Logistics Resources, Capabilities, Operational and Financial Performance of the Textile Firms of Karachi

A Contingency and Configuration Approach


  • S M Huzaifa Bin Wasim Uddin University of Karachi


Logistic knowledge, Financial performance, Manufacturing industry, PLS-SEM, Karachi


This study investigates how to enhance the skills and operational performance of firms depending on the circumstances of organizations through logistic resources in the manufacturing industry of Karachi, Pakistan. The current research had employed resource based view theory for the development of hypothesis and analyzed that collected data using PLS-SEM through Smart PLS 3.2.9. The findings of the study showed that logistic information had positive and significant effect on customer service capability, financial performance, operational performance, and resource integration capability, logistic location had a positive and significant effect on customer service capability, operational performance, and resource integration capability, logistic infrastructure had a positive and significant effect on financial performance and resource integration capability, and logistic knowledge had a negative but significant effect on OP .Results also suggested that logistic knowledge had negative and insignificant effect on customer service capability, financial performance and resource integration capability, logistic infrastructure had negative and insignificant effect on customer service capability and OP. Along with, Logistic location had a negative and insignificant effect on FP. Managers who concentrate on one dimension only and ignore others can choose inappropriate objectives. In particular, if they are not informed about the effects of logistics resource trends on skills and organizational efficiency, managers might invest in improper logistics services to enhance the unique capabilities of enterprises. Managers are recommended to consider all the dimension of logistic resources to improve it over all capabilities.


Download data is not yet available.


Afshan, N., Chatterjee, S., & Chhetri, P. (2018). Impact of information technology and relational aspect on supply chain collaboration leading to financial performance. Benchmarking: An International Journal.

Albasu, J., & Nyameh, J. (2017). Relevance of stakeholders theory, organizational identity theory and social exchange theory to corporate social responsibility and employees performance in the commercial banks in nigeria. International Journal of Business, Economics and Management, 4(5), 95-105.

Amit, R., & Schoemaker, P.J. (1993). Strategic assets and organizational rent. Strategic management journal, 14(1), 33-46.

Attia, A., & Salama, I. (2018). Knowledge management capability and supply chain management practices in the saudi food industry. Business Process Management Journal.

Ayoub, H.F., Abdallah, A.B., & Suifan, T.S. (2017). The effect of supply chain integration on technical innovation in jordan. Benchmarking: An International Journal.

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of management, 17(1), 99-120.

Bask, A., & Rajahonka, M. (2017). The role of environmental sustainability in the freight transport mode choice. International Journal of Physical Distribution & Logistics Management.

Bryman, A., & Bell, E. (2007). Business research strategies. Business research methods.

Coase, R.H. (1993). The nature of the firm: Origins, evolution, and development: Oxford University Press, USA.

Connelly, L.M. (2014). Ethical considerations in research studies. Medsurg Nursing, 23(1), 54.

Crainic, T.G., & Laporte, G. (2016). Transportation in supply chain management: Recent advances and research prospects. International Journal of Production Research, 54(2), 403-404.

Dubrovsky, V., Yaroshevich, N., & Kuzmin, E. (2016). Transactional approach in assessment of operational performance of companies in transport infrastructure. Journal of Industrial Engineering and Management, 9(2), 389-412.

Durst, S., & Evangelista, P. (2016). Knowledge management in the logistics service industry: A case study analysis in sweden and italy. Theory and Applications in the Knowledge Economy, 763-769.

Etikan, I., Musa, S.A., & Alkassim, R.S. (2016). Comparison of convenience sampling and purposive sampling. American journal of theoretical and applied statistics, 5(1), 1-4.

Fornell, C., & Larcker, D.F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of marketing research, 18(3), 382-388.

Freeman, J., & Styles, C. (2014). Does location matter to export performance? International Marketing Review.

Gefen, D., Straub, D., & Boudreau, M.-C. (2000). Structural equation modeling and regression: Guidelines for research practice. Communications of the association for information systems, 4(1), 7.

Goddard, R., & Villanova, P. (2006). Designing surveys and questionnaires for research. The psychology research handbook: A guide for graduate students and research assistants, 114-125.

Groves, R.M., Fowler Jr, F.J., Couper, M.P., Lepkowski, J.M., Singer, E., & Tourangeau, R. (2011). Survey methodology (Vol. 561): John Wiley & Sons.

Hair, J.F., Ringle, C.M., & Sarstedt, M. (2011). Pls-sem: Indeed a silver bullet. Journal of Marketing theory and Practice, 19(2), 139–152.

Hair, J.F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V.G. (2014). Partial least squares structural equation modeling (pls-sem) an emerging tool in business research. European Business Review, 26(2), 106-121.

Huo, B., Zhao, X., & Zhou, H. (2014). The effects of competitive environment on supply chain information sharing and performance: An empirical study in china. Production and Operations Management, 23(4), 552-569.

Jayasinghe, R.S., Chileshe, N., & Rameezdeen, R. (2019). Information-based quality management in reverse logistics supply chain. Benchmarking: An International Journal.

Jessi, B., Jutta, S., & Wood, G. (2016). Provenance white paper. Estados Unidos da América.

Kamasak, R. (2017). The contribution of tangible and intangible resources, and capabilities to a firm’s profitability and market performance. European Journal of Management and Business Economics.

Krejcie, R.V., & Morgan, D.W. (1970). Determining sample size for research activities. Educational and psychological measurement, 30(3), 607-610.

Krysiński, M., & Miller, P. (2017). The impact of an integrated logistics platform on the management of logistics. Przegląd Nauk Ekonomicznych(25), 91-100.

