The relationship between information sharing, informal contracts and trust on performance of supply chain management in the SMEs of batik

2018 ◽  
Vol 22 (3) ◽  
pp. 292-314 ◽  
Author(s):  
Aries Susanty ◽  
Norma Mustiana Sirait ◽  
Arfan Bakhtiar

Purpose The purpose of this study is twofold: to examine the effect of information sharing and contract on increasing the trust level in the relationship between the batik small- and medium-size enterprises (SMEs) and supplier and to examine the trust on performance of a supply chain related to the procurement of raw cotton fabric (mori). Design/methodology/approach This research used primary data collected through interviews and closed questionnaires using a five-point Likert scale. The sample included 65 people, including batik SME-owners in Pekalongan, a Central Java city. This research was conducted using partial least square (PLS) through SmartPLS 3.0 software to analyze the hypothesis. Findings The results of hypothesis testing indicate that trust between owners of SME and their suppliers has a significant positive effect on the performance of supply chain management (SCM). Strong trust between batik SME- owners with their suppliers will be beneficial for both parties. Among other things, trust can reduce unnecessary cost and activity, reduce the waiting time for the arrival of raw material, reduce the number of inventories and increase profit and customer satisfaction. This result has also show that information sharing and informal contract have a significant positive effect on trust between batik SME-owners and their mori suppliers. In this case, information sharing has a higher effect on trust compared to informal contract. Broader information was distributed to the batik SME-owners and their suppliers, resulting in stronger trust between them. Research limitations/implications The limitations of this study include the relatively small sample size and data collection method used to determine the effect of trust, the number of the antecedent variables of trust and the type of scale used to measure the performance of the supply chain. Suggestions for future research may include expanding the scope of the data collection to other regions in Indonesia; adopting a dyadic approach and longitudinal research in providing evidence on the effect of trust as a component of an interactive activity along the supply chain; adding other variables that contribute towards increasing the trust between SMEs and their suppliers (such as commitment); and enhancing the performance measurement of SCM by using a direct measure of financial and non-financial performance instead of recording the perception of the batik SME-owners. Practical implications As the scale of their business increases, it is better if the batik SMEs can enhance information sharing and informal contract with suppliers to promote the development of trust. In this case, to ensure that batik SMEs will have better information sharing from their supplier, it is better if the batik SME-owners using the criteria of supplier willingness to share detailed information when they select the new supplier. Then, to increase the role of contract on trust, it is better if owner of batik SME learn to understand the written contract processes and procedures as their business scale increases. Social implications The research confirms that information sharing, informal contract and trust between batik SMEs and their suppliers can have a positive effect on the performance of the supply chain. It may encourage more SMEs and suppliers in the batik industry to build better information sharing, informal contract and trust as a bottom line for the economic and non-economic growth of their business. Originality/value The conceptual model used in this study is original, built from past research about the relationship between information sharing, informal contract and trust on the performance of the supply chain. Besides, the selection of the sample is also original, which in this case is on the batik SMEs which have informal contracts. This case has still been rarely studied, and the research is therefore highly valuable.

2017 ◽  
Vol 28 (5) ◽  
pp. 577-609 ◽  
Author(s):  
Moh’d Anwer Radwan Al-Shboul ◽  
Kevin D. Barber ◽  
Jose Arturo Garza-Reyes ◽  
Vikas Kumar ◽  
M. Reza Abdi

Purpose The purpose of this paper is to theorise and develop seven dimensions (strategic supplier partnership, level of information sharing, quality of information sharing, customer service management, internal lean practices, postponement and total quality management) into a supply chain management (SCM) practices (SCMPs) construct and studies its causal relationship with the conceptualised constructs of supply chain performance (SCP) and manufacturing firms’ performance (MFP). The study also explores the causal relationship between SCP and MFP. Design/methodology/approach Data were collected through a survey questionnaire responded by 249 Jordanian manufacturing firms. The relationships proposed in the developed theoretical framework were represented through three hypotheses: H1 – there is a significant relationship between SCMPs and SCP; H2 – there is a significant relationship between SCMPs and MFP; and H3 – there is a significant relationship between SCP and MFP. Linear regression, ANOVA and Pearson correlation were used to test the hypotheses. The results were further validated using structural equation modelling. Findings The results indicate that SCMPs have a positive effect on SCP (H1), which in turn also positively affect MFP (H3). Despite this intermediary positive effect of SCMP on MFP through SCP, the study also suggests that SCMPs have a direct and positive effect on MFP (H2). Practical implications This study provides hard evidence indicating that higher levels of SCMPs can lead to enhanced supply chain and firms’ performance. It also provides SC managers of manufacturing firms with a multi-dimensional operational measure of the construct of SCMPs for assessing the comprehensiveness of the SCMPs of their firms. Originality/value This study is among the very first SCM researches conducted on the Jordanian manufacturing sector, particularly, in relation to the practices that manufacturing firms in this country need to adopt to make their supply chains a solid competitive vehicle for their development. The results have broader implications for all manufacturing companies, particularly in developing economies where the growth of manufacturing and the development of integrated supply chains are key stages in economic development.


