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

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...

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Bibliografske podrobnosti
Glavni avtor: Avelar, Liliana
Drugi avtorji: García-Alcaraz, Jorge Luis, mejia, jose, Maldonado-Macías, Aide, Alor-Hernández, Giner
Format: Artículo
Jezik:English
Izdano: 2018
Teme:
PLS
Online dostop:https://doi.org/10.3390/su10072441
https://www.mdpi.com/2071-1050/10/7/2441
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Izvleček: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.