Lockett, A. (2005). Edith penrose's legacy to the resource‐based view. Managerial and Decision Economics, 26(2), 83-98.

Lockett, A., & Thompson, S. (2001). The resource-based view and economics. Journal of management, 27(6), 723-754.

Lockett, A., Thompson, S., & Morgenstern, U. (2009). The development of the resource‐based view of the firm: A critical appraisal. International journal of management reviews, 11(1), 9-28.

Lyu, G., Chen, L., & Huo, B. (2019a). The impact of logistics platforms and location on logistics resource integration and operational performance. The International Journal of Logistics Management.

Lyu, G., Chen, L., & Huo, B. (2019b). Logistics resources, capabilities and operational performance. Industrial Management & Data Systems.

Paciarotti, C., & Torregiani, F. (2020). The logistics of the short food supply chain: A literature review. Sustainable Production and Consumption.

Puertas, R., Martí, L., & García, L. (2014). Logistics performance and export competitiveness: European experience. Empirica, 41(3), 467-480.

Riley, J.M., Klein, R., Miller, J., & Sridharan, V. (2016). How internal integration, information sharing, and training affect supply chain risk management capabilities. International Journal of Physical Distribution & Logistics Management.

Rivera, L., Sheffi, Y., & Knoppen, D. (2016). Logistics clusters: The impact of further agglomeration, training and firm size on collaboration and value added services. International Journal of Production Economics, 179, 285-294.

Ryoo, S.Y., & Kim, K.K. (2015). The impact of knowledge complementarities on supply chain performance through knowledge exchange. Expert Systems with Applications, 42(6), 3029-3040.

Saunders, M., Lewis, P., & Thornhill, A. (2007). Research methods. Business Students 4th edition Pearson Education Limited, England.

Shou, Y., Shao, J., & Chen, A. (2017). Relational resources and performance of chinese third-party logistics providers. International Journal of Physical Distribution & Logistics Management.

Steinmo, M., & Jakobsen, S. (2013). How to green an industry through coopetition: The role of proximity in an r&d alliance in creating environmental innovations. Paper presented at the 35th DRUID Celebration Conference.

Stevens, G.C., & Johnson, M. (2016). Integrating the supply chain… 25 years on. International Journal of Physical Distribution & Logistics Management.

Strandhagen, J.O., Vallandingham, L.R., Fragapane, G., Strandhagen, J.W., Stangeland, A.B.H., & Sharma, N. (2017). Logistics 4.0 and emerging sustainable business models. Advances in Manufacturing, 5(4), 359-369.

Takata, H. (2016). Effects of industry forces, market orientation, and marketing capabilities on business performance: An empirical analysis of japanese manufacturers from 2009 to 2011. Journal of Business Research, 69(12), 5611-5619.

Teece, D.J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic management journal, 18(7), 509-533.

Theriou, N.G., Aggelidis, V., & Theriou, G. (2014). The mediating effect of the knowledge management process to the firm’s performance: A resource-based view.

Ullah, A., Pinglu, C., Ullah, S., Zaman, M., & Hashmi, S.H. (2020). The nexus between capital structure, firm-specific factors, macroeconomic factors and financial performance in the textile sector of pakistan. Heliyon, 6(8), e04741.

Van Wyk, B. (2012). Research design and methods part i. University of Western Cape.

Wang, Y., Peng, S., Zhou, X., Mahmoudi, M., & Zhen, L. (2020). Green logistics location-routing problem with eco-packages. Transportation Research Part E: Logistics and Transportation Review, 143, 102118.

Wang, Y., Wu, W., & Zhang, Y. (2016). The research on chinese logistics mode of agricultural products transformation based on contingency theory. Management & Engineering(23), 185.

Wernerfelt, B. (1984). A resource‐based view of the firm. Strategic management journal, 5(2), 171-180.

Wong, C.W., Lai, K.-h., Cheng, T., & Lun, Y.V. (2015). The role of it-enabled collaborative decision making in inter-organizational information integration to improve customer service performance. International Journal of Production Economics, 159, 56-65.

Wu, L., Chuang, C.-H., & Hsu, C.-H. (2014). Information sharing and collaborative behaviors in enabling supply chain performance: A social exchange perspective. International Journal of Production Economics, 148, 122-132.

Yin, Y., Stecke, K.E., & Li, D. (2018). The evolution of production systems from industry 2.0 through industry 4.0. International Journal of Production Research, 56(1-2), 848-861.

Yu, W., Jacobs, M.A., Chavez, R., & Feng, M. (2017). The impacts of it capability and marketing capability on supply chain integration: A resource-based perspective. International Journal of Production Research, 55(14), 4196-4211.

Yu, Y., Wang, X., Zhong, R.Y., & Huang, G.Q. (2016). E-commerce logistics in supply chain management: Practice perspective. Procedia Cirp, 52, 179-185.

Zardini, A., Rossignoli, C., & Ricciardi, F. (2016). A bottom-up path for it management success: From infrastructure quality to competitive excellence. Journal of business research, 69(5), 1747-1752.

Zhou, F., He, Y., Ma, P., & Mahto, R.V. (2020). Knowledge management practice of medical cloud logistics industry: Transportation resource semantic discovery based on ontology modelling. Journal of Intellectual Capital.

Additional Files



How to Cite

S M Huzaifa Bin Wasim Uddin. (2021). Logistics Resources, Capabilities, Operational and Financial Performance of the Textile Firms of Karachi: A Contingency and Configuration Approach. International Journal of Business Studies, 2(1). Retrieved from https://brjournals.comsresearch.com/index.php/ijbs/article/view/47



Research Articles