Impact of Supplier Relational Capital on Supply Chain Performance in Pakistani Textile Industry

Abstract

This research aims to improve supply chain performance (SCP) through successful usage of supplier relational capital (SRC). This can be through investigating the effect of enterprise resource planning (ERP) system and organizational culture (OC) on the relationship between supplier relational capital and supply chain performance in the context of Pakistani manufacturing firms. The questionnaire survey was posted to the Pakistani manufacturing firms that are using ERP system. A total of hundred (100) usable responses were received and used in the analysis. The findings of this research indicated that there is a strong and significant positive relationship between SRC on SCP. In addition, the results also show a significant and positive influence of organizational culture on the relationship between SRC and SCP. Moreover, a significant but moderate influence of ERP on SCP was observed. The evidences show that textile firms in Pakistan not only have to improve their relationship with suppliers but also promote a conducive organizational culture to reap the benefits of ERP implementation and consequentially supply chain performance.