Government Support and Market Proximity: Exploring Their Relationship with Supply Chain Agility and Financial performance

Abstract

The current paper presents a structural equation model with four variables (Government, Infrastructure, Proximity to market, and supply chain Agility) affecting the Financial performance of a company. Six hypotheses or relationships among variables are proposed, supposing that Government and market Proximity are key elements to achieve a greater Agility in supply chains, considering the regional Infrastructure to determine the impact on Financial performance in manufacturing companies. The model is validated with data from a survey applied to 225 persons in 65 manufacturing companies located in Ciudad Juárez, Chihuahua, Mexico. The model is evaluated using partial least squares, and the findings indicate that there is a direct and positive effect from the Government on regional Infrastructure with a rate of 0.436. When the Government supports the availability of land, energy resources, transportation, telecommunications, mobile telephones, and other services, a positive change is achieved in the Infrastructure and supply chain Agility. Furthermore, the Government also has a direct and positive effect on the market Proximity at a rate of 0.171; consequently, the regional Infrastructure also has an effect on it. Similarly, the market Proximity directly and positively influences the supply chain Agility, as well as a company’s Financial performance at a rate of 0.506.

The governance-production nexus of eco-efficiency in Chinese resource-based cities: A two-stage network DEA approach

“…The government sector and the industrial sector are regarded as the two components of a city. The government sector is responsible for public goods and services and provides support for the industrial sector, while the industrial sector is in charge of industrial production activities (Avelar-Sosa et al, 2018;The Chinese Government, 2017a;. The government sector uses urban construction land and public finance expenditure to provide support for the industrial sector by providing infrastructure, technology, education, and healthcare.…”

“…A governmentproduction relationship can be described as that the government provides the road, where the entrepreneurs can drive the car (Lu and Pan, 2016). The outputs of the government sector include a series of public goods and services (Avelar-Sosa et al, 2018;Lu and Pan, 2016;The Chinese Government, 2017a;. The government sector aims to provide fair, accessible, high-quality public goods and services for creating a favorable production environment (Cull et al, 2017;Hu et al, 2017;Lu and Pan, 2016).…”

“…The outputs of government include a series of public goods and services, such as education, public health, basic science, cutting-edge technology, infrastructure, pollution control, and ecological protection (Avelar-Sosa et al, 2018;The Chinese government, 2016, 2017aZhang et al, 2018). Entrepreneurs could achieve great development with a high quality supply of public goods and services from the government.…”

“…The decrease in governance efficiency in the Central, Western, and Northeast regions may restrain or even reverse the improvement trend of the production efficiency. Some studies have found that better support from the government has a positive impact on production activities (Avelar-Sosa et al, 2018;Cull et al, 2017) and that cities with lower efficiency are more sensitive to government intervention (Yan et al, 2019a). Improving governance efficiency can be a stepping stone for the normal operation of production activities and further improve the eco-efficiency.…”

A Systematic Literature Review Protocol for the analysis of practices, measurement instruments and contextual factors inherent to Supply Chain Agility

“…Gligor and Holcomb (2012) have presented a conceptual framework to achieve SCA based on the three key enablers of demand management interface capabilities, supply management interface capabilities, and information management capabilities, while Kim and Chai (2017) in their empirical study have supported the role of supplier innovativeness, information sharing, and strategic sourcing in achieving SCA. Amongst these enablers of SCA are certain capabilities that supply chains needs to possess, and other structural, relational, social, and strategic enablers: for instance, many researchers have studied the impact of structural related enablers of SCA such as supply chain design, IT infrastructure, and market proximity (Ismail and Sharifi, 2006;Khalili et al, 2011;Avelar et al, 2018), while others have indicated the importance of strategic enablers in achieving SCA (Kim and Chai, 2017;Qi et al 2011).…”