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INTERNAL SUPPLY CHAIN INTEGRATION AND OPERATIONAL PERFORMANCE OF INDONESIAN FASHION INDUSTRY FIRMS
Corresponding Author(s) : Kittisak Jermsittiparsert
Humanities & Social Sciences Reviews,
Vol. 7 No. 2 (2019): March
Abstract
Purpose: The objective of the current study is to inspect how risk affects the success of supply chain integration, following the SCI concept and implementing integration framework, together with its relational view. The prime objective of the current study is to investigate the relationship between supply chain integration, supply chain risk practices and supply chain performance
Methodology: Integrating operations of supply chain with suppliers and customers, allow companies to streamline and improve data exchange and information that could result in the betterment of material and product flows within the SC.
Results: We particularly explore how risk at country level in the form of rule of law influences the operational performance of SCI through its innovativeness and cost. Furthermore, we aim to explore how risk management practices of SC can be connected under different scenarios of risk and uncertainty. The current study has used SEM-PLS as a statistical tool to answer the research questions raised in this study and research objectives envisaged in the current study. The findings of the study have provided support to the theoretical foundation and proposed hypothesis of the current study. Current study will be helpful for policymakers and practitioners in understanding the issues related to supply chain risk, supply chain integration and supply chain performance. In the author's knowledge this is among very few pioneering studies on this issue.
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- Alhnaity, H., A. Almuala and A.K. Elmasri, 2018. The role of government intervention as a moderating variable in the relationship between entrepreneurial networks and business owners’ performance in jordan. Asian Journal of Economics and Empirical Research, 5(1): 93-98. DOI: https://doi.org/10.20448/journal.501.2018.51.93.98
- Al Meqdadi, F., 2018. The effects of using an interactive software (gsp) on uae students' attitudes towards geometry. Humanities, 3(1): 22-28. DOI: https://doi.org/10.20448/801.31.22.28
- Altunkaya, H. and A. Ates, 2018. Sources of reading anxiety among learners of turkish as a foreign language. Asian Journal of Education and Training, 4(3): 161-169. DOI: https://doi.org/10.20448/journal.522.2018.43.161.169
- Asif, M., F. Asghar, A. Younis, A. Mahmood and L.Z. Wang, 2018. The role of social entrepreneurship in pakistan and its impact on the economy. International Journal of Business, Economics and Management, 5(5): 117-127. DOI: https://doi.org/10.18488/journal.62.2018.55.117.127
- Audu, T.A., 2018. Effects of teaching methods on basic science achievement and spatial ability of basic nine boys and girls in kogi state, nigeria. Humanities and Social Sciences Letters, 6(4): 149-155. DOI: https://doi.org/10.18488/journal.73.2018.64.149.155
- Bachev, H., 2018. Management and agrarian sustainability-impact of institutions in bulgaria. International Journal of Management and Sustainability, 7(2): 113-142. DOI: https://doi.org/10.18488/journal.11.2018.72.113.142
- Basheer, M., M. Siam, A. Awn and S. Hassan, 2019. Exploring the role of tqm and supply chain practices for firm supply performance in the presence of information technology capabilities and supply chain technology adoption: A case of textile firms in pakistan. Uncertain Supply Chain Management, 7(2): 275-288. DOI: https://doi.org/10.5267/j.uscm.2018.9.001
- Belderbos, R., V. Gilsing, B. Lokshin, M. Carree and J.F. Sastre, 2018. The antecedents of new r&d collaborations with different partner types: On the dynamics of past r&d collaboration and innovative performance. Long Range Planning, 51(2): 285-302. DOI: https://doi.org/10.1016/j.lrp.2017.10.002
- Cai, S. and M. Jun, 2018. A qualitative study of the internalization of iso 9000 standards: The linkages among firms' motivations, internalization processes, and performance. International Journal of Production Economics, 196: 248-260. DOI: https://doi.org/10.1016/j.ijpe.2017.12.001
- Cao, M. and Q. Zhang, 2011. Supply chain collaboration: Impact on collaborative advantage and firm performance. Journal of operations management, 29(3): 163-180. DOI: https://doi.org/10.1016/j.jom.2010.12.008
- Fernández, J.T., J. de Burgos Jiménez and J.J.C. Lorente, 2018. Effects of interaction between supply chain integration and high-performance human resources practices on performance. CátedraFundación Ramón Areces de DistribuciónComercial.
