IDEAS home Printed from https://ideas.repec.org/a/ers/ijebaa/vixy2021i1p211-224.html
   My bibliography  Save this article

The Impact of Supply Chain Integration and Trust on Supply Chain Performance: Evidence from Indonesia Retail Sector

Author

Listed:
  • J.E. Sutanto
  • Arnold Japutra

Abstract

Purpose: This study is to determine the impact of supply chain integration and trust on supply chain performance. Design/Methodology/Approach: The research was conducted empirically on supply chain activities at Indomaret outlets in Indonesia and as a representative of outlets with a total sample of 145 outlets. Factor analysis and multiple linear regression using the SPSS program with version 25 for data analysis. Findings: The finding of this study reveals that all variables of supply chain integration are supplier integration (SI), customer integration (CI), process integration (PI), and trust (TR), both partially and simultaneously are stated to have a significant effect on supply chain performance (SCP). Practical Implications: Based on the results the suggestion is the company must integrate the internal processes and continue by integrating with external companies, namely supplier integration and customer integration or distributor. Original/value: Find novelty of this study is implementing supply chain collaboration for development in the business retail sector, especially in Indonesia. Secondly, this study shows collaboration as a communication aspect like formal and informal contact.

Suggested Citation

  • J.E. Sutanto & Arnold Japutra, 2021. "The Impact of Supply Chain Integration and Trust on Supply Chain Performance: Evidence from Indonesia Retail Sector," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 211-224.
    • Handle: RePEc:ers:ijebaa:v:ix:y:2021:i:1:p:211-224
    as

