American Journal of Theoretical and Applied Business

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The Utilization of Long-Term Relationship and Supply Chain Performance in Improving SMEs Performance

Received: 25 September 2018    Accepted: 01 November 2018    Published: 26 December 2018
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Abstract

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.

DOI 10.11648/j.ajtab.20180403.11
Published in American Journal of Theoretical and Applied Business (Volume 4, Issue 3, September 2018)
Page(s) 79-89
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Long Term Relationships, Supply Chain Integration, Supply Chain Performance, Information Technology, Information Sharing, Small and Medium Enterprises (SMEs)

References
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[7] 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].
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[14] 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.
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Author Information
  • Department of Management, Economics and Business Faculty, Brawijaya University, Malang, Indonesia

  • Department of Management, Economics and Business Faculty, Brawijaya University, Malang, Indonesia

  • Department of Management, Economics and Business Faculty, Brawijaya University, Malang, Indonesia

  • Department of Management, Economics and Business Faculty, Brawijaya University, Malang, Indonesia

Cite This Article
  • APA Style

    Nur Prima Waluyowati, Surachman, Djumahir, Siti Aisjah. (2018). The Utilization of Long-Term Relationship and Supply Chain Performance in Improving SMEs Performance. American Journal of Theoretical and Applied Business, 4(3), 79-89. https://doi.org/10.11648/j.ajtab.20180403.11

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    ACS Style

    Nur Prima Waluyowati; Surachman; Djumahir; Siti Aisjah. The Utilization of Long-Term Relationship and Supply Chain Performance in Improving SMEs Performance. Am. J. Theor. Appl. Bus. 2018, 4(3), 79-89. doi: 10.11648/j.ajtab.20180403.11

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    AMA Style

    Nur Prima Waluyowati, Surachman, Djumahir, Siti Aisjah. The Utilization of Long-Term Relationship and Supply Chain Performance in Improving SMEs Performance. Am J Theor Appl Bus. 2018;4(3):79-89. doi: 10.11648/j.ajtab.20180403.11

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  • @article{10.11648/j.ajtab.20180403.11,
      author = {Nur Prima Waluyowati and Surachman and Djumahir and Siti Aisjah},
      title = {The Utilization of Long-Term Relationship and Supply Chain Performance in Improving SMEs Performance},
      journal = {American Journal of Theoretical and Applied Business},
      volume = {4},
      number = {3},
      pages = {79-89},
      doi = {10.11648/j.ajtab.20180403.11},
      url = {https://doi.org/10.11648/j.ajtab.20180403.11},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ajtab.20180403.11},
      abstract = {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.},
     year = {2018}
    }
    

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  • TY  - JOUR
    T1  - The Utilization of Long-Term Relationship and Supply Chain Performance in Improving SMEs Performance
    AU  - Nur Prima Waluyowati
    AU  - Surachman
    AU  - Djumahir
    AU  - Siti Aisjah
    Y1  - 2018/12/26
    PY  - 2018
    N1  - https://doi.org/10.11648/j.ajtab.20180403.11
    DO  - 10.11648/j.ajtab.20180403.11
    T2  - American Journal of Theoretical and Applied Business
    JF  - American Journal of Theoretical and Applied Business
    JO  - American Journal of Theoretical and Applied Business
    SP  - 79
    EP  - 89
    PB  - Science Publishing Group
    SN  - 2469-7842
    UR  - https://doi.org/10.11648/j.ajtab.20180403.11
    AB  - 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.
    VL  - 4
    IS  - 3
    ER  - 

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