beneficial results in the aspect of supply chain management.
However, the relationship between strategic supplier partnership and organizational
performance is positive and significant. Second relationship, customer relationship and
organizational performance is also positive and significant. The relationships between level
of information sharing and quality information sharing is also positive and significant
towards organizational performance. On the other hand, postponement is positive but
insignificantly related with organization performance.

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APPENDIX

QUESTIONNAIRE SURVEY

This Questionnaire has been designed for research into the impact of supply chain
management practices on organizational performance of textile industry. Your feedback in
this regard will be highly appreciated. Kindly fill in this questionnaire to the best of your
ability. All responses shall be kept confidential and shall only be used for research purposes.
Thank you for your time and cooperation.

DEMOGRAPHIC INFORMATION

Gender

o Male
o Female
Job title

o Senior Manager
o Manager
o Assistant Manager
o Other
Years at the current organization

o Under 2 years
o 2 – 5 years
o 6 – 10 years
o Over 10 years
Educational level

o College Diploma/ Matriculation/ A-Level

o Bachelor
o Professional Qualification
o Postgraduate (Master)
o Others

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Firm size (No. of employees)

o Less than 200

o 200 to 500
o 500 to 1000
o More than 1000

SUPPLY CHAIN PRACTICES

With regard to SCM practice, that accurately reflects your firm’s present conditions. Please
circle the appropriate boxes to indicate the extent to which you agree or disagree with each
statement. The item scales are five-point Likert type scales with. 1 = strongly disagree, 2 =
disagree, 3 = neutral, 4 =agree, 5 = strongly agree.

Strategic supplier partnership (SSP) 1 2 3 4 5

We consider quality as our number one criterion in selecting suppliers.

We regularly solve problems jointly with our suppliers.

We have helped our suppliers to improve their product quality.

We have continuous improvement programs that include our key suppliers.

We include our key suppliers in our planning and goal-setting activities.

We actively involve our key suppliers in new product development

processes.

Customer relationship (CR) 1 2 3 4 5

We frequently interact with customers to set reliability, responsiveness, and

other standards for us.

We frequently measure and evaluate customer satisfaction.

We frequently determine future customer expectations.

We facilitate customers’ ability to seek assistance from us.

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We periodically evaluate the importance of our relationship with our

customers.

Level of information sharing (IS) 1 2 3 4 5

We inform trading partners in advance of changing needs.

Our trading partners share proprietary information with us.

Our trading partners keep us fully informed about issues that affect our
business.

Our trading partners share business knowledge of core business processes

with us.

We and our trading partners exchange information that helps establishment

of business planning.

We and our trading partners keep each other informed about events or
changes that may affect the other partners.

Level of information quality (IQ) 1 2 3 4 5

Information exchange between our trading partners and us is timely.

Information exchange between our trading partners and us is accurate.

Information exchange between our trading partners and us is complete.

Information exchange between our trading partners and us is adequate.

Information exchange between our trading partners and us is reliable.

Postponement (POS) 1 2 3 4 5

Our products are designed for modular assembly.

We delay final product assembly activities until customer orders have

actually been received.

We delay final product assembly activities until the last possible position
(or nearest to customers) in the supply chain.

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ORGANIZATIONAL PERFORMANCE

With regards to overall performance of the firm, please circle an appropriate number which
best suits your extent of agreement/disagreement with the following statements. The item
scales are five-point Likert type scales with. 1 = strongly disagree, 2 = disagree, 3 = neutral,
4 =agree, 5 = strongly agree.

Organizational performance 1 2 3 4 5

Our organization has increased its market share as compared to

competitors.

Our organization has increased its return on investment as compared to

competitors.

Our organization has increased its market share growth as compared to

competitors.

Our organization has increased its sales growth as compared to competitors.

Our organization has increased its growth in return on investment as

compared to competitors.

Our organization has increased its profit margin on sales as compared to

competitors.

Our organization has increased its overall competitive position in the

market.

