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

Liliana Avelar-Sosa, Jorge L. García-Alcaraz, José M. Mejía-Muñoz, Aidé A. Maldonado-Macías and Giner Alor Hernández
Additional contact information
Liliana Avelar-Sosa: Department of Industrial Engineering and Manufacturing 1, Universidad Autónoma de Ciudad Juárez, Ave. Del Charro 450 N, Col. Partido Díaz, Ciudad Juárez 32310, Mexico
Jorge L. García-Alcaraz: Department of Industrial Engineering and Manufacturing 1, Universidad Autónoma de Ciudad Juárez, Ave. Del Charro 450 N, Col. Partido Díaz, Ciudad Juárez 32310, Mexico
José M. Mejía-Muñoz: Department of Electrical and Computing Engineering 2, Universidad Autónoma de Ciudad Juárez, Ave. Del Charro 450 N, Col. Partido Díaz, Ciudad Juárez 32310, Mexico
Aidé A. Maldonado-Macías: Department of Industrial Engineering and Manufacturing 1, Universidad Autónoma de Ciudad Juárez, Ave. Del Charro 450 N, Col. Partido Díaz, Ciudad Juárez 32310, Mexico
Giner Alor Hernández: Tecnológico Nacional de México 3, Instituto Tecnológico de Orizaba, Ave. Oriente 9 No. 852, Col. Emiliano Zapata, Orizaba 94320, Mexico

Sustainability, 2018, vol. 10, issue 7, 1-20

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.

Keywords: government support; market proximity; agility; supply chain; PLS (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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