2020 ◽  
Vol 120 (11) ◽  
pp. 1977-1999
Author(s):  
Xiaodie Pu ◽  
Zhengxu Wang ◽  
Felix T.S. Chan

PurposeBased on structural embeddedness theory and resource dependence theory, this research aims to examine the mediation role of information sharing in the relationship between deendency structures and electronic supply chain management system (eSCM) adoption and a firm's intention to adopt eSCMs.Design/methodology/approachA survey questionnaire was undertaken from 212 companies based in Mainland China. Three-stage least squares (3SLS) regression was employed to test the research model.FindingsThe results from 3SLS regressions showed that the effect of interdependence on eSCM adoption intention is fully mediated through information sharing when relationship duration is either below or about the mean. Interdependence and dependence disadvantage was shown to have significant positive effects on eSCM adoption while the effect of dependence advantage was statistically insignificant. Relationship duration was found to negatively moderate the relationship between information sharing and adoption intention.Originality/valueThrough investigating factors of inter-organizational relationships, this study fills the knowledge gap in the traditional paradigms which ignore the collaborative nature of eSCM and analyse related problems based on a single firm's point of view.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vivek Roy

PurposeSupply chain traceability and supply chain visibility have become a critical element for the effective management of contemporary complex supply chains. At their core is information sharing, which has been acknowledged as a key prerequisite for logistics and supply chain performance, but whose notional underpinnings have not been delineated fully, leading to interchangeable deployment of these terms. Addressing the shortcoming, this paper aims to establish a contrast between the two notions.Design/methodology/approachDrawing from systematic review protocols, a multi-disciplinary review scope is constructed wherein the synthesis is strategized to primarily channel implications for the scholarship of logistics and supply chain management. The review is aimed at addressing two research objectives: (1) how the notions of traceability and visibility in supply chain management develop contrast in terms of their thematic emphasis and (2) to attain an integrative understanding of the notional convergence and divergence between supply chain traceability and visibility for raising strategic recommendations.FindingsThe review outcomes help contrast both the convergence and the divergence between traceability and visibility in the supply chain environment, and the differentiated but fundamental role that information sharing plays within these notions to outline why they are not interchangeable.Originality/valueThe originality of the findings lies in the conceptual synthesis of the relevant literature from both technological and non-technological perspectives to ultimately draw logistics and supply chain management implications. The review also points out key strategic considerations to demarcate the notional boundaries of traceability and visibility in future research.


2021 ◽  
Vol 3 (1) ◽  
pp. 18
Author(s):  
Muthia Roza Linda ◽  
Akhyar Fauzi

This study aims to determine the effect of supply chain management and the implementation of enterprise resource planning on organizational performance. The population and sample used in this study was employees of PT. Semen Padang is involved in the supply chain management process and runs an enterprise resource planning system. Data was collected through distributing questionnaires and data processing was carried out through SPSS 16.0 software. The results of this study indicate that supply chain management has a significant positive effect on organizational performance. The results of this study indicate that the implementation of enterprise resource planning on organizational performance has a significant positive effect on organizational performance.Keywords: Enterprise resource planning, supply chain management, organizational performance


2019 ◽  
Vol 36 (7) ◽  
pp. 1053-1077 ◽  
Author(s):  
Binh An Thi Duong ◽  
Huy Quang Truong ◽  
Maria Sameiro ◽  
Paulo Sampaio ◽  
Ana Cristina Fernandes ◽  
...  

Purpose A single supply chain management (SCM) practice will have a certain impact on organizational performance (OP). However, since it is placed in a system that many other practices are conducted simultaneously, the practice itself will interact with other ones (i.e. affect/be affected). As a consequence, the efficiency of the affected practice is increased and it is expected to maximize the impact of SCM practices on OP. This mechanism is named the “resonant” influence that is a new approach in the SCM literature. The purpose of this paper is to test the above mechanism toward an insight into the relationship between SCM and OP. Design/methodology/approach Two models were compared: the competitive models only exist in direct effects; and the other contains relationships between practices that are able to show the mechanism of the resonant influence, i.e. the hypothetical model. A data set gained from Vietnamese garment enterprises was used to validate the mechanism of the resonant influence. Findings Empirical evidence from Vietnamese garment sector showed that the competitive models could explain 42.8, 26.3 and 34 percent variance of operational performance, customer satisfaction and financial performance, respectively. In the meantime, the hypothetical model containing the resonant influence is capable to explain 69.5, 33.1 and 57.3 percent. For the impact of each SCM practice on OP, all relationships in the hypothetical model are also greater than those in competitive ones. These results supported the mechanism of the resonant influence. Research limitations/implications This research provides an insight into the relationship between SCM practices and OP. By the resonant influence, the effectiveness of each affected SCM practice itself is magnified and OP is also increased remarkably. Practical implications Understanding the resonant influence, companies can apply this mechanism to enhance effectiveness of SCM practices at the lowest cost. To this end, the SCM practices should be implemented simultaneously as an integrated system rather than independent ones and the structural model proposed in this study is able to be used as “a guide map” for applying this mechanism. Originality/value This is one of pioneer empirical studies in the SCM literature that proposed and validated the concept of “resonant influence.”


