The Utilization of Long-Term Relationship and Supply Chain Performance in Improving SMEs Performance
American Journal of Theoretical and Applied Business
Volume 4, Issue 3, September 2018, Pages: 79-89
Received: Sep. 25, 2018;
Accepted: Nov. 1, 2018;
Published: Dec. 26, 2018
Views 429 Downloads 42
Nur Prima Waluyowati, Department of Management, Economics and Business Faculty, Brawijaya University, Malang, Indonesia
Surachman, Department of Management, Economics and Business Faculty, Brawijaya University, Malang, Indonesia
Djumahir, Department of Management, Economics and Business Faculty, Brawijaya University, Malang, Indonesia
Siti Aisjah, Department of Management, Economics and Business Faculty, Brawijaya University, Malang, Indonesia
Since 2015, the Association of Southeast Asian Nations (ASEAN) single market or popularly known as ASEAN Economic Community (AEC) has been implemented. AEC provides opportunities to improve the economy of the region through the expansion of the international market for competitive products. With trade barriers are getting smaller, it is expected that many local products, especially those produced by SMEs could penetrate the ASEAN market. The main purposes of this study is to prove that the long-term relationships and the performance of the supply chain is an essential element in generating the company's performance. More specifically, the study aims to to analyze the direct effect of the long-term relationship on supply chain management and indirect effect trough the mediation of information technology, supply chain integration and information sharing.. This study was conducted on 194 respondents (SMEs) in Malang, East Java (Indonesia) using analytical tools of Structural Equation Modelling (SEM). The results showed that the long-term relationship in SMEs directly and significantly affect the use of information technology, information sharing, and integration of supply chain and supply chain performance. In addition, long-term relationship indirectly and signifiantly affect the performance of the supply chain through the infromation technology, supply chain integration and information sharing. However, the direct effect of information sharing on supply chain performance is not significant. These results demonstrate that the long-term relationships are crucial for SMEs in Malang to face the increasingly fierce competition in the future.
Nur Prima Waluyowati,
The Utilization of Long-Term Relationship and Supply Chain Performance in Improving SMEs Performance, American Journal of Theoretical and Applied Business.
Vol. 4, No. 3,
2018, pp. 79-89.
Li, Suhong & Ragu-Nathan, Bhanu & Ragu-Nathan, T & Rao, Subba. (2006). The Impact of Supply Chain Management Practices on Competitive Advantage and Organizational Performance. Omega. 34. 107-124. 10.1016/j.omega.2004.08.002.
Anatan, Lina. 2010. Supply Chain Management Teori dan Aplikasi. Alfabeta. Bandung.
Koçuglu, Ipek., Salih Zeki Imamoglu, Hüseyin Incea, Halit Keskina. 2011. The effect of supply chain integration on information of sharing: Enhancing the supply chain performance. Procedia Social and Behavioral Sciences.
Prajogo, Daniel and Jan Olhager. 2012. Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistic integration. International J. Production Economics.
Heizer, J. H., and Render, B. Principles of Operation Management. 2008. New York: Pearson Prentice Hall.
Aprianiningsih, Hesti, Achmad Holil Noor Ali, Anisah Herdiyanti. 2014. Analisis Pengaruh Implementasi Teknologi Informasi terhadap Kinerja Rantai pasokan dengan Integrasi Rantai pasokan sebagai mediator pada sektor Industri Tekstil dan Produk Tekstil (TPT). ITS Paper.
Levy, M., Powell, P. and Yetton, P. (2001), “SMEs; aligning IS and the strategic context”, Journal of Information Technology, Vol. 16 No. 3, pp. 133-44. (PDF) Supply chain management practices of SMEs: From a business growth perspective. Available from: https://www.researchgate.net/publication/220306368_Supply_chain_management_practices_of_SMEs_From_a_business_growth_perspective [accessed Oct 23 2018].
