Impact of Jordan’s Logistic Capabilities and Supply Chain Performance on Textile Manufacturing Firm Performance: An Empirical Investigation

Abstract

The main purpose of this study is to investigate the current five Jordan’s Logistic Capabilities (JLCs) and five Supply Chain Performance (SCP) elements that are used in Textile Manufacturing Firms (TMFs) in Jordan and their impacts on Textile Manufacturing Firm Performance (TMFP). The target population for this study was high-level managers (i.e., logistics managers, …etc.) who were randomly selected from large-sized TMFs already listed in the Ministry of Industry and Trade in Jordan. Data was collected through a self-administered questionnaire that was distributed among TMFs in Jordan. 44 questionnaires were valid for analysis. A large-scale survey questionnaire was used for the data collection process and applied after conducting a pilot study survey. The research framework was tested using hypothesis-testing deductive approach. Descriptive statistics, such as means and standard deviations, were used. Furthermore, multiple regression analysis and Pearson correlation coefficient were used to identify the impacts of the main dimensions. Survey responses were analyzed by using SPSS (17). The results show that JLCs were well established, prepared and used to a high degree in terms of roads, seaports and telecommunication that can facilitate and support SCP elements. JLC elements already have a moderate positive significant impact on SCP (H1). SCP practices adopted in terms of supply chain flexibility were found at a high degree, while supply chain responsiveness, customer satisfaction and delivery reliability were found at a moderate degree. Supplier cooperation was found at a weak degree. Additionally, it is found that SCP elements have a strong positive significant impact on TMFP (H2), whereas JLC elements have a moderate positive significant impact on TMFP (H3). This paper provides an overview of the field of JLCs and supply chain performance; therefore, it will be of a high value for top managers, policy makers and academics and aid managers in the decision-making process. The results show that JLCs is well established, prepared and used to high degree in terms of roads, seaport, and telecommunication that can facilitate and support SCP elements. JLCs elements already have moderate positive significant impact on SCP (H1). SCP, practices that are adopted in terms of supply chain flexibility was found high degree; while, supply chain responsiveness, customer satisfaction, and delivery reliability were found to moderate degree; whereas, supplier cooperation to weak degree. Additionally, it is found that SCP elements have strong positive significant impact on TMFP (H2); whereas, JLCs elements have moderate positive significant impact on TMFP (H3). This paper provides an overview of the field of JLCs and supply chain performance; therefore, it will be of high value for top managers, policy makers and academics, which may aid managers in decision-making process.