The Effect Of Supply Chain Risk Management On Supply Chain Performance Through Supply Chain Integration And Information Quality In Paper Manufacturer
Keywords:
Information Quality, Supply chain risk, supply chain integration, and performanceAbstract
Globalization affects the changes in business in an area. China's regulation in forbidding the import of recycled paper affects many paper manufacturers almost in the whole of South-East Asia. Paper manufacturer overgrew in East Java in 2017. As the demand grew fast, the Indonesian government revised an old regulation that limits the usage of woods in the paper industry. Because of the disruption, the government take policy the risk that the paper manufacturer's owner must face just got bigger. This research aimed to identify how big supply chain risk management can affect supply chain performance through supply chain integration and information quality. The data was gathered from the paper manufacturing industry using a questionnaire. Thirty questionnaires were received from 40 questionnaires that were sent (response rate of 75 %.). Only a few samples were used because there were only 46 paper manufacturers categorized as the middle and large industry with a total worker of more than 100 people. Partial Least Square analyzed the hypothesis. The result indicates that supply chain risk management affects supply chain integration. Information quality doesn’t directly affect supply chain performance; supply chain risk management affects information quality; supply chain integration affects supply chain performance. The next research should use another type of industry and study the supplier- customer relationship.
References
Al-Shboul, M.A.R., Barber, K.D., Garza-Reyes, J.A., Kumar, V. and Abdi, M.R. (2017). The effect of supply chain management practices on supply chain and manufacturing firms' performance. Journal of Manufacturing Technology Management, 28(5), 577-609, https://doi.org/10.1108/JMTM-11-2016-0154
Cai, X., Qian, Y., Bai, Q., and Liu, W. (2020). Exploration on the financing risks of enterprise supply chain using Back Propagation neural network. Journal of Computational and Applied Mathematics, 367, 112457, https://doi.org/10.1016/j.cam.2019.112457
Dellana, S., Kros, J.F., Falasca, M. and Rowe, W.J. (2019). Risk management integration and supply chain performance in ISO 9001-certified and non-certified firms", International Journal of Productivity and Performance Management, 69(6), 1205-1225. https://doi.org/10.1108/IJPPM-12-2018-0454
Elleuch, H., Dafaoui, E., Elmhamedi, A., and Chabchoub, H. (2016). Resilience and Vulnerability in Supply Chain: Literature review. IFAC-PapersOnLine, 49(12), 1448-1453.
https://doi.org/10.1016/j.ifacol.2016.07.775
Flynn, B. B., Huo, B., and Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28(1), 58–71, https://doi.org/10.1016/j.jom.2009.06.001
Garvey, M.D., and Carnovale, S. (2020). The rippled newsvendor A new inventory framework for modeling supply chain risk severity in the presence of risk propagation. International Journal of Production Economics, 228, 107752, 1-16, https://doi.org/10.1016/j.ijpe.2020.107752.
Hair, J.F., Risher, J.J., Sarstedt, M., and Ringle, C.M. (2019). When to use and how to report the results of PLS-SEM", European Business Review, 31 (1), 2-24. https://doi.org/10.1108/EBR-11-2018-020
Ince, H., Imamoglu, S. Z., Keskin, H., Akgun, A., and Efe, M. N. (2013). The Impact of ERP Systems and Supply Chain Management Practices on Firm Performance: Case of Turkish Companies. Procedia -Social and Behavioral Sciences, 99, 1124–1133, DOI: 10.1016/j.sbspro.2013.10.586
Koçoğlu, İ., İmamoğlu, S. Z., İnce, H., and Keskin, H. (2011). The effect of supply chain integration on information sharing: Enhancing the supply chain performance. Procedia - Social and Behavioral Sciences, 24, 1630–1649, https://doi.org/10.1016/j.sbspro.2011.09.016
Lavastre, O., Gunasekaran, A., and Spalanzani, A. (2012). Supply chain risk management in French companies. Decision Support Systems, 52(4), 828–838, https://doi.org/10.1016/j.dss.2011.11.017
Liu, G., Shah, R., and Schroeder, R. G. (2012). The relationships among functional integration, mass customization, and firm performance. International Journal of Production Research, 50 (3), 677-690, https://doi.org/10.1080/00207543.2010.537390
Marinagi, C., Trivellas, P., and Reklitis, P. (2015). Information quality and supply chain performance: the mediating role of information sharing. Procedia - Social and Behavioral Sciences, 175, 473–479, https://doi.org/10.1016/j.sbspro.2015.01.1225
Munir, M., Jajja, M.S.S., Chatha, K.A., and Farooq, S. (2020). Supply chain risk management and operational performance: The enabling role of supply chain integration. International Journal of Production Economics, 227, 107667, https://doi.org/10.1016/j.ijpe.2020.107667
Ralston, P.M., Blackhurst, J., Cantor, D.E. and Crum, M.R. (2015). A structure–conduct–performance perspective of how strategic supply chain integration affects firm performance. Journal of Supply Chain Management, 51(2), 47-64, doi.org/10.1111/jscm.12064
Sagawa, J. K., and Nagano, M. S. (2015). Integration, uncertainty, information quality, and performance: a review of empirical research. The International Journal of Advanced Manufacturing Technology, 79(1–4), 299–306, https://doi.org/10.1007/s00170-015-6836-5
Sekaran, U., and Bougie, R. (2016). Research methods for business: A skill-building approach. United Kingdom: John Wiley & Sons
Sreedevi, R., and Saranga, H. (2017). Uncertainty and supply chain risk: The moderating role of supply chain flexibility in risk mitigation. International Journal of Production Economics, 193, 332-342, https://doi.org/10.1016/j.ijpe.2017.07.024
Tarigan, Z.J.H., Lianto, and Basana, S. R. (2019a). The Impact of Organizational Commitment on Upgrading ERP for Maintaining the Quality of Information and the ERP Performance. IOP Conference Seri: Material Science and Engineering, 473, 012051, doi:10.1088/1757-899X/473/1/012051
Tarigan, Z.J.H., Siagian, H. and Bua, R.R. (2019b). The Impact of Information System Implementation to the Integrated System for Increasing the Supply Chain Performance of Manufacturing Companies. IOP Conference Seri: Material Science and Engineering 473, 012050, doi:10.1088/1757-899X/473/1/012050
Tarigan, Z.J.H., Siagian, H., and Jie, F. (2020). The role of top management commitment to enhancing the competitive advantage through ERP integration and purchasing strategy. International Journal of Enterprise Information Systems, 16(1), 53-68, DOI: 10.4018/IJEIS.2020010103
Wiengarten, F., Humphreys, P., Cao, G., Fynes, B., and McKittrick, A. (2010). Collaborative supply chain practices and performance: exploring the key role of information quality. Supply Chain Management: An International Journal, 15(6), 463–473.
Yu, W., Chavez, R., Jacobs, M. A., and Feng, M. (2016). Data-driven supply chain capabilities and performance: A resource-based view. Transportation Research Part E: Logistics and Transportation Review, 114, 371-385, https://doi.org/10.1016/j.tre.2017.04.002
Zhou, H., Shou, Y., Zhai, X., Li, L., Wood, C., and Wu, X. (2014). Supply chain practice and information quality: A supply chain strategy study. International Journal of Production Economics, 147(PART C), 624– 633, https://doi.org/10.1016/j.ijpe.2013.08.025
Downloads
Published
How to Cite
Issue
Section
License
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.