LEVERAGING INNOVATION TO ENHANCE SUPPLY CHAIN PERFORMANCE IN INDONESIAN MANUFACTURING: THE ROLES OF TECHNOLOGY, QUALITY MANAGEMENT, AND OPERATIONAL CAPABILITY
DOI:
https://doi.org/10.31539/costing.v7i6.13589Keywords:
Supply Chain Technology, Supply Chain PerformanceAbstract
Indonesia's manufacturing sector faces significant challenges due to deficiencies in quality management and information technology (IT) innovation. The objectives of this research are to analyze the influence of Supply Chain Operational Abilities, Supply Chain Technology and Quality Management on Innovation Capability. Also investigate the mediation effect of Innovation Capability on the impact of Supply Chain Operational Abilities, Supply Chain Technology, and Quality Management on Supply Chain Performance. This study is quantitative research and, based on its objectives, it belongs to the type of explanatory research. The population of this research is the supply chain department employees in manufacturing companies in Indonesia with 330 respondents as the research sample. This research uses partial least squares-structural equation model (PLS-SEM) regression analysis to test the hypothesis. Research results demonstrated that Supply Chain Operational Abilities and Supply Chain Technology have a significant positive effect on Supply Chain Performance, but Quality Management does not significantly affect Supply Chain Performance directly. Innovation Capability serves as a significant mediator for the impact of Supply Chain Operational Abilities, Supply Chain Technology and quality management on Supply Chain Performance.
References
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Singhry, H. B. (2015). Effect of Supply Chain Technology, Supply Chain Collaboration and Innovation Capability on Supply Chain Performance of Manufacturing Companies. Journal of Business Studies Quarterly, 7(2), 258–273.
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Song, H., Turson, R., Ganguly, A., & Yu, K. (2017). Evaluating the effects of supply chain quality management on food firms’ performance. International Journal of Operations & Production Management, 37(10), 1541–1562. https://doi.org/10.1108/IJOPM-11-2015-0666
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Teece, D. J. (2010). Alfred Chandler and “capabilities” theories of strategy and management. Industrial and Corporate Change, 19(2), 297–316. https://doi.org/10.1093/icc/dtq008
Vanichchinchai, A., & Igel, B. (2011). The impact of total quality management on supply chain management and firm’s supply performance. International Journal of Production Research, 49(11), 3405–3424. https://doi.org/10.1080/00207543.2010.492805
Wu, F., Yeniyurt, S., Kim, D., & Cavusgil, S. T. (2006). The impact of information technology on supply chain capabilities and firm performance: A resource-based view. Industrial Marketing Management, 35(4), 493–504. https://doi.org/10.1016/j.indmarman.2005.05.003
Casadesús, M., & de Castro, R. (2005). How improving quality improves supply chain management: empirical study. The TQM Magazine, 17(4), 345–357. https://doi.org/10.1108/09544780510603189
Casula, M., Rangarajan, N., & Shields, P. (2021). The potential of working hypotheses for deductive exploratory research. Quality & Quantity, 55(5), 1703–1725. https://doi.org/10.1007/s11135-020-01072-9
Chansatitporn, N., & Pobkeeree, V. (2019). Leadership and quality management measurement models: an empirical study. International Journal of Health Care Quality Assurance, 33(1), 52–66. https://doi.org/10.1108/IJHCQA-07-2019-0118
Chauhan, C., Kaur, P., Arrawatia, R., Ractham, P., & Dhir, A. (2022). Supply chain collaboration and sustainable development goals (SDGs). Teamwork makes achieving SDGs dream work. Journal of Business Research, 147, 290–307. https://doi.org/10.1016/j.jbusres.2022.03.044
Collins, J. D., Worthington, W. J., Reyes, P. M., & Romero, M. (2010). Knowledge management, supply chain technologies, and firm performance. In Management Research Review (Vol. 33, Issue 10). https://doi.org/10.1108/01409171011083969
Deitz, G., Hansen, J., & Glenn Richey, R. (2009). Coerced integration: The effects of retailer supply chain technology mandates on supplier stock returns. International Journal of Physical Distribution & Logistics Management, 39(10). https://doi.org/10.1108/09600030911011423
Ferdinand, A. (2006). Structural Equation Modeling Dalam Penelitian Manajemen: Aplikasi Model-Model Rumit Dalam Penelitian Untuk Tesis Magister Dan Disertasi Doktor. Universitas Negeri Diponegoro.
