The effect of competency management on organizational performance through supply chain integration and quality

Abstract

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.

Impact of Internal Integration, Supply Chain Partnership, Supply Chain Agility, and Supply Chain Resilience on Sustainable Advantage

“…The company's purchasing department coordinates actively with suppliers when there is a change in orders from customers. This study supports previous research results stating that internal integration impacts SC partnerships in companies [14,16,17,35,42].…”

“…A company's internal integration with information technology implementation is used for gathering data, processing information, and utilization [35]. Internal integration can access data information from other departments together and in real time [14]. Information obtained from information technology systems can support decision making.…”

“…The rapid changes in the fashion industry have greatly determined companies' fast responses to building competitiveness [13]. Companies require collective capabilities between internal and external functions to provide accurate and quick responses to disrupted changes [14]. Collective capabilities are related to human resources and information resources within a single database that can integrate its internal capabilities [15].…”

“…Internal integration and external integration can improve company performance and generate sustainable advantages for fast-moving consumer goods companies [22]. SC integration and SC agility improve organization performance by producing new products and improving customer satisfaction as a sustainable advantage [14].…”

“…Furthermore, SC resilience is a company's capability to cooperate with its partners to resolve and recover from any unexpected disturbance and carry out normal activities in its operational functions and structures [33]. Operation capability related to resource planning, production capability in producing products, market the products, and use of resources will determine a manufacturing company's resilience [14]. A strong company can manage internal company resources and establish a good system to resolve any sudden emerging problem [34].…”