Johnson, M. & Mena, C. 2008. Supply Chain Management for Servitised Products: A Multi-industry Case Study. International Journal of Production Economics, 114 (1), 27–39
Bagheri, Mohammad., Mahdi & Abdul, Abu & Soltani, Iraj & Mardani, Abbas & Kish Hazrat Soltan, Ehsan. (2014). The Role of Su pply Chain Antecedents on Supply Chain Agility in SMEs: The Conceptual Framework. Jurnal Teknologi. 66. 53-60. 10.11113/jt.v66.1826.
Ariani, Desi and Dwiyanto, Bambang Munas. 2013. Analisis Pengaruh Supply Chain Management terhadap Kinerja Perusahaan (Studi pada Industri Kecil dan Menengah Makanan Olahan Khas Padang Sumatra Barat. Diponegoro Journal of Management.
Simchi-Levi, David, Phillip Kaminsky, and Edith Simchi-Levi (2003). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies, Homewood, IL: Richard D. Erwin.
Pujawan, I Nyoman. 2010. Supply Chain Management. Institut Teknologi Sepuluh Nopember, Surabaya.
P. Jongkyung, S. Kitae, T. Chang, (2010), An integrative framework for supplier relationship management, Industrial Management & Data Systems Vol. 110 No. 4, 2010 pp. 495-515. (PDF) A Conceptual Integrated Model to Supplier Relationship Management – From the Manufacturing Industry Perspective. Available from: https://www.researchgate.net/publication/264211900_A_Conceptual_Integrated_Model_to_Supplier_Relationship_Management_-_From_the_Manufacturing_Industry_Perspective [accessed Oct 23 2018].
Hwang, Y. D., Lin, Y., Lyu, J. 2008. The performance evaluation of SCOR sourcing process: The case study of Taiwan’s TFT-LCD industry. International Journal of Production Economics 115, 411-423.
Chopra, S., Meindl, P. 2004. Supply Chain Management: Strategy, Planning and Operation, third edition, Prentice Hall, New Jersey, USA.
Sheu, C., Yen, H. R., & Chae, B. (2006). Determinants of supplier-retailer collaboration: Evidence from an international study. International Journal of Operations & Productions Management, 26 (1), 24-49.
Central Bureau of Statistics (BPS) of East Java. 2013. The number of Small and Medium Enterprises (SMEs) in Malang, East Java. Available on https://jatim.bps.go.id/. Access online on 13 Oct 2018.
Hair, Joseph F., Bill Black, Barry Babin, Rolph E Anderson and Roland L Tatham. 1998. Multivariate Data Analysis. Upper Saddle River: person Education, New York.
Kline, R. (2005). Principles and practices of structural equation modeling (2n ed.). New York: Guilford Press.
Bentler, P. M. (1998). EQS structural equations program manual. Encino, CA: Multivariate Software.
Omsa, Sirajuddin, Abdullah, Ibrahim H., and Jamali, Hisnol. 2017. Five Competitive Forces Model and the Implementation of Porter’s Generic Strategies to Gain Firm Performances. Science Journal of Business and Management. Vol. 5 (1): 9-16, doi: 10.11648/j.sjbm.20170501.12.
Dyer, Jeffrey H. and Singh, Harbir. 1998. The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage. The Academy of Management Review. 23 (4) · October 1998. DOI: 10.2307/259056.
Alomar, Madani. Zbigniew J. Pasek. 2014. Linking supply chain strategy and processes to performance improvement. Proceedings of the 47th CIRP Conference on ManufacturingSystems.
Mentzer, John T., DeWitt, William., Keebler, James S., Min, Soonhong., Nix, Nancy W., Smith, Carlo D., and Zacharia, Zach G. 2001. Defining Supply Chain Management. Journal of Business Logistics, Vol. 22 (2), https://doi.org/10.1002/j.2158-1592.2001.tb0000q.x.
McLeod, Raymond and Schell, George P. 2007. Management Information Systems. The University of Virginia: Pearson/Prentice Hall.
Ulwan, M. N., 2014. Teknik Pengambilan Sampel Dengan Metode Purposive Sampling. http://www.portal-statistik.com/
Benton, W. C. and Maloni, M. 2005. The influence of power driven buyer/seller relationships on supply chain satisfaction. Journal of Operations Management. Vol. 23, pp. 1-22.