- Flynn, B.B., B. Huo and X. Zhao, 2010. The impact of supply chain integration on performance: A contingency and configuration approach. Journal of operations management, 28(1): 58-71. DOI: https://doi.org/10.1016/j.jom.2009.06.001
- Gopal, P.V., R. Subashini and G. Velmurugan, 2019. Effect of supply chain management practices on organizational performance: An empirical approach. In: Emerging applications in supply chains for sustainable business development. IGI Global: pp: 142-159. DOI: https://doi.org/10.4018/978-1-5225-5424-0.ch009
- Graham, S., 2018. Antecedents to environmental supply chain strategies: The role of internal integration and environmental learning. International Journal of Production Economics, 197: 283-296. DOI: https://doi.org/10.1016/j.ijpe.2018.01.005
- Hafeez, M.H., M.F. Basheer, M. Rafique and S.H. Siddiqui, 2018. Exploring the links between tqm practices, business innovativeness and firm performance: An emerging market perspective. Pakistan Journal of Social Sciences (PJSS), 38(2).
- Huo, B., Y. Ye, X. Zhao and K. Zhu, 2019. Supply chain quality integration: A taxonomy perspective. International Journal of Production Economics, 207: 236-246. DOI: https://doi.org/10.1016/j.ijpe.2016.05.004
- Kim, D., R.-J.B. Jean and R.R. Sinkovics, 2018. Drivers of virtual inter firm integration and its impact on performance in international customer–supplier relationships. Management international review, 58(3): 495-522. DOI: https://doi.org/10.1007/s11575-018-0344-4
- Kou, T.-C., C.-T. Chiang and A.-H. Chiang, 2018. Effects of it-based supply chains on new product development activities and the performance of computer and communication electronics manufacturers. Journal of Business & Industrial Marketing, 33(7): 869-882. DOI: https://doi.org/10.1108/JBIM-11-2016-0269
- Kwak, D.-W., Y.-J. Seo and R. Mason, 2018. Investigating the relationship between supply chain innovation, risk management capabilities and competitive advantage in global supply chains. International Journal of Operations & Production Management, 38(1): 2-21. DOI: https://doi.org/10.1108/IJOPM-06-2015-0390
- Liu, H., S. Wei, W. Ke, K.K. Wei and Z. Hua, 2016. The configuration between supply chain integration and information technology competency: A resource orchestration perspective. Journal of Operations Management, 44: 13-29. DOI: https://doi.org/10.1016/j.jom.2016.03.009
- Lo, S.M., S. Zhang, Z. Wang and X. Zhao, 2018. The impact of relationship quality and supplier development on green supply chain integration: A mediation and moderation analysis. Journal of Cleaner Production, 202: 524-535. DOI: https://doi.org/10.1016/j.jclepro.2018.08.175
- Michalski, M., J.-L. Montes-Botella and R. Narasimhan, 2018. The impact of asymmetry on performance in different collaboration and integration environments in supply chain management. Supply Chain Management: An International Journal, 23(1): 33-49. DOI: https://doi.org/10.1108/SCM-09-2017-0283
- Mohamed, E. and A. Hassan, 2019. How does complexity affect the relationship between supply chain integration and firm performance?: A conceptual framework. International Journal of Service Science, Management, Engineering, and Technology (IJSSMET), 10(2): 22-37. DOI: https://doi.org/10.4018/IJSSMET.2019040102
- Moreno-Luzon, M.D., J.P. Escorcia-Caballero and O. Chams-Anturi, 2019. The integration of the supply chain as a dynamic capability for sustainability: The case of an innovative organic company. In: Knowledge, innovation and sustainable development in organizations. Springer: pp: 97-111. DOI: https://doi.org/10.1007/978-3-319-74881-8_7
- Ngai, E.W., D.C. Chau and T. Chan, 2011. Information technology, operational, and management competencies for supply chain agility: Findings from case studies. The Journal of Strategic Information Systems, 20(3): 232-249. DOI: https://doi.org/10.1016/j.jsis.2010.11.002
- Paulraj, A., A.A. Lado and I.J. Chen, 2008. Inter-organizational communication as a relational competency: Antecedents and performance outcomes in collaborative buyer–supplier relationships. Journal of operations management, 26(1): 45-64. DOI: https://doi.org/10.1016/j.jom.2007.04.001
- Prajogo, D., A. Oke and J. Olhager, 2016. Supply chain processes: Linking supply logistics integration, supply performance, lean processes and competitive performance. International Journal of Operations & Production Management, 36(2): 220-238. DOI: https://doi.org/10.1108/IJOPM-03-2014-0129