Fosso Wamba, S., Akter, S., Coltman, T., & W.T. Ngai, E. (2015). Guest editorial: information technology-enabled supply chain management. Production Planning & Control, 26(12), 933–944. https://doi.org/10.1080/09537287.2014.1002025
Gaspersz, V. (2011). Total Quality Management. Gramedia.
Hair, J. F., Ringle, C. M., Gudergan, S. P., Fischer, A., Nitzl, C., & Menictas, C. (2019). Partial least squares structural equation modeling-based discrete choice modeling: an illustration in modeling retailer choice. Business Research, 12(1). https://doi.org/10.1007/s40685-018-0072-4
Hong, J., Liao, Y., Zhang, Y., & Yu, Z. (2019). The effect of supply chain quality management practices and capabilities on operational and innovation performance: Evidence from Chinese manufacturers. International Journal of Production Economics, 212, 227–235. https://doi.org/10.1016/j.ijpe.2019.01.036
Kamariah Kamaruddin, N., & Mohamed Udin, Z. (2009). Supply chain technology adoption in Malaysian automotive suppliers. Journal of Manufacturing Technology Management, 20(3), 385–403. https://doi.org/10.1108/17410380910936819
Kumar, G., & Nath Banerjee, R. (2014). Supply chain collaboration index: an instrument to measure the depth of collaboration. Benchmarking: An International Journal, 21(2), 184–204. https://doi.org/10.1108/BIJ-02-2012-0008
Meybodi, M. Z. (2013). The links between lean manufacturing practices and concurrent engineering method of new product development. Benchmarking: An International Journal, 20(3), 362–376. https://doi.org/10.1108/14635771311318135
Omar, R., Zailani, S., Sulaiman, M., & Ramayah, T. (2006). Supplier involvement, customer focus, supply chain technology and manufacturing performance: Findings from a pilot study. 2006 IEEE International Conference on Management of Innovation and Technology, 876–880. https://doi.org/10.1109/ICMIT.2006.262347
Peningkatan Konsumsi Ikan di Kota Depok, S., Barat, J., Sokib, N., Sri Palupi, N., Budi Suharjo, dan, & Kelautan dan Perikanan, K. (2012). Strategi Peningkatan Konsumsi Ikan di Kota Depok, Jawa Barat. MANAJEMEN IKM: Jurnal Manajemen Pengembangan Industri Kecil Menengah, 7(2).
Rajaguru, R., & Matanda, M. J. (2019). Role of compatibility and supply chain process integration in facilitating supply chain capabilities and organizational performance. Supply Chain Management: An International Journal, 24(2), 301–316. https://doi.org/10.1108/SCM-05-2017-0187
Ruggiero, P., & Cupertino, S. (2018). CSR Strategic Approach, Financial Resources and Corporate Social Performance: The Mediating Effect of Innovation. Sustainability, 10(10), 3611. https://doi.org/https://doi.org/10.3390/su10103611
Singhry, H. B. (2015). Effect of Supply Chain Technology, Supply Chain Collaboration and Innovation Capability on Supply Chain Performance of Manufacturing Companies. Journal of Business Studies Quarterly, 7(2), 258–273.
Solimun, M. (2002). Structural Equation Modeling LISREL dan Amos. Malang: Fakultas MIPA Universitas Brawijaya, 3(2).
Song, H., Turson, R., Ganguly, A., & Yu, K. (2017). Evaluating the effects of supply chain quality management on food firms’ performance. International Journal of Operations & Production Management, 37(10), 1541–1562. https://doi.org/10.1108/IJOPM-11-2015-0666
Sugiyono. (2016). Definisi dan Operasionsl Variabel Penelitian. Definisi Dan Operasionsl Variabel Penelitian.
Tatang Ibrahim, R. (2021). Manajemen Mutu Terpadu: Total Quality Management (Yrama Widya).
Teece, D. J. (2010). Alfred Chandler and “capabilities” theories of strategy and management. Industrial and Corporate Change, 19(2), 297–316. https://doi.org/10.1093/icc/dtq008
Vanichchinchai, A., & Igel, B. (2011). The impact of total quality management on supply chain management and firm’s supply performance. International Journal of Production Research, 49(11), 3405–3424. https://doi.org/10.1080/00207543.2010.492805
Wu, F., Yeniyurt, S., Kim, D., & Cavusgil, S. T. (2006). The impact of information technology on supply chain capabilities and firm performance: A resource-based view. Industrial Marketing Management, 35(4), 493–504. https://doi.org/10.1016/j.indmarman.2005.05.003
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2024-12-19
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