Effect of strategic agility, innovation capability, and technology adoption through supply chain integration on the firm performance moderated by environmental turbulence in Indonesia’s textile industry

Textile industry involves a lengthy process from upstream to downstream, making supply chain integration crucial for enhancing firm performance. This study explores various factors that can boost supply chain integration and company performance in Indonesia's textile sector, including strategic agility, innovation capability, and technology adoption. The research is grounded in resource-based-view and market-based-view theories, suggesting that companies can optimize their resources and collaborate effectively with supply chain partners to enhance industry performance. Additionally, the study considers environmental turbulence as a moderating variable. Utilizing a quantitative approach with judgmental sampling, the research collected data through a structured questionnaire, resulting in 270 valid responses. The data was analyzed using the partial least squares structural equation modeling (PLS-SEM) method with SmartPLS 4.0 software. Findings indicate that strategic agility, innovation capability, and technology adoption significantly influence firm performance through supply chain integration, while environmental turbulence notably moderates the relationship between innovation capability and supply chain integration on firm performance. The study recommends that textile companies prioritize agility, strategic innovation, and technology adoption to enhance their integration with supply chain partners. It underscores the critical role of supply chain integration in improving company performance and the impact of environmental turbulence as a moderating factor.