- Prajogo, D. and J. Olhager, 2012. Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration. International Journal of Production Economics, 135(1): 514-522. DOI: https://doi.org/10.1016/j.ijpe.2011.09.001
- Ralston, P.M., J. Blackhurst, D.E. Cantor and M.R. Crum, 2015. A structure–conduct–performance perspective of how strategic supply chain integration affects firm performance. Journal of Supply Chain Management, 51(2): 47-64. DOI: https://doi.org/10.1111/jscm.12064
- Ul-Hameed, W., H. Mohammad, H. Shahar, A. Aljumah and S. Azizan, 2019. The effect of integration between audit and leadership on supply chain performance: Evidence from uk based supply chain companies. Uncertain Supply Chain Management, 7(2): 311-328. DOI: https://doi.org/10.5267/j.uscm.2018.8.001
- Uygun, Ö. and A. Dede, 2016. Performance evaluation of green supply chain management using integrated fuzzy multi-criteria decision making techniques. Computers & Industrial Engineering, 102: 502-511. DOI: https://doi.org/10.1016/j.cie.2016.02.020
- Villena, V.H., E. Revilla and T.Y. Choi, 2011. The dark side of buyer–supplier relationships: A social capital perspective. Journal of Operations Management, 29(6): 561-576. DOI: https://doi.org/10.1016/j.jom.2010.09.001
- Wiengarten, F., P. Humphreys, C. Gimenez and R. McIvor, 2016. Risk, risk management practices, and the success of supply chain integration. International Journal of Production Economics, 171: 361-370. DOI: https://doi.org/10.1016/j.ijpe.2015.03.020
- Wong, C.Y., S. Boon-Itt and C.W. Wong, 2011. The contingency effects of environmental uncertainty on the relationship between supply chain integration and operational performance. Journal of Operations Management, 29(6): 604-615. DOI: https://doi.org/10.1016/j.jom.2011.01.003
- Wuttke, D.A., C. Blome and M. Henke, 2013. Focusing the financial flow of supply chains: An empirical investigation of financial supply chain management. International journal of production economics, 145(2): 773-789. DOI: https://doi.org/10.1016/j.ijpe.2013.05.031
- Xiao, C., M. Wilhelm, T. van der Vaart and D.P. van Donk, 2019. Inside the buying firm: Exploring responses to paradoxical tensions in sustainable supply chain management. Journal of Supply Chain Management, 55(1): 3-20. DOI: https://doi.org/10.1111/jscm.12170
- Yu, W., M.A. Jacobs, W.D. Salisbury and H. Enns, 2013. The effects of supply chain integration on customer satisfaction and financial performance: An organizational learning perspective. International Journal of Production Economics, 146(1): 346-358. DOI: https://doi.org/10.1016/j.ijpe.2013.07.023
- Yu, Y., M. Zhang and B. Huo, 2017. The impact of supply chain quality integration on green supply chain management and environmental performance. Total Quality Management & Business Excellence: 1-16.
- Zinn, W., T.J. Goldsby and M.C. Cooper, 2018. Researching the opportunities and challenges for women in the supply chain. Journal of Business Logistics, 39(2): 84-86. DOI: https://doi.org/10.1111/jbl.12186
References
Alhnaity, H., A. Almuala and A.K. Elmasri, 2018. The role of government intervention as a moderating variable in the relationship between entrepreneurial networks and business owners’ performance in jordan. Asian Journal of Economics and Empirical Research, 5(1): 93-98. DOI: https://doi.org/10.20448/journal.501.2018.51.93.98
Al Meqdadi, F., 2018. The effects of using an interactive software (gsp) on uae students' attitudes towards geometry. Humanities, 3(1): 22-28. DOI: https://doi.org/10.20448/801.31.22.28
Altunkaya, H. and A. Ates, 2018. Sources of reading anxiety among learners of turkish as a foreign language. Asian Journal of Education and Training, 4(3): 161-169. DOI: https://doi.org/10.20448/journal.522.2018.43.161.169
Asif, M., F. Asghar, A. Younis, A. Mahmood and L.Z. Wang, 2018. The role of social entrepreneurship in pakistan and its impact on the economy. International Journal of Business, Economics and Management, 5(5): 117-127. DOI: https://doi.org/10.18488/journal.62.2018.55.117.127
Audu, T.A., 2018. Effects of teaching methods on basic science achievement and spatial ability of basic nine boys and girls in kogi state, nigeria. Humanities and Social Sciences Letters, 6(4): 149-155. DOI: https://doi.org/10.18488/journal.73.2018.64.149.155
Bachev, H., 2018. Management and agrarian sustainability-impact of institutions in bulgaria. International Journal of Management and Sustainability, 7(2): 113-142. DOI: https://doi.org/10.18488/journal.11.2018.72.113.142
