The effect of key user capability on supply chain digital and flexibility in improving financial performance

Abstract

Organizational competitiveness is enhanced by implementing supply chain integration. Organizations, through information technology, can integrate internal and external cross-functional. The team assigned to run the integration system in its function is designated as the key user who can implement and maintain an ongoing basis. Key user capabilities are needed to maintain a digital supply chain in information technology systems to integrate internally and externally. Data analysis using Partial least squares (PLS) on 89 hotel organizations with a one-star category or more shows that key user capability significantly affects internal cross-functional integration (β = 0.728) and external cross-functional integration (β = 0.127). Key user capability has an impact on supply chain flexibility (β = 0.370) while internal cross-functional integration influences increasing supply chain flexibility (β = 0.373) and financial performance (β = 0.421). External cross-functional integration increases supply chain flexibility (β = 0.316) and financial performance (β = 0.441). Lastly, supply chain flexibility impacts increasing financial flexibility (β = 0.192). The research contributes enrichment to the theory of digital supply chain and practical contribution to enlighten top management in information technology investment.

The influence of supplier competency on business performance through supplier integration, vendor-managed inventory, and supply chain collaboration in Fuel Station: An evidence from Timor Leste

“…Information technology enables the business partners to be integrated with upstream . Internal integration emphasizes the importance of integrated processes and process management in functions and departments and primarily involves cross-functional data in internal business (Basana et al, 2023). Supplier and customer integration refer to strategic collaboration between companies (Qiao & Zhao, 2023;Siagian et al, 2022).…”

“…Business performance is the result that refers to a company's success in meeting its business objectives compared to its competitors (Hong et al, 2019;Siagian et al, 2022). Company performance is divided into operational performance and performance related to finance (Basana et al, 2023). Business performance in operational aspects, according to Rajaguru and Matanda (2019), is meeting requirements, responding to changes in market demand, the effectiveness of on-time delivery, reducing waiting time to fulfill customer orders, the effectiveness of reliable delivery of quality products, reducing of shipping costs to customers, reduction of overhead costs and inventory costs.…”

“…Information is provided by suppliers to companies or vice versa as a form of collaboration (Singh, 2013). Sharing information between suppliers and companies must be adequate, accurate, and timely so that cross-functional with suppliers runs well (Basana et al, 2023). Information sharing is essential for companies to build supply chain collaboration to improve performance (Panahifar et al, 2018).…”

“…Integrating suppliers with companies impacts business performance to increase competitiveness (Siagian et al, 2022). Supplier integration can reduce procurement costs by building close relationships with suppliers, which is conducive to improved business performance (Basana et al, 2023). Supplier integration helps facilitate mutual understanding, reduce transaction costs, and reduce production/operational costs (Qiao & Zhao, 2023).…”

“…Supplier integration can also forecast demand and inventory levels to improve product and production requirements with suppliers and better use suppliers' capabilities and cost structures (Swink et al, 2007). Supplier integration occurs between functions in an integrated company with existing business functions at company vendors as a form of crossfunctional external integration (Basana et al, 2023). Supply chain capabilities in companies can improve business performance (Yuan et al, 2022).…”