    Download full text from publisher

    File URL: https://www.ijeba.com/journal/668/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Faical Boutayeba, 2017. "Estimating the Returns to Education in Algeria," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 5(2), pages 147-153, June.
    2. Cao, Qing & Baker, Jeff & Schniederjans, Dara, 2014. "Bullwhip effect reduction and improved business performance through guanxi: An empirical study," International Journal of Production Economics, Elsevier, vol. 158(C), pages 217-230.
    3. He, Yuanqiong & Keung Lai, Kin & Sun, Hongyi & Chen, Yun, 2014. "The impact of supplier integration on customer integration and new product performance: The mediating role of manufacturing flexibility under trust theory," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 260-270.
    4. Wu, Ing-Long & Chuang, Cheng-Hung & Hsu, Chien-Hua, 2014. "Information sharing and collaborative behaviors in enabling supply chain performance: A social exchange perspective," International Journal of Production Economics, Elsevier, vol. 148(C), pages 122-132.
    5. Oliver Münch, 2015. "First-Time-Right Procurement," Springer Books, in: First-Time-Right Procurement, edition 127, chapter 5, pages 149-160, Springer.
    6. Nicky J. Welton & Howard H. Z. Thom, 2015. "Value of Information," Medical Decision Making, , vol. 35(5), pages 564-566, July.
    7. Seebacher, Gottfried & Winkler, Herwig, 2015. "A capability approach to evaluate supply chain flexibility," International Journal of Production Economics, Elsevier, vol. 167(C), pages 177-186.
    8. Faiçal Boutayeba, 2017. "Estimating the Returns to Education in Algeria," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 5(2), pages 147-153.
    9. Oliver Münch, 2015. "First-Time-Right Procurement," Springer Books, Springer, edition 127, number 978-3-658-08620-6, December.
    10. V. Kumar & Bharath Rajan & Shaphali Gupta & Ilaria Dalla Pozza, 2019. "Customer engagement in service," Journal of the Academy of Marketing Science, Springer, vol. 47(1), pages 138-160, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Obsatar Sinaga & Mohd Haizam Mohd Saudi & Djoko Roespinoedji & Mohd Shahril Ahmad Razimi, 2019. "The Dynamic Nexus of Digital Evolution, Environmental Turbulence and Environmental Performance: A Case of High-tech Industries in the Emerging 4th Industrial Revolution," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 386-393.
    2. Jianhua Yang & Yuying Liu & Yajun Jia, 2022. "Influence of Trust Relationships with Suppliers on Manufacturer Resilience in COVID-19 Era," Sustainability, MDPI, vol. 14(15), pages 1-23, July.
    3. Schoenherr, Tobias & Wagner, Stephan M., 2016. "Supplier involvement in the fuzzy front end of new product development: An investigation of homophily, benevolence and market turbulence," International Journal of Production Economics, Elsevier, vol. 180(C), pages 101-113.
    4. Winifrida Mwanga & Adeoye Crispin John Mbogo, 2023. "Drivers of Weighted Average Cost of Capital in Selected Listed Companies in Tanzania," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(7), pages 1601-1618, July.
    5. Kingsbury, Ian, 2018. "Making sense of low private returns in MENA: A human capital approach," International Journal of Educational Development, Elsevier, vol. 61(C), pages 173-183.
    6. Ting Kong & Taiwen Feng & Baofeng Huo, 2021. "Green supply chain integration and financial performance: A social contagion and information sharing perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2255-2270, July.
    7. Gilseung Ahn & You-Jin Park & Sun Hur, 2017. "Probabilistic Graphical Framework for Estimating Collaboration Levels in Cloud Manufacturing," Sustainability, MDPI, vol. 9(2), pages 1-17, February.
    8. Asmawi Hashim & Norimah Rambeli & Norasibah Abdul Jalil & Normala Zulkifli & Emilda Hashim & Noor Al-Huda Abdul Karim, 2019. "Does Export Led Growth Hypothesis Hold Under World Crisis Recovery Regime in Malaysia?," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(5), pages 9-19, December.
    9. Marta Pérez-Pérez & Canan Kocabasoglu-Hillmer & Ana María Serrano-Bedia & María Concepción López-Fernández, 2019. "Manufacturing and Supply Chain Flexibility: Building an Integrative Conceptual Model Through Systematic Literature Review and Bibliometric Analysis," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(1), pages 1-23, December.
    10. Changchun Liu & Xi Xiang & Li Zheng, 2020. "Value of information sharing in a multiple producers–distributor supply chain," Annals of Operations Research, Springer, vol. 285(1), pages 121-148, February.
    11. Delic, Mia & Eyers, Daniel R., 2020. "The effect of additive manufacturing adoption on supply chain flexibility and performance: An empirical analysis from the automotive industry," International Journal of Production Economics, Elsevier, vol. 228(C).
    12. Gupta, Shaphali & Leszkiewicz, Agata & Kumar, V. & Bijmolt, Tammo & Potapov, Dmitriy, 2020. "Digital Analytics: Modeling for Insights and New Methods," Journal of Interactive Marketing, Elsevier, vol. 51(C), pages 26-43.
    13. Acar, Yavuz & Atadeniz, Sukran Nilvana, 2015. "Comparison of integrated and local planning approaches for the supply network of a globally-dispersed enterprise," International Journal of Production Economics, Elsevier, vol. 167(C), pages 204-219.
    14. Elizabeth Chinomona, 2019. "Examining the Impact of Antecedents of Firm Performance on Companies in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 10(6), pages 30-42.
    15. Vincenzo Varriale & Antonello Cammarano & Francesca Michelino & Mauro Caputo, 2021. "Sustainable Supply Chains with Blockchain, IoT and RFID: A Simulation on Order Management," Sustainability, MDPI, vol. 13(11), pages 1-23, June.
    16. Valeria Costantini & Francesco Crespi & Giovanni Marin & Elena Paglialunga, 2016. "Eco-innovation, sustainable supply chains and environmental performance in European industries," LEM Papers Series 2016/19, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    17. Lee, Alice J. & Ames, Daniel R., 2017. "“I can’t pay more” versus “It’s not worth more”: Divergent effects of constraint and disparagement rationales in negotiations," Organizational Behavior and Human Decision Processes, Elsevier, vol. 141(C), pages 16-28.
    18. Hussain, Hadia & Murtaza, Murtaza & Ajmal, Areeb & Ahmed, Afreen & Khan, Muhammad Ovais Khalid, 2020. "A study on the effects of social media advertisement on consumer’s attitude and customer response," MPRA Paper 104675, University Library of Munich, Germany.
    19. A. G. Fatullayev & Nizami A. Gasilov & Şahin Emrah Amrahov, 2019. "Numerical solution of linear inhomogeneous fuzzy delay differential equations," Fuzzy Optimization and Decision Making, Springer, vol. 18(3), pages 315-326, September.
    20. Cyril Chalendard, 2015. "Use of internal information, external information acquisition and customs underreporting," Working Papers halshs-01179445, HAL.

    More about this item

    Keywords

    Supplier integration; Customer integration; Process integration; Supply chain performance; Retail.;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:ijebaa:v:ix:y:2021:i:1:p:211-224. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ijeba.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.