Basheer, M., M. Siam, A. Awn and S. Hassan, 2019. Exploring the role of tqm and supply chain practices for firm supply performance in the presence of information technology capabilities and supply chain technology adoption: A case of textile firms in pakistan. Uncertain Supply Chain Management, 7(2): 275-288. DOI: https://doi.org/10.5267/j.uscm.2018.9.001
Belderbos, R., V. Gilsing, B. Lokshin, M. Carree and J.F. Sastre, 2018. The antecedents of new r&d collaborations with different partner types: On the dynamics of past r&d collaboration and innovative performance. Long Range Planning, 51(2): 285-302. DOI: https://doi.org/10.1016/j.lrp.2017.10.002
Cai, S. and M. Jun, 2018. A qualitative study of the internalization of iso 9000 standards: The linkages among firms' motivations, internalization processes, and performance. International Journal of Production Economics, 196: 248-260. DOI: https://doi.org/10.1016/j.ijpe.2017.12.001
Cao, M. and Q. Zhang, 2011. Supply chain collaboration: Impact on collaborative advantage and firm performance. Journal of operations management, 29(3): 163-180. DOI: https://doi.org/10.1016/j.jom.2010.12.008
Fernández, J.T., J. de Burgos Jiménez and J.J.C. Lorente, 2018. Effects of interaction between supply chain integration and high-performance human resources practices on performance. CátedraFundación Ramón Areces de DistribuciónComercial.
Flynn, B.B., B. Huo and X. Zhao, 2010. The impact of supply chain integration on performance: A contingency and configuration approach. Journal of operations management, 28(1): 58-71. DOI: https://doi.org/10.1016/j.jom.2009.06.001
Gopal, P.V., R. Subashini and G. Velmurugan, 2019. Effect of supply chain management practices on organizational performance: An empirical approach. In: Emerging applications in supply chains for sustainable business development. IGI Global: pp: 142-159. DOI: https://doi.org/10.4018/978-1-5225-5424-0.ch009
Graham, S., 2018. Antecedents to environmental supply chain strategies: The role of internal integration and environmental learning. International Journal of Production Economics, 197: 283-296. DOI: https://doi.org/10.1016/j.ijpe.2018.01.005
Hafeez, M.H., M.F. Basheer, M. Rafique and S.H. Siddiqui, 2018. Exploring the links between tqm practices, business innovativeness and firm performance: An emerging market perspective. Pakistan Journal of Social Sciences (PJSS), 38(2).
Huo, B., Y. Ye, X. Zhao and K. Zhu, 2019. Supply chain quality integration: A taxonomy perspective. International Journal of Production Economics, 207: 236-246. DOI: https://doi.org/10.1016/j.ijpe.2016.05.004
Kim, D., R.-J.B. Jean and R.R. Sinkovics, 2018. Drivers of virtual inter firm integration and its impact on performance in international customer–supplier relationships. Management international review, 58(3): 495-522. DOI: https://doi.org/10.1007/s11575-018-0344-4
Kou, T.-C., C.-T. Chiang and A.-H. Chiang, 2018. Effects of it-based supply chains on new product development activities and the performance of computer and communication electronics manufacturers. Journal of Business & Industrial Marketing, 33(7): 869-882. DOI: https://doi.org/10.1108/JBIM-11-2016-0269
Kwak, D.-W., Y.-J. Seo and R. Mason, 2018. Investigating the relationship between supply chain innovation, risk management capabilities and competitive advantage in global supply chains. International Journal of Operations & Production Management, 38(1): 2-21. DOI: https://doi.org/10.1108/IJOPM-06-2015-0390
Liu, H., S. Wei, W. Ke, K.K. Wei and Z. Hua, 2016. The configuration between supply chain integration and information technology competency: A resource orchestration perspective. Journal of Operations Management, 44: 13-29. DOI: https://doi.org/10.1016/j.jom.2016.03.009
Lo, S.M., S. Zhang, Z. Wang and X. Zhao, 2018. The impact of relationship quality and supplier development on green supply chain integration: A mediation and moderation analysis. Journal of Cleaner Production, 202: 524-535. DOI: https://doi.org/10.1016/j.jclepro.2018.08.175
Michalski, M., J.-L. Montes-Botella and R. Narasimhan, 2018. The impact of asymmetry on performance in different collaboration and integration environments in supply chain management. Supply Chain Management: An International Journal, 23(1): 33-49. DOI: https://doi.org/10.1108/SCM-09-2017-0283
