Leveraging dynamic capabilities through relationship management: dual integration and supply chain performance in Pakistan’s textile sector

Purpose This study examines how customer–supplier relationship management (CSRM) enhances supply chain performance (SCP) in Pakistan’s textile sector by investigating the mediating role of customer integration supply chain integration with customers (SCIC) and supplier integration (SCI-S) supply chain integration with suppliers (SCIS), grounded in the dynamic capabilities theory (DCT). Design/methodology/approach A structured questionnaire was administered to 356 textile firms across Pakistan. Data were analyzed by employing descriptive statistics, reliability and validity assessments, and path analysis using SmartPLS to test hypothesized relationships. Findings Results indicate that CSRM significantly boosts SCP both directly and indirectly. SCIC and SCIS serve as partial mediators in the CSRM–SCP relationship, highlighting the importance of dual integration, coordinating strategically with both customers and suppliers to enhance overall performance. Practical implications Textile firms and policymakers can leverage CSRM and strategic integration to enhance operational resilience. Investments in relationship-building with both customers and suppliers can foster agility, elevate performance and strengthen global competitiveness. Results can also be used by the firms in other developing economies having a similar context, for example Bangladesh, India and Vietnam. Originality/value The study established associations by unpacking the mechanisms and boundary conditions through which supply chain relationships translate into performance, positioning CSRM as a higher-order dynamic capability realized through dual customer and SCI-S. It further extends DCT by reframing integration as a relationally orchestrated capability and empirically demonstrating its relevance in institutionally constrained and digitally fragmented textile supply chains in emerging economies.