IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i9p4669-d541202.html
   My bibliography  Save this article

Supply Chain Integration Enables Resilience, Flexibility, and Innovation to Improve Business Performance in COVID-19 Era

Author

Listed:
  • Hotlan Siagian

    (Department of Master Management, Faculty Business and Economics, Petra Christian University, Jl. Siwlankerto 121-131, Surabaya 60236, Indonesia)

  • Zeplin Jiwa Husada Tarigan

    (Department of Master Management, Faculty Business and Economics, Petra Christian University, Jl. Siwlankerto 121-131, Surabaya 60236, Indonesia)

  • Ferry Jie

    (School of Business and Law, Edith Cowan University, Joondalup 6027, Australia)

Abstract

The COVID-19 pandemic has brought about a sudden change from normal conditions to disruption conditions, and industrial sectors have experienced eroded growth. In particular, the manufacturing industry experienced a slowdown due to the sudden disruption in supply and demand. This situation stimulates the manufacturing industry to recover from this current challenging disruption. This study investigates the impact of supply chain integration on business performance through supply chain resilience, supply chain flexibility, and innovation system in Indonesia’s manufacturing companies. Data collection has obtained as many as 470 questionnaires considered valid for further analysis. Data analysis used the partial least square (PLS) technique using smartPLS software version 3.0. The results show that supply chain integration affects innovation system, supply chain flexibility, and supply chain resilience because of its ability to share complete product information and share production planning. Innovation systems and supply chain flexibility enhance supply chain resilience through the ability to deal with sudden changes in customer demand and production problems. Supply chain integration improves business performance through innovation, supply chain flexibility, and supply chain resilience in the COVID-19 era. This research could be the best practice for managers in restoring manufacturing performance quickly. This study also contributes to the current research in supply chain management.

