The Impact of Information Sharing and Inventory Management Practices on Firms’ Performance in Supply Chain Practices

Abstract

This study’s aim is to conduct an empirical investigation of the impact of supply chain practices on firm performance. The prime objective of the paper is to study the impact of information-sharing practices and inventory management on firm performance. To realize the specified objective of the study, data were gathered from 170 individuals who are familiar with the supply chain practices of the companies and analyzed using structural equation modeling (SEM). The result shows a significant direct and indirect effect of information sharing and inventory management practices on firm performance. Generally, the results show that higher information-sharing practices and better inventory management practices lead to greater firm performance; and higher information-sharing leads to improved inventory management, which in turn leads to greater firm performance. Theoretically, the result provides evidence of the effects of information sharing and inventory management on the supply chain practices’ performance in a firm. The managerial implications of the results are enhancing information sharing and inventory management practices by adopting, internalizing, and building information technology into all the business operations to enhance information sharing and inventory management practices to enhance firm performance.

How Does Digital Transformation Improve Supply Chain Performance: A Manufacturer’s Perspective

“…This corresponds to the economic perspective among the three pillars (environmental, economic, and social) of sustainability mentioned by reference [10], which can be understood as creating new value through cost reduction or differentiation of the company. In other words, in order to maintain corporate sustainability in a business environment with high uncertainty, the use of digital technology is emerging as a means of efficient and effective cooperation and communication between companies [11][12][13]. The second reason is that with the advancement of IT technology, the technologies that companies can utilize have become easier to use and more diverse.…”

“…Specifically, based on previous studies, we explain a company's developmental corporate culture and the concept of trust between companies as antecedent variables for companies to accept digital transformation [27][28][29]. Next, based on the fact that digital strategy has the basic goal of efficient information sharing and dissemination between firms through the digitization of information [12,13,30], we study information sharing as a parameter to explain the performance of digital transformation. Lastly, we assume that the stronger the trust relationship between companies, the higher the level of information sharing between companies through digital transformation, thereby further improving corporate performance.…”

The Effect of Inventory Control on the Work Productivity of Inventory Division Employees at PT Duta Sentosa Yasa (MR DIY) KBN Marunda

“…Based on the phenomenon described above, the author is interested in discussing and explaining it in an article entitled "The Influence of Inventory Control on the Work Productivity of Inventory Division Employees at PT Duta Sentosa Yasa (MR DIY) KBN Marunda" (Gebisa, 2023;Muttaqin, 2022;Sopyani, 2022). The aim of this research is to determine the magnitude of the influence of inventory control on the work productivity of inventory division employees at PT Duta Sentosa Yasa (MR DIY) KBN Marunda.…”

Implementation Economic Order Quantity and Reorder Point Methods in Inventory Management Information Systems

“…An inventory system is a set of policies as well as controls that monitor inventory levels and determine what inventory should be stored, when to replenish stock and how much should be ordered. Manufacturing supplies are generally in goods's form that contribute to or become part of the results of the company's production process [9]. With the existence of an inventory system, management can control the stock of goods and materials, production processes and sales transactions, even if necessary, can stop the production process [10].…”