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
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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
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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.
Long Term Relationships, Supply Chain Integration, Supply Chain Performance, Information Technology, Information Sharing, Small and Medium Enterprises (SMEs)
To cite this article
Nur Prima Waluyowati, Surachman, Djumahir, Siti Aisjah, 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. doi: 10.11648/j.ajtab.20180403.11
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