The Impact of Supply Chain Integration on Firm Performance: Exploring the Mediating Role of Demand Uncertainty in Pakistan’s Textile Industry

Abstract

Textile Industry is one of the most important sector in Pakistan, it contributes to 60% of the total exports and around 423 companies are operating currently. This sector contributes greatly in the overall GDP; it is the 8th largest exporter of textile products in Asia. Despite of this sector being the backbone of the country’s economy, this sector needs to improve its supply chain, improve productivity and maximize value addition in order to be fruitful in the future too. This study will enlighten the impacts of supply chain integration on industry performance, and will also study the mediating impact of Demand uncertainty in this regard. All the available data will be gathered and new data will be collected with the help of survey forms. The study will use deductive approach, and the data collected will be empirically tested and verified. This study is innovative and aims to enrich the literature on SCI and performance by providing empirical evidence on the effect of demand uncertainty as one of the main contingency factors that affect the relationship between SCI and firm performance. The research model will be empirically validated surveying 5% of the listed companies, valid survey responses from the Textile Industry which were subjected to quantitative research design and regression analysis. To the best of researcher’s knowledge, this is first study that empirically test Supply Chain Integration (External, Internal, Customer, Supplier, Process and Product) on Firm Performance (Operational Performance), considering Demand Uncertainty as the mediator.