Driving Supply Chain Finance Adoption: Exploring the Interplay of Innovation Capabilities and Market Response

Abstract

The potential for enhanced performance within the textile and apparel sector has the capacity to bolster the competitiveness of Indonesia's industry. This study examines the impact of innovation capability and market responsiveness on the adoption of supply chain financing through supply chain integration in the textile and apparel manufacturing sector in Indonesia. A sample of one hundred thirty-five managers from textile and apparel manufacturing companies was selected using random sampling methodology. Subsequently, the collected data was subjected to analysis using SmartPLS 3.0 software. The empirical findings suggest a positive relationship between the ability to innovate and the ability to respond to market dynamics, and the likelihood of adopting supply chain financing. The research findings has the capability to provide significant insights to managers operating within the textile and apparel manufacturing industry in Indonesia, so helping them to improve business performance and strengthen their competitive advantage.