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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
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    3. 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.
    4. 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.
    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. 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.
    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).
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