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Satie Ledoux Takeda-Berger ◽  
Guilherme Luz Tortorella ◽  
Carlos Manuel Taboada Rodriguez ◽  
Enzo Morosini Frazzon ◽  
Tamie Takeda Yokoyama ◽  
...  

Purpose The purpose of this paper is to classify the main barriers related to the implementation of lean supply chain management (LSCM) and prioritize its main practices. A case study approach was conducted to obtain values for the intensity of the relationship between LSCM practices and barriers to mitigate or even anticipate difficulties in its implementation. Design/methodology/approach The case study in a company in southern Brazil that is in lean implementation is used for conducting this research. The methodology was structured in three steps, namely, classification of the main barriers through risk analysis, selection of LSCM practices appropriate to the company context and ranking and prioritization of the main practices of LSCM related to the barriers to lean implementation. Findings As a result, with the combination of two approaches, failure mode and effect analysis (FMEA) and analytical hierarchical process (AHP), it was possible to obtain values for the intensity of the relationship between LSCM practices and barriers. From the 12 barriers, 5 reached a high-risk degree that can be mitigated, and among the 18 practices found, 7 have the potential to be implemented. Originality/value This research allows direct efforts to continuously improve the supply chain to mitigate or even anticipate difficulties in its implementation. The proposed methodology, combining FMEA and AHP is easy to apply and understand, allowing managers and professionals to replicate it in the context of their supply chain and verify results similar and comparable to those obtained here.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maicom Sergio Brandao ◽  
Moacir Godinho Filho ◽  
Andrea Lago da Silva

PurposeThis study aims to identify the main elements that describe the luxury supply chain. It discusses the relationship between them in a framework that organises and summarises the literature.Design/methodology/approachA systematic literature review was conducted that returned 288 papers, which were selected based on specific quality and theme criteria. Content analysis was used to investigate the alignment of critical success factors with the performance goals and configuration elements of luxury supply chains in the final sample of 66 papers.FindingsThe results provide a framework that clarifies the relationship between the configuration elements and supply chain performance goals and the critical success factors for three different levels of the luxury market. Depending on the level of luxury, performance goals and configuration elements assume a different importance and different characteristics. An understanding of these differences is relevant for defining strategies and managing luxury supply chains properly. The three different configurations also reveal new research avenues to be further investigated.Research limitations/implicationsThe study is limited in terms of its data source as the papers reviewed were collected from only three academic databases.Practical implicationsThe findings of this work help incorporate knowledge about luxury supply chain management into a framework that can be easily used for defining strategies and organising the supply chain according to the different levels of luxury.Originality/valueThis study represents an important evolution in organising the current literature on luxury supply chain management into a framework that covers critical success factors, supply chain performance goals and configuration elements for three different levels of luxury, which in turn creates promising opportunities for future enquiry.