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Gender
Frequency Percent Valid Percent Cumulative
Percent
Male 128 60.7 60.7 60.7
Valid Female 83 39.3 39.3 100.0
Total 211 100.0 100.0

Job title
Frequency Percent Valid Percent Cumulative
Percent
Senior Manager 96 45.5 45.5 45.5
Valid Manager 115 54.5 54.5 100.0
Total 211 100.0 100.0

Years at the current organization

Frequency Percent Valid Percent Cumulative
Percent
Under 2 years 64 30.3 30.3 30.3
2-5 years 83 39.3 39.3 69.7
Valid 6-10 years 64 30.3 30.3 100.0
Total 211 100.0 100.0

Educational Level
Frequency Percent Valid Percent Cumulative
Percent
Bachelor 51 24.2 24.2 24.2
Professional Qualification 48 22.7 22.7 46.9
Valid Postgraduate (Master) 80 37.9 37.9 84.8
Other 32 15.2 15.2 100.0
Total 211 100.0 100.0

Firm size (No. of employees)

Frequency Percent Valid Percent Cumulative
Percent
200 to 500 134 63.5 63.5 63.5
500 to 1000 13 6.2 6.2 69.7
Valid More than 1000 64 30.3 30.3 100.0
Total 211 100.0 100.0

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Case Processing Summary

N %
Valid 211 100.0
Cases Excludeda 0 .0
Total 211 100.0
a. Listwise deletion based on all variables in the
procedure.

Reliability Statistics
Cronbach's N of Items
Alpha
.560 6

Case Processing Summary

N %
Valid 211 100.0
Cases Excludeda 0 .0
Total 211 100.0
a. Listwise deletion based on all variables in the
procedure.

Reliability Statistics
Cronbach's N of Items
Alpha
.867 5

Case Processing Summary

N %
Valid 211 100.0
Cases Excludeda 0 .0
Total 211 100.0
a. Listwise deletion based on all variables in the
procedure.

Reliability Statistics
Cronbach's N of Items
Alpha
.691 6

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Case Processing Summary

N %
Valid 211 100.0
Cases Excludeda 0 .0
Total 211 100.0
a. Listwise deletion based on all variables in the
procedure.

Reliability Statistics
Cronbach's N of Items
Alpha
.682 5

Case Processing Summary

N %
Valid 211 100.0
Cases Excludeda 0 .0
Total 211 100.0
a. Listwise deletion based on all variables in the
procedure.

Reliability Statistics
Cronbach's N of Items
Alpha
.727 3

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Variables Entered/Removeda
Model Variables Variables Method
Entered Removed
Postponement, . Enter
Customer
Relationship,
Level of
Information
1
Sharing, Quality
Information
Sharing,
Strategic Supplier
Partnershipb
a. Dependent Variable: Organizational Performance
b. All requested variables entered.

Model Summary
Model R R Square Adjusted R Std. Error of the
Square Estimate
1 .816a .665 .657 .266
a. Predictors: (Constant), Postponement, Customer Relationship, Level of
Information Sharing, Quality Information Sharing, Strategic Supplier
Partnership

ANOVAa
Model Sum of Squares df Mean Square F Sig.
Regression 28.751 5 5.750 81.539 .000b
1 Residual 14.457 205 .071
Total 43.208 210
a. Dependent Variable: Organizational Performance
b. Predictors: (Constant), Postponement, Customer Relationship, Level of Information Sharing, Quality
Information Sharing, Strategic Supplier Partnership

Coefficientsa
Model Unstandardized Standardized t Sig. Collinearity
Coefficients Coefficients Statistics
B Std. Error Beta Tolerance VIF
(Constant) -1.076 .333 -3.233 .001
Strategic Supplier .305 .048 .405 6.320 .000 .397 2.517
Partnership
Customer Relationship .482 .046 .535 10.436 .000 .620 1.613
1 Level of Information .183 .037 .264 4.953 .000 .574 1.743
Sharing
Quality Information .230 .045 .291 5.111 .000 .504 1.982
Sharing
Postponement .052 .038 .075 1.361 .175 .534 1.874
a. Dependent Variable: Organizational Performance

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Collinearity Diagnosticsa
Mod Dimensi Eigenval Conditio Variance Proportions
el on ue n Index (Constan Strategic Customer Level of Quality Postponeme
t) Supplier Relationsh Informati Informati nt
Partnersh ip on on
ip Sharing Sharing
1 5.872 1.000 .00 .00 .00 .00 .00 .00
2 .085 8.328 .00 .02 .00 .28 .01 .02
3 .020 17.117 .01 .00 .24 .06 .08 .16
1
4 .013 21.367 .01 .00 .01 .02 .44 .60
5 .008 26.332 .02 .96 .05 .11 .08 .22
6 .002 52.018 .97 .02 .70 .54 .40 .00
a. Dependent Variable: Organizational Performance

54

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