Strategic sourcing, sourcing capability and firm performance in the US textile and apparel industry

Abstract

PurposeWith the intense competition in the global textile and apparel industry and the uncertainty of the global textile and apparel business environment, sourcing has increasingly assumed a pivotal strategic role in textile and apparel supply chain management. Strategic sourcing is crucial for firms to obtain or sustain competitiveness in world marketplace. The purpose of this paper is to examine empirically how strategic sourcing and sourcing capability impact firm performance in the US textile and apparel industry.Design/methodology/approachEmpirical survey‐based research methodology was implemented to examine the research questions and model. Data were collected from the 152 firms in the US textile and apparel industry.FindingsThe findings show that strategic sourcing leads to greater emphasis on sourcing capability and positively impacts firm performance.Originality/valueThe study contributes to understanding of supply chain management using data from the US textile and apparel industry to investigate the relationships between strategic sourcing, sourcing capability, and firm performance and to test the research hypotheses by quantitative survey‐based research method. The textile and apparel industry is dynamic, global, diverse, and complex, and is a prime exemplifier of globalization. The study clearly demonstrates that strategic sourcing plays a vital role in a firm's business operations and puts greater emphasis on developing the sourcing manager's business capability.