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Procurement Issues in the Indonesian Maintenance, Repair, and Overhaul (MRO) Industry

Author

Listed:
  • Basri Fahriza

    (Institut Transportasi & Logistik (ITL) Trisakti, Jl. IPN No.2, Jakarta 13410, Indonesia Author-2-Name: Adibah Shuib Author-2-Workplace-Name: Faculty of Computer and Mathematical Sciences, Universiti Teknologi MARA, 40450 Shah Alam, Malaysia Author-3-Name: Wan Mazlina Wan Mohamed Author-3-Workplace-Name: School of Mechanical Engineering, College of Engineering, Universiti Teknologi MARA, 40450 Shah Alam, Malaysia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

"Objective - This study addresses the escalating challenges in aircraft component procurement within Indonesia's aviation industry. Methodology/Technique - To achieve this objective, an in-depth literature review was conducted, exploring diverse facets such as geographical challenges, parts availability intricacies, supplier preferences, quality assurance, time and pricing dynamics, customs clearance challenges, and cost management strategies within the realm of Indonesian Aviation Maintenance, Repair, and Overhaul (MRO). The research methodologically involved 30 participants from various MRO companies affiliated with the Indonesia Aircraft Maintenance Services Association (IAMSA). Subsequently, PLS-SEM analysis was employed to establish the robust reliability and validity of the study, revealing significant relationships that underscored the crucial impact of lead time on Preferred Suppliers and Procurement Process Performance. Finding - The Analysis revealed significant relationships, emphasizing the crucial impact of lead time on Preferred Suppliers and Procurement Process Performance within the Indonesian Aviation MRO sector. Novelty - This study provides nuanced insights for refining procurement strategies and enhancing operational efficiency within the dynamic Indonesian Aviation MRO sector, contributing to the ongoing discourse and offering a holistic understanding of key factors influencing the procurement landscape. Type of Paper - Empirical"

Suggested Citation

  • Basri Fahriza, 2024. "Procurement Issues in the Indonesian Maintenance, Repair, and Overhaul (MRO) Industry," GATR Journals gjbssr645, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:gjbssr645
    DOI: https://doi.org/10.35609/gjbssr.2024.12.1(4)
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    More about this item

    Keywords

    Aircraft Maintenance; Repair; and Overhaul (MRO); Indonesia; Procurement;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts

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