Suggested Citation

  • Hotlan Siagian & Zeplin Jiwa Husada Tarigan & Ferry Jie, 2021. "Supply Chain Integration Enables Resilience, Flexibility, and Innovation to Improve Business Performance in COVID-19 Era," Sustainability, MDPI, vol. 13(9), pages 1-19, April.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:9:p:4669-:d:541202
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/9/4669/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/9/4669/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jin, Yan & Vonderembse, Mark & Ragu-Nathan, T.S. & Smith, Joy Turnheim, 2014. "Exploring relationships among IT-enabled sharing capability, supply chain flexibility, and competitive performance," International Journal of Production Economics, Elsevier, vol. 153(C), pages 24-34.
    2. Qiang Xu & Qianqian Hu & Tachia Chin & Chen Chen & Yi Shi & Jianxin Xu, 2019. "How Supply Chain Integration Affects Innovation in a Digital Age: Moderating Effects of Sustainable Policy," Sustainability, MDPI, vol. 11(19), pages 1-17, October.
    3. Xinmin Liu & Kangkang Lin & Lei Wang & Lili Ding, 2020. "Pricing Decisions for a Sustainable Supply Chain in the Presence of Potential Strategic Customers," Sustainability, MDPI, vol. 12(4), pages 1-17, February.
    4. Munir, Manal & Jajja, Muhammad Shakeel Sadiq & Chatha, Kamran Ali & Farooq, Sami, 2020. "Supply chain risk management and operational performance: The enabling role of supply chain integration," International Journal of Production Economics, Elsevier, vol. 227(C).
    5. Hongyun Tian & Samuel Kofi Otchere & Cephas P. K. Coffie & Isaac Adjei Mensah & Raphael Kwame Baku, 2021. "Supply Chain Integration, Interfirm Value Co-Creation and Firm Performance Nexus in Ghanaian SMEs: Mediating Roles of Stakeholder Pressure and Innovation Capability," Sustainability, MDPI, vol. 13(4), pages 1-18, February.
    6. Zeplin Jiwa Husada Tarigan & Hotlan Siagian & Ferry Jie, 2020. "The Role of Top Management Commitment to Enhancing the Competitive Advantage Through ERP Integration and Purchasing Strategy," International Journal of Enterprise Information Systems (IJEIS), IGI Global Scientific Publishing, vol. 16(1), pages 53-68, January.
    7. Liu, Chiung-Lin & Shang, Kuo-Chung & Lirn, Taih-Cherng & Lai, Kee-Hung & Lun, Y.H. Venus, 2018. "Supply chain resilience, firm performance, and management policies in the liner shipping industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 110(C), pages 202-219.
    8. 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.
    9. Nchanji, Eileen Bogweh & Lutomia, Cosmas Kweyu & Chirwa, Rowland & Templer, Noel & Rubyogo, Jean Claude & Onyango, Patricia, 2021. "Immediate impacts of COVID-19 pandemic on bean value chain in selected countries in sub-Saharan Africa," Agricultural Systems, Elsevier, vol. 188(C).
    10. Zhao, Xiaofei & Wang, Ping & Pal, Raktim, 2021. "The effects of agro-food supply chain integration on product quality and financial performance: Evidence from Chinese agro-food processing business," International Journal of Production Economics, Elsevier, vol. 231(C).
    11. Asad Kamal & Rai Waqas Azfar & Bashir Salah & Waqas Saleem & Muhammad Abas & Razaullah Khan & Catalin I. Pruncu, 2021. "Quantitative Analysis of Sustainable Use of Construction Materials for Supply Chain Integration and Construction Industry Performance through Structural Equation Modeling (SEM)," Sustainability, MDPI, vol. 13(2), pages 1-15, January.
    12. Guiyang Zhu & Mabel C. Chou & Christina W. Tsai, 2020. "Lessons Learned from the COVID-19 Pandemic Exposing the Shortcomings of Current Supply Chain Operations: A Long-Term Prescriptive Offering," Sustainability, MDPI, vol. 12(14), pages 1-19, July.
    13. Alfalla-Luque, Rafaela & Marin-Garcia, Juan A. & Medina-Lopez, Carmen, 2015. "An analysis of the direct and mediated effects of employee commitment and supply chain integration on organisational performance," International Journal of Production Economics, Elsevier, vol. 162(C), pages 242-257.
    14. Lii, Peirchyi & Kuo, Fang-I, 2016. "Innovation-oriented supply chain integration for combined competitiveness and firm performance," International Journal of Production Economics, Elsevier, vol. 174(C), pages 142-155.
    15. Wong, Wai Peng & Sinnandavar, Chandra Mohan & Soh, Keng-Lin, 2021. "The relationship between supply environment, supply chain integration and operational performance: The role of business process in curbing opportunistic behaviour," International Journal of Production Economics, Elsevier, vol. 232(C).
    16. Nina Shin & Sangwook Park, 2019. "Evidence-Based Resilience Management for Supply Chain Sustainability: An Interpretive Structural Modelling Approach," Sustainability, MDPI, vol. 11(2), pages 1-23, January.
    17. Aneta Oniszczuk-Jastrząbek & Ernest Czermański & Giuseppe T. Cirella, 2020. "Sustainable Supply Chain of Enterprises: Value Analysis," Sustainability, MDPI, vol. 12(1), pages 1-15, January.
    18. Chowdhury, Md Maruf H. & Quaddus, Mohammed, 2017. "Supply chain resilience: Conceptualization and scale development using dynamic capability theory," International Journal of Production Economics, Elsevier, vol. 188(C), pages 185-204.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Flavian Omungu & Dr. Stanley Kavale, 2025. "Dynamic Capabilities and Performance of Telecommunication Companies in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(2), pages 134-149, February.
