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Sustainability 2018, 10(7), 2441; https://doi.org/10.3390/su10072441

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

1
Department of Industrial Engineering and Manufacturing 1, Universidad Autónoma de Ciudad Juárez, Ave. Del Charro 450 N, Col. Partido Díaz, Ciudad Juárez 32310, Mexico
2
Department of Electrical and Computing Engineering 2, Universidad Autónoma de Ciudad Juárez, Ave. Del Charro 450 N, Col. Partido Díaz, Ciudad Juárez 32310, Mexico
3
Tecnológico Nacional de México 3, Instituto Tecnológico de Orizaba, Ave. Oriente 9 No. 852, Col. Emiliano Zapata, Orizaba 94320, Mexico
*
Author to whom correspondence should be addressed.
Received: 16 May 2018 / Revised: 29 June 2018 / Accepted: 10 July 2018 / Published: 12 July 2018
(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)
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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. View Full-Text
Keywords: government support; market proximity; agility; supply chain; PLS government support; market proximity; agility; supply chain; PLS
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).
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Avelar-Sosa, L.; García-Alcaraz, J.L.; Mejía-Muñoz, J.M.; Maldonado-Macías, A.A.; Hernández, G.A. Government Support and Market Proximity: Exploring Their Relationship with Supply Chain Agility and Financial performance. Sustainability 2018, 10, 2441.

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