Testing the Effects of Agile and Flexible Supply Chain on the Firm Performance Through SEM

Abstract

High competition, continuous, and rapid changing in consumer demands push companies finding differentiation ways to gain competitive advantage. Supply chain and logistics practices have been seen as the core strategic tools to survive for companies. In this research, the impacts of agile and flexible supply chain practices on the customer satisfaction, service quality, sales performance, and profitability are examined. As a research area, fast fashion industry was chosen. To the aim, a theoretical model was developed and tested through structural equation modeling (SEM). The results reveal that companies performing agile and flexible supply chains can reap the benefits in terms of service quality and customer satisfaction, and at the end can reap the resulting financial benefits in terms of increased sales and profits.