Effect of Strategic Agility and Technology Adoption on Firm Performance Through Supply Chain Integration in the Textile Industry of Indonesia

Purpose: This study aims to examine the key factors that enhance supply chain integration and firm performance in Indonesia’s textile industry, focusing specifically on the roles of strategic agility and technology adoption. Additionally, it investigates how environmental turbulence moderates the relationship between supply chain integration and firm performance. Design/methodology/approach: Using a quantitative approach and purposive sampling, data were collected through an online structured questionnaire targeting managers, directors, and commissioners of textile companies in Java, Indonesia. A total of 270 valid responses were obtained. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0 software. Findings: Strategic agility has a significant positive effect on firm performance mediated by supply chain integration, while technology adoption shows a significant negative effect on both supply chain integration and firm performance. Environmental turbulence significantly moderates the relationship between supply chain integration and firm performance, indicating that the benefits of integration are somewhat reduced under unstable conditions. Research limitations/implications: The study is limited by its non-probability sampling method and geographic focus on Java, which may affect the generalizability of the results. Practically, the findings highlight the need for textile firms to focus on enhancing strategic agility and carefully managing technology adoption to improve supply chain integration and performance, especially in turbulent environments. Originality/value: This study contributes novel insights to the technology adoption literature by revealing its potentially negative impact on supply chain integration and firm performance when implemented improperly. This is particularly relevant for the Indonesian textile sector, which continues to face challenges in adopting advanced technologies effectively.