The role of logistics strategy on firm performance of garment industry in Bangladesh

Abstract

The logistics strategy has an indispensable effect on routine decision making and imminent arrangements of the firms. The objective of this study is to examine the effects of logistics strategy on firm performance, e.g., tangible and intangible benefits of garment industry in Bangladesh. The study utilised quantitative method and furthermore recognises confirmatory factor analysis (CFA) to examine the association between observed variables and latent constructs. This research exploits SPSS version 20 and structural equation model (SEM) based on AMOS version 23 to analyse the data surveyed in the 120 garment factories positioned in export processing zone in addition to domestic factories of Bangladesh. The results reveal that logistics strategies are not significantly (p ≤ 0.05) associated with tangible and intangible firm performance of garment industry. The findings emphasise about upgradation of logistics infrastructure to formulate appropriate strategy in the garment industry of Bangladesh.