    2. Muhammad Noman Shafique & Ammar Rashid & Sook Fern Yeo & Umar Adeel, 2023. "Transforming Supply Chains: Powering Circular Economy with Analytics, Integration and Flexibility Using Dual Theory and Deep Learning with PLS-SEM-ANN Analysis," Sustainability, MDPI, vol. 15(15), pages 1-23, August.
    3. Tianjiao Wang & Abdullah Al Mamun & Mohammad Masukujjaman & Qing Yang, 2025. "Synergy of blockchain-enabled supply chains, resilience, and sustainability performance in Chinese logistic firms," Operations Management Research, Springer, vol. 18(3), pages 1067-1087, September.
    4. Muhammad Nur Hamizan Mohd Zaidin & Nornazira Suhairom & Mohamad Abdillah Royo, 2025. "Exploring Innovation and Sustainability in Family Business Marketing Strategies: Insights and Implications," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(14), pages 298-309, February.
    5. Yanmin Jiang & Rui-Na Fan, 2022. "Capacity Investment and Process Efficiency at Flexible Firms," Mathematics, MDPI, vol. 10(10), pages 1-17, May.
    6. Marta Cudzilo & Adam Kolinski, 2022. "Digitalization Model Of Informationand Documents Flows In Goods Movement Processes In Supply Chains - Determinants Of Implementation And Measurement Efficiency," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 22, pages 91-102.
    7. Abdullah Kaid Al-Swidi & Mohammed A Al-Hakimi & Hussam Al Halbusi & Jaithen Abdullah Al Harbi & Hamood Mohammed Al-Hattami, 2024. "Does blockchain technology matter for supply chain resilience in dynamic environments? The role of supply chain integration," PLOS ONE, Public Library of Science, vol. 19(1), pages 1-22, January.
    8. Junaid, Muhammad & Zhang, Qingyu & Cao, Mei & Luqman, Adeel, 2023. "Nexus between technology enabled supply chain dynamic capabilities, integration, resilience, and sustainable performance: An empirical examination of healthcare organizations," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    9. Arsalan Zahid Piprani & Noor Ismawati Jaafar & Suhana Mohezar Ali & Muhammad Shujaat Mubarik & Muhammad Shahbaz, 2022. "Multi-dimensional supply chain flexibility and supply chain resilience: the role of supply chain risks exposure," Operations Management Research, Springer, vol. 15(1), pages 307-325, June.
    10. Sara Alonso-Muñoz & Rocío González-Sánchez & Cristina Siligardi & Fernando E. García-Muiña, 2021. "New Circular Networks in Resilient Supply Chains: An External Capital Perspective," Sustainability, MDPI, vol. 13(11), pages 1-18, May.
    11. Katarzyna Grzybowska & Agnieszka A. Tubis, 2022. "Supply Chain Resilience in Reality VUCA—An International Delphi Study," Sustainability, MDPI, vol. 14(17), pages 1-13, August.
    12. Tae-Hwan Yoon & Saerom Wang, 2023. "How Important Is Stakeholder Collaboration in the MICE Industry: Antecedents and Outcomes of Supply Chain Integration," Sustainability, MDPI, vol. 15(20), pages 1-19, October.
    13. Hendrik Sitompul & Muhammad Saifi & Benny Hutahayan & Sunarti, 2024. "Use of Renewable Energy to Enhance Firm Performance: A Systematic Review," Sustainability, MDPI, vol. 16(21), pages 1-17, October.
    14. Safinaz H. Abourokbah & Reem M. Mashat & Mohammad Asif Salam, 2023. "Role of Absorptive Capacity, Digital Capability, Agility, and Resilience in Supply Chain Innovation Performance," Sustainability, MDPI, vol. 15(4), pages 1-25, February.
    15. Itiri Idam Okpara & Patrick Chigozie Moneme & Ogbonnaya Abraham Onuaja & Kingsley Enujiofor Ikegbunam, 2024. "The Significance of Big Data Analytics in the Procurement Process and Supply Chain Management in the Nigerian Manufacturing Industry," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(10), pages 2850-2872, October.
    16. Arpit Singh & Ashish Dwivedi & Dindayal Agrawal & Anurag Chauhan, 2024. "A framework to model the performance indicators of resilient construction supply chain: An effort toward attaining sustainability and circular practices," Business Strategy and the Environment, Wiley Blackwell, vol. 33(3), pages 1688-1720, March.
    17. Ajay Kumar Pandey & Yash Daultani & Saurabh Pratap & Andrew W. H. Ip & Fuli Zhou, 2025. "Analyzing Industry 4.0 Adoption Enablers for Supply Chain Flexibility: Impacts on Resilience and Sustainability," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 26(1), pages 1-24, March.
    18. Zhang, Ziyi, 2025. "E-commerce logistics performance and resilience: The influence of inter-organizational trust and organizational flexibility," Technology in Society, Elsevier, vol. 81(C).
    19. 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.
    20. Abdul Basit & Laijun Wang & Samera Nazir & Saqib Mehmood & Iftikhar Hussain, 2023. "Managing the COVID-19 Pandemic: Enhancing Sustainable Supply Chain Performance through Management Innovation, Information Processing Capability, Business Model Innovation and Knowledge Management Capa," Sustainability, MDPI, vol. 15(18), pages 1-23, September.
    21. Summer K. Mohamed & Sandra Haddad & Mahmoud Barakat & Bojan Rosi, 2023. "Blockchain Technology Adoption for Improved Environmental Supply Chain Performance: The Mediation Effect of Supply Chain Resilience, Customer Integration, and Green Customer Information Sharing," Sustainability, MDPI, vol. 15(10), pages 1-20, May.
    22. Li Cui & Hao Wu & Lin Wu & Ajay Kumar & Kim Hua Tan, 2023. "Investigating the relationship between digital technologies, supply chain integration and firm resilience in the context of COVID-19," Annals of Operations Research, Springer, vol. 327(2), pages 825-853, August.

