The Impact of Supply Chain Management Practices on Organisational Performance in Pakistan’s Textile Industry

Abstract

Pakistan’s textile industry operates within an increasingly competitive environment in which supply chain efficiency, supplier coordination, customer relationships, information exchange, and technological capability can influence organisational performance. This study examined the effects of supply chain management practices on organisational performance in Pakistan’s textile industry, with particular attention to strategic supplier partnerships, customer relationships, level of information sharing, quality of information sharing, and advanced technology. A quantitative, cross-sectional research design based on a positivist philosophy and deductive approach was adopted. Primary data were collected through structured questionnaires from 211 managerial respondents working in textile firms. Purposive sampling was used to select participants with relevant knowledge of supply chain operations. Descriptive statistics, Cronbach’s alpha, and multiple regression analysis were employed for data analysis. The regression model was statistically significant and explained 66.5% of the variation in organisational performance (R² = .665; adjusted R² = .657; F = 81.539, p < .001). Customer relationship management emerged as the strongest predictor of organisational performance (β = .482, p < .001), followed by strategic supplier partnership (β = .305, p < .001), quality of information sharing (β = .230, p < .001), and level of information sharing (β = .183, p < .001). Advanced technology showed a positive but statistically non-significant effect (β = .052, p = .175). The findings indicate that Pakistani textile firms can improve performance by developing stronger supplier partnerships, strengthening customer relationships, and establishing accurate and timely information-sharing mechanisms. The findings further suggest that technology investment alone may not improve performance unless it is accompanied by effective organisational processes, employee capabilities, and supply chain integration.