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.
The global order has suddenly changed due to the COVID-19 pandemic. Many countries, including Indonesia, have applied lockdown policies to stop the spread of COVID-19. Lockdown policies have disrupted the supply of raw materials and the demand for finished goods. The manufacturing industry is one of the sectors that has suffered most in this situation, and they have struggled to reconfigure their internal and external supply chain network and partnership. This study examined the impact of internal integration, supply chain partnership, supply chain agility, and supply chain resilience on sustainable advantage. The participants of this study were from manufacturing companies in Indonesia. For data collection, a questionnaire was used, with a five-point Likert scale to obtain the respondents’ opinions. Using Google Form link, the questionnaire was distributed via email and the WhatsApp social media application to the predetermined set of manufacturing companies. Respondents filled out 672 questionnaires, and 456 respondents (corresponding to 67.86%) filled it out correctly and were considered valid for further analysis. Partial least squares (PLS) regression was used to analyze the data using the SmartPLS software version 3.3. The results supported all nine hypotheses proposed. Internal integration through interdepartmental data sharing affects supply chain (SC) partnerships, SC agility, and SC resilience. Moreover, SC partnerships, through the on-time delivery of materials and by coping with changing demand, improve SC agility, SC resilience, and sustainable advantages. SC agility, in keeping the production process running normally and regulating the production capacity, affects SC resilience and sustainable advantage. SC resilience improves sustainable advantage by providing timely product delivery and reliable sales volumes in pandemic conditions. These results provide insights for managers into enhancing the sustainable advantage by improving supply chain agility, supply chain resilience, and supply chain partnerships. This study could contribute and extend the acceptance of previous studies in the context of the manufacturing industry.
The role of the top management commitment is in enhancing the competitive advantage through ERP integration and the purchasing strategy. Data were collected using questionnaires from 49 manufacturing companies domiciled in the region of East Java, Indonesia. PLS technique was used to analyze the data. The result of the study indicated that top management commitment influences ERP integration and the purchasing strategy, top management commitment influences the competitive advantage, ERP integration affects the purchasing strategy, and ERP integration and purchasing strategy influences the competitive advantage. One of the most exciting findings revealed that ERP integration and purchasing strategy mediated the influence of top management commitment on the competitive advantage. Top management influences, directly and indirectly, the competitive advantage. This result provides the managerial implication that the management needs to establish an ERP integration and define a proper purchasing strategy in enhancing the competitive advantage of the manufacturing company.
The manufacturing industry always tries to improve performance amid the trade globalization. Demand and supply uncertainty, and increasingly the intense competition, prosecute the presence of an affective leadership to integrate the company's internal and external resources in improving company performance. This research investigates the role of affective leadership in firm performance through an internally integrated system and external integration in FMCG companies. Data collection used questionnaires, designed with a five-point Liker scale, were distributed to 55 fast-moving consumer goods (FMCG) manufacturing companies. The data analysis used the PLS technique utilizing smart PLS software to assess the validity and reliability of the outer model and to examine the hypotheses developed. The results of the hypothesis testing found that affective leadership can improve internal system integration, external integration, and firm performance. Internal system integration has an impact on external integration but is not strong enough to have a direct effect on firm performance. The internally integrated system has an influence on firm performance through external integration. The company's ability to share information with external partners can improve firm performance through demand fulfillment. The study provides a managerial implication on how to enhance firm performance in the context of internal and external system integration. The finding of this research enriches the current studies in supply chain management.
Synergy is built by manufacturing companies with suppliers and customers in the supply chain to improve organization performance. The research provides simultaneous testing of competency management, supply chain integration, supply chain quality, operational capability as a strategy to improve company performance. Collecting data for medium and large manufacturing companies in Indonesia are performed by sending a questionnaire link via email and WhatsApp. 625 respondents received the questionnaires and 152 respondents filled them with a response rate of 24.32%. Data analysis were performed using partial least squares to test the hypotheses and found that competency management had a direct impact on supply chain integration (0.598), supply chain quality (0.387) and operational capability (0.346). Supply chain integration affects increasing supply chain quality (0.428), operational capability (0.619) and organizational performance (0.255). Supply chain quality impacts increasing operational capability (0.260) and does not significantly affect organizational performance (0.018). The operational capability of a manufacturing company has an impact on improving organizational performance (0.584). Practical contribution is that managers who manage the supply chain must continue to enhance skills and knowledge and supply chain components in quality for increased performance.
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