    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. Li, Siyu & Huo, Baofeng & Han, Zhaojun, 2022. "A literature review towards theories and conceptual models of empirical studies on supply chain integration and performance," International Journal of Production Economics, Elsevier, vol. 250(C).
    2. Lee, Neil Chueh-An, 2021. "Reconciling integration and reconfiguration management approaches in the supply chain," International Journal of Production Economics, Elsevier, vol. 242(C).
    3. Wang, Qianwen & Liu, Xu & Hu, Miao & Huo, Baofeng, 2024. "A reductionistic or holistic approach? The impacts of fit patterns of supplier and customer integration on company and supply chain performance," International Journal of Production Economics, Elsevier, vol. 273(C).
    4. Sungki Kim & Sanggyun Choi & Chanho Kim, 2021. "The Framework for Measuring Port Resilience in Korean Port Case," Sustainability, MDPI, vol. 13(21), pages 1-20, October.
    5. Safinaz H. Abourokbah & Reem M. Mashat & Mohammad Asif Salam, 2023. "Role of Absorptive Capacity, Digital Capability, Agility, and Resilience in Supply Chain Innovation Performance," Sustainability, MDPI, vol. 15(4), pages 1-25, February.
    6. 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.
    7. Lin, Jiabao & Fan, Yuchen, 2024. "Seeking sustainable performance through organizational resilience: Examining the role of supply chain integration and digital technology usage," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    8. 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.
    9. Haris Aslam & Maimoona Waseem & Dilnaz Muneeb & Zulqurnain Ali & David Roubaud & Oksana Grebinevych, 2025. "Customer integration in the supply chain: the role of market orientation and supply chain strategy in the age of digital revolution," Annals of Operations Research, Springer, vol. 348(3), pages 2145-2169, May.
    10. Timothy Amoako & Hao Chen & Stephen Abiam Danso & Edem Segbefia, 2025. "The Role of Top Management Involvement and Supply Chain Integration on Smes’ Innovation Performance: Moderation Impact of Firm Experience Capability," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 5419-5452, March.
    11. Maureen S. Golan & Laura H. Jernegan & Igor Linkov, 2020. "Trends and applications of resilience analytics in supply chain modeling: systematic literature review in the context of the COVID-19 pandemic," Environment Systems and Decisions, Springer, vol. 40(2), pages 222-243, June.
    12. Saumyaranjan Sahoo & Ashwani Kumar & Sachin Kumar Mangla & Anurag Tiwari, 2024. "Industry 4.0 adoption and eco‐product innovation capability—Understanding the role of supply chain integration," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 8798-8814, December.
    13. Su-Yol Lee, 2021. "Sustainable Supply Chain Management, Digital-Based Supply Chain Integration, and Firm Performance: A Cross-Country Empirical Comparison between South Korea and Vietnam," Sustainability, MDPI, vol. 13(13), pages 1-13, June.
    14. Mian Muhammad Atif & Sajjad Nazir & Syed Muhammad Abdullah, 2017. "Antecedents of Organizational Performance in Challenging Business Environment: The role of Employee Commitment and Supply Chain Integration," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 9(4), pages 65-82, December.
    15. Gu, Xinbing & Chan, Hing Kai & Thadani, Dimple R. & Chan, Faith Ka Shun & Peng, Yi, 2023. "The role of digital techniques in organisational resilience and performance of logistics firms in response to disruptive events: Flooding as an example," International Journal of Production Economics, Elsevier, vol. 266(C).
    16. Shashi & Piera Centobelli & Roberto Cerchione & Myriam Ertz, 2020. "Managing supply chain resilience to pursue business and environmental strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1215-1246, March.
    17. Yu, Kangkang & Cadeaux, Jack & Luo, Ben Nanfeng, 2015. "Operational flexibility: Review and meta-analysis," International Journal of Production Economics, Elsevier, vol. 169(C), pages 190-202.
    18. Chen, Meng & Tang, Xinlin & Liu, Hefu & Gu, Jibao, 2023. "The impact of supply chain concentration on integration and business performance," International Journal of Production Economics, Elsevier, vol. 257(C).
    19. Tiwari, Manisha & Bryde, David J. & Stavropoulou, Foteini & Dubey, Rameshwar & Kumari, Sushma & Foropon, Cyril, 2024. "Modelling supply chain Visibility, digital Technologies, environmental dynamism and healthcare supply chain Resilience: An organisation information processing theory perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 188(C).
    20. Yue Liu & Guang Song, 2023. "Role of Logistics Integration Capability in Enhancing Performance in Omni-Channel Retailing: Supply Chain Integration as Mediator," Sustainability, MDPI, vol. 15(11), pages 1-22, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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:gam:jsusta:v:13:y:2021:i:9:p:4669-:d:541202. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.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.