Mohamed, E. and A. Hassan, 2019. How does complexity affect the relationship between supply chain integration and firm performance?: A conceptual framework. International Journal of Service Science, Management, Engineering, and Technology (IJSSMET), 10(2): 22-37. DOI: https://doi.org/10.4018/IJSSMET.2019040102
Moreno-Luzon, M.D., J.P. Escorcia-Caballero and O. Chams-Anturi, 2019. The integration of the supply chain as a dynamic capability for sustainability: The case of an innovative organic company. In: Knowledge, innovation and sustainable development in organizations. Springer: pp: 97-111. DOI: https://doi.org/10.1007/978-3-319-74881-8_7
Ngai, E.W., D.C. Chau and T. Chan, 2011. Information technology, operational, and management competencies for supply chain agility: Findings from case studies. The Journal of Strategic Information Systems, 20(3): 232-249. DOI: https://doi.org/10.1016/j.jsis.2010.11.002
Paulraj, A., A.A. Lado and I.J. Chen, 2008. Inter-organizational communication as a relational competency: Antecedents and performance outcomes in collaborative buyer–supplier relationships. Journal of operations management, 26(1): 45-64. DOI: https://doi.org/10.1016/j.jom.2007.04.001
Prajogo, D., A. Oke and J. Olhager, 2016. Supply chain processes: Linking supply logistics integration, supply performance, lean processes and competitive performance. International Journal of Operations & Production Management, 36(2): 220-238. DOI: https://doi.org/10.1108/IJOPM-03-2014-0129
Prajogo, D. and J. Olhager, 2012. Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration. International Journal of Production Economics, 135(1): 514-522. DOI: https://doi.org/10.1016/j.ijpe.2011.09.001
Ralston, P.M., J. Blackhurst, D.E. Cantor and M.R. Crum, 2015. A structure–conduct–performance perspective of how strategic supply chain integration affects firm performance. Journal of Supply Chain Management, 51(2): 47-64. DOI: https://doi.org/10.1111/jscm.12064
Ul-Hameed, W., H. Mohammad, H. Shahar, A. Aljumah and S. Azizan, 2019. The effect of integration between audit and leadership on supply chain performance: Evidence from uk based supply chain companies. Uncertain Supply Chain Management, 7(2): 311-328. DOI: https://doi.org/10.5267/j.uscm.2018.8.001
Uygun, Ö. and A. Dede, 2016. Performance evaluation of green supply chain management using integrated fuzzy multi-criteria decision making techniques. Computers & Industrial Engineering, 102: 502-511. DOI: https://doi.org/10.1016/j.cie.2016.02.020
Villena, V.H., E. Revilla and T.Y. Choi, 2011. The dark side of buyer–supplier relationships: A social capital perspective. Journal of Operations Management, 29(6): 561-576. DOI: https://doi.org/10.1016/j.jom.2010.09.001
Wiengarten, F., P. Humphreys, C. Gimenez and R. McIvor, 2016. Risk, risk management practices, and the success of supply chain integration. International Journal of Production Economics, 171: 361-370. DOI: https://doi.org/10.1016/j.ijpe.2015.03.020
Wong, C.Y., S. Boon-Itt and C.W. Wong, 2011. The contingency effects of environmental uncertainty on the relationship between supply chain integration and operational performance. Journal of Operations Management, 29(6): 604-615. DOI: https://doi.org/10.1016/j.jom.2011.01.003
Wuttke, D.A., C. Blome and M. Henke, 2013. Focusing the financial flow of supply chains: An empirical investigation of financial supply chain management. International journal of production economics, 145(2): 773-789. DOI: https://doi.org/10.1016/j.ijpe.2013.05.031
Xiao, C., M. Wilhelm, T. van der Vaart and D.P. van Donk, 2019. Inside the buying firm: Exploring responses to paradoxical tensions in sustainable supply chain management. Journal of Supply Chain Management, 55(1): 3-20. DOI: https://doi.org/10.1111/jscm.12170
Yu, W., M.A. Jacobs, W.D. Salisbury and H. Enns, 2013. The effects of supply chain integration on customer satisfaction and financial performance: An organizational learning perspective. International Journal of Production Economics, 146(1): 346-358. DOI: https://doi.org/10.1016/j.ijpe.2013.07.023
Yu, Y., M. Zhang and B. Huo, 2017. The impact of supply chain quality integration on green supply chain management and environmental performance. Total Quality Management & Business Excellence: 1-16.
Zinn, W., T.J. Goldsby and M.C. Cooper, 2018. Researching the opportunities and challenges for women in the supply chain. Journal of Business Logistics, 39(2): 84-86. DOI: https://doi.org/10.1111/jbl.12186