Impact of E-Procurement and Vertical Integration on Textile Knitting Firms’ Performance

Abstract

The study addresses two vital contemporary variables i.e., E-procurement and Vertical integration and the impact that they might have on firm performance. IT today has a significant impact on business activities, speeding up the adoption of e-contracting and marketing in many industries. We analysed firm motivations and measured their performance to evaluate their advantages by implementing electronic procurement for their business on the electronic market. Moreover, the vertical integration effects on firm performance are similarly essential but considerably less known, mainly because the vertical integration decision is endogenous. This research is aimed at elaborately assessing the impact of both the independent variables on the firm performance through a survey process. Top Pakistani textile knitting firms have been chosen as the respondents of the research instrument and moreover, their responses have been thoroughly and statistically analyzed. Furthermore, regression and correlation analysis has been used to study the relationship of the independent variables with the dependent variables. Based on the data derived from these models, results were drawn and it was concluded that both the chosen variables can impact the firm’s performance positively. All the while, the existing literature on both the variables was regarded highly and has been used to formulate the hypotheses for the study. Through this study, we hope to observe how textile knitting firms in Pakistan can benefit from the implementation of these variables.