Author(s):  
Rismutia Hayu Deswati ◽  
Lathifatul Rosyidah ◽  
Tenny Apriliani

Udang vaname merupakan salah satu komoditas ekspor unggulan Indonesia di pasar internasional. Udang vaname yang diekspor merupakan hasil produksi dari usaha budi daya yang tersebar di berbagai provinsi di Indonesia sehingga dibutuhkan rantai pasok yang optimal untuk mendukung kelancaran usaha budi daya tersebut. Tujuan dari penelitian ini untuk menganalisis pengaruh manajemen rantai pasokan terhadap keunggulan bersaing suatu usaha budi daya udang vaname dan dampak terhadap performa usaha tersebut. Lokasi penelitian adalah Provinsi Jawa Timur dan Bali karena konektivitas yang kuat antara masing-masing pembudi daya di kedua lokasi tersebut. Data yang dikumpulkan diverifikasi kemudian dianalisis menggunakan pendekatan Structural Equation Model (SEM). Hasil dari analisis menemukan bahwa variabel hubungan dengan pemasok dan modal manusia berpengaruh positif terhadap keunggulan bersaing pembudi daya dan juga berpengaruh positif kepada performa usaha budi daya tersebut. Variabel hubungan dengan pelanggan tidak berpengaruh baik terhadap keunggulan bersaing maupun performa usaha. Dari hasil ini diharapkan pemerintah bisa mengintervensi dalam bentuk perbaikan manajemen rantai pasokan udang vaname dengan meningkatkan kompetensi masing-masing anggota rantai pasok sehingga dapat optimal pada posisinya.Title: The Effect of Supply Chain Management on The Business Performance of Vaname Shrimp Farming in The Province of Bali and East JavaVaname is one of Indonesia’s leading export commodities in the international market. The exported vaname are the products from aquaculture business which are spread in various provinces in Indonesia, so an optimal supply chain is needed to support this business. The purpose of this study is to analyze supply chain management affects the competitive advantage of a vaname farming business and the impact on the performance of the business. The research sites are East Java and Bali because of the strong connectivity between each farmer in both locations. The collected data is verified and then analyzed using the Structural Equation Model (SEM) approach. The results of the analysis concluded that the relationship between suppliers and human capital variables had a positive effect on the competitive advantage of farmers and also had a positive effect on the performance of the aquaculture business. While the relationship with customer variables do not affect both competitive advantage and business performance. From this result, the government is expected to be able to intervene in the form of improved management of the vaname supply chain by increasing the competence of each member of the supply chain so that it can be optimally positioned. 


2019 ◽  
Vol 30 (1) ◽  
pp. 98-121 ◽  
Author(s):  
Sibel Yildiz Çankaya ◽  
Bulent Sezen

PurposeThe purpose of this paper is to explore the impact of eight dimensions of green supply chain management (GSCM) on economic, environmental and social performance, which are the three dimensions of corporate sustainability. The eight dimensions covered in this study are: green purchasing, green manufacturing, green distribution, green packaging, green marketing, environmental education, internal environmental management and investment recovery.Design/methodology/approachThe relationships between dimensions of GSCM and sustainability performance are tested by using a plant-level survey. A proposed research model and hypotheses are tested by using cross-sectional face-to-face and e-mail survey data collected from manufacturing firms in Turkey. Structural equation modeling is used to test the proposed hypotheses.FindingsExcept for green purchasing, all GSCM dimensions are found to be related with at least one of the performance dimensions.Practical implicationsThe results are important in highlighting the importance of GSCM in improving sustainability performance.Originality/valueThis paper enhances the understanding of the relationship between different dimensions of GSCM and the three sustainability performance factors. While there are very few studies examining the relationship between GSCM and corporate sustainability, this study is important in terms of exploring the effects of dimensions of GSCM applications on economic, environmental and social performance one by one, by examining these applications in the form of eight dimensions.


2017 ◽  
Vol 34 (2) ◽  
pp. 176-193 ◽  
Author(s):  
Huy Quang Truong ◽  
Maria Sameiro ◽  
Ana Cristina Fernandes ◽  
Paulo Sampaio ◽  
Binh An Thi Duong ◽  
...  

Purpose The purpose of this paper is to provide an empirical evidence about the relationship between practices of supply chain management (SCM) and operational performance (OP). Design/methodology/approach Based on a comprehensive literature review, a set of SCM practices has been identified and selected to develop a conceptual model as well as to establish their relationship to companies’ OP. The measurement scales of the practices were developed in four steps: identification and development of initial instrument; personal interviews and Q-sort; large-scale data collection; and large-scale analysis in order to ensure unidimensionality, reliability and validity. Structural equation modeling was used to validate the model with the data were collected in Vietnamese garment enterprises. Findings The study consolidated relationships between the SCM practices and OP. According to the research results, these practices have a “resonant” influence on OP that can explain 52.6 percent variance of this output concept. In particular, customer focus and supplier management both direct and indirect impact on OP while top management support and process control/improvement only have indirect and direct influences on OP, respectively. Research limitations/implications There are some limitations that can guide academics to new lines of future research: to extend the scope of the survey to include different countries and new situations, so results can be generalized; to consider the impacts of the SCM practices on the entire supply chain performance; and to explore additional factors that can further explain OP, such as operational environment, capital, technology, human resource, etc. Practical implications The authors suggest that the SCM practices should be implemented as an integrated system rather than independent practices, in which they interact with each other and improve OP. Originality/value The empirical results of this study provide an evidence to consider the SCM practices as reliable predictors for OP. According to the research, these practices interact with each other and have both direct and indirect effects on OP. In other words, through the mutual interaction among the SCM practices, they have the “resonant” influence on improving OP. Moreover, the proposed research model analyzing the relationship among SCM practices and OP and its validation using the Vietnam garment industry provided valuable insights both from theoretical and practical perspectives.


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