The effects of inbound logistics capability on firm performance- A study on garment industry in Bangladesh,

Abstract

Capabilities are the complex bundles of knowledge and skill applicable in management for effective and efficient utilization of assets in the organization. Logistics capabilities are the ability to exploit firm resources acquiring competitive advantage for the superior firm performance. The purpose of this research is to examine the effects of inbound logistics capability on firm performance in terms of tangible and intangible benefits. A quantitative method has been used and also identifies Confirmatory Factor Analysis (CFA) to test the relationship between observed variables and latent constructs. This research employs SPSS version 20 And Structural Equation Model (SEM) based on AMOS version 23 to analyze the data surveyed in the 120 garment factories located in export processing zone as well as domestic factories of the capital city–Dhaka, Bangladesh. The results found that inbound logistics capabilities are positively associated with tangible firm performance e.g. ROA, reduced cost and improve productivity whereas negatively associated with intangible firm performance e.g. customer satisfaction. The findings of research highlight about up gradation of inbound logistics capabilities in the garment industry. The result of this study provides valuable insights into logistics capability constructs for the policymakers, academics, and other users to improve firm performance.