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Open AccessArticle

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

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Department of Industrial Engineering and Manufacturing 1, Universidad Autónoma de Ciudad Juárez, Ave. Del Charro 450 N, Col. Partido Díaz, Ciudad Juárez 32310, Mexico
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Department of Electrical and Computing Engineering 2, Universidad Autónoma de Ciudad Juárez, Ave. Del Charro 450 N, Col. Partido Díaz, Ciudad Juárez 32310, Mexico
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Tecnológico Nacional de México 3, Instituto Tecnológico de Orizaba, Ave. Oriente 9 No. 852, Col. Emiliano Zapata, Orizaba 94320, Mexico
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Author to whom correspondence should be addressed.
Sustainability 2018, 10(7), 2441; https://doi.org/10.3390/su10072441
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)
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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MDPI and ACS Style

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. https://doi.org/10.3390/su10072441

AMA Style

Avelar-Sosa L, García-Alcaraz JL, Mejía-Muñoz JM, Maldonado-Macías AA, Hernández GA. Government Support and Market Proximity: Exploring Their Relationship with Supply Chain Agility and Financial performance. Sustainability. 2018; 10(7):2441. https://doi.org/10.3390/su10072441

Chicago/Turabian Style

Avelar-Sosa, Liliana; García-Alcaraz, Jorge L.; Mejía-Muñoz, José M.; Maldonado-Macías, Aidé A.; Hernández, Giner A. 2018. "Government Support and Market Proximity: Exploring Their Relationship with Supply Chain Agility and Financial performance" Sustainability 10, no. 7: 2441. https://doi.org/10.3390/su10072441

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