Analysis of the Effect of Trust and Information Sharing on Supply Chain Performance with Innovation as a Mediating Variable (Study on gula semut SMEs in Kulon Progo Regency)

Ardhia Rezkitiani Andiana; Titik Kusmantini; Nilmawati Nilmawati

doi:10.32535/ijabim.v9i1.2914

Analysis of the Effect of Trust and Information Sharing on Supply Chain Performance with Innovation as a Mediating Variable (Study on gula semut SMEs in Kulon Progo Regency)

Ardhia Rezkitiani Andiana, Titik Kusmantini, Nilmawati Nilmawati

Abstract

This study aims to determine the effect of trust (X1), information sharing (X2) on supply chain performance (Y) mediated by Innovation SMEs. The population in this study were SMEs in Kulon Progo Yogyakarta. From the population taken 35 samples with non-probability sampling method. The model in this study uses Partial Least Square. And the results showed that trust and information sharing have a significant positive effect on supply chain performance mediated by SME Innovation. Applicative suggestions that can be applied are the need for trust between supply chain members. because there is still distrust between supply chain members which in the future can hinder supply chain performance. In addition, there is a need for innovations that can accelerate the performance of the supply chain such as the need for a sap drying oven, plastic caps so that the sap is not mixed with water and dirt and jerry cans are placed between 4 - 5 coconut trees which makes it easier to transport raw material supplies. With trust and information sharing can create these innovations that can affect supply chain performance.

Keywords

information sharing; innovation; SMEs; Supply Chain Performance; Trust

Full Text:

PDF

References

Ahmed, M. A. (2022). Impact of Information Sharing on Supply Chain Performance with Mediation of Trust. South Asian Journal of Social Review. https://doi.org/10.57044/sajsr.2022.1.2.2207

Arsawan, I. W. E. (2023). Expanding supply chain performance in logistic and forwarder companies: How collaboration enhance capabilities and innovation performance. Matrik : Jurnal Manajemen, Strategi Bisnis dan Kewirausahaan. https://doi.org/10.24843/matrik:jmbk.2023.v17.i01.p05

Bidault, F., & Castello, A. (2010). Why too much trust is death to innovation. MIT Sloan Management Review, 51(4).

Charterina, J., Landeta, J., & Basterretxea, I. (2018). Mediation effects of trust and contracts on knowledge-sharing and product innovation: Evidence from the European machine tool industry. European Journal of Innovation Management, 21(2). https://doi.org/10.1108/EJIM-03-2017-0030

Chen, I. J., & Paulraj, A. (2004). Towards a theory of supply chain management: The constructs and measurements. Journal of Operations Management, 22(2). https://doi.org/10.1016/j.jom.2003.12.007

Christensen, C. M. (2015). Disruptive Innovation Is a Strategy, Not Just the Technology. https://www.businesstoday.in/magazine/cover-story/story/clayton-christensen-on-theory-of-disruptive-innovation-138922-2014-12-13

Drucker, P. F. (2023). From Progress to Innovation. Landmarks of Tomorrow. https://doi.org/10.4324/9781003423461-2

Ekon.go.id. (2018). Potensi Gula Semut Dalam Negeri Yang Mendunia. Ekon.go.id. https://ekon.go.id/publikasi/detail/1377/potensi-gula-semut-dalam-negeri-yang-mendunia

Fadhilah, A. F., Nurmalina, R., & Tinaprilla, N. (2017). Efisiensi kinerja rantai pasok gula semut CV. Manoreh Politan di Kabupaten Kulon Progo. Journal of Food System and Agribusiness, 1(2).

Fawcett, S. E., Osterhaus, P., Magnan, G. M., Brau, J. C., & McCarter, M. W. (2007). Information sharing and supply chain performance: The role of connectivity and willingness. Supply Chain Management, 12(5). https://doi.org/10.1108/13598540710776935

Firmansyah, H. S., & Siagian, H. (2022). The impact of information sharing on supply chain performance through supplier quality management, supply chain agility, and supply chain innovation. Petra International Journal of Business Studies, 5(2), 119-131. https://doi.org/10.9744/ijbs.5.2.119-131

Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28(1). https://doi.org/10.1016/j.jom.2009.06.001

Gwaltu, P. M., & Mrisho, D. H. (2023). Examining the effect of trust on supply chain performance: The mediating role of process innovation. East African Journal of Business and Economics, 6(1). https://doi.org/10.37284/eajbe.6.1.1256

Hair, J. F., Ringle, C. M., & Sarstedt, M. (2013). Partial least squares structural equation modeling: Rigorous applications, better results and higher acceptance. Long Range Planning, 46(1–2). https://doi.org/10.1016/j.lrp.2013.01.001

Hausman, W. H. (2005). Supply chain performance metrics. The Practice of Supply Chain Management: Where Theory and Application Converge. https://doi.org/10.1007/0-387-27275-5_4

Hurley, R. F., Hult, G. T. M., & Knight, G. A. (2005). Innovativeness and capacity to innovate in a complexity of firm-level relationships: A response to Woodside (2004). Industrial Marketing Management, 34(3). https://doi.org/10.1016/j.indmarman.2004.07.006

Jajja, M. S. S., Brah, S. A., & Hassan, S. Z. (2014). Supply chain strategy and organisational performance: Role of core operational functions. International Journal of Services and Operations Management, 17(3). https://doi.org/10.1504/IJSOM.2014.059563

Kankam, G., Kyeremeh, E., Som, G. N. K., & Charnor, I. T. (2023). Information quality and supply chain performance: The mediating role of information sharing. Supply Chain Analytics, 2. https://doi.org/10.1016/j.sca.2023.100005

Kohli, A. S., & Jensen, J. B. (2010). Assessing effectiveness of supply chain collaboration: An empirical study. Supply Chain Forum: An International Journal, 11(2). https://doi.org/10.1080/16258312.2010.11517228

Kusmantini, T., Prayogi, D. S., Wahyuningsih, T., & Pratiwi, K. W. (2020). Effect of information sharing on supply chain performance mediated by company relationship (study at batik SMEs in Yogyakarta City). Jurnal Wawasan Manajemen), 8(1). https://doi.org/10.20527/jwm.v8i1.52

Liao, S. H., Fei, W. C., & Chen, C. C. (2007). Knowledge sharing, absorptive capacity, and innovation capability: An empirical study of Taiwan’s knowledge-intensive industries. Journal of Information Science, 33(3). https://doi.org/10.1177/0165551506070739

Liestyana, Y., Oetomo, H., Wahyuningsih, T., & Ariyanto, M. K. (2022). Information sharing, informal contracts, and supply chain performance of SMEs in Gunung Kidul Regency, Indonesia. International Journal of Applied Business and International Management, 7(1), 151-169. https://doi.org/10.32535/ijabim.v7i1.1449

Liew, A. (2007). understanding data, information, knowledge and their inter-relationships. Journal of Knowledge Management Practice, 8.

Mcleod, R., & Schell, J. G. P. (2007). Management Information System (10th ed.). Pearson.

Moorman, C., Deshpande, R., & Zaltman, G. (1993). Factors affecting trust in market research relationships. Journal of Marketing, 57(1). https://doi.org/10.2307/1252059

Owot, G. M., Okello, D. M., Olido, K., & Odongo, W. (2023). Trust-supply chain performance relationships: unraveling the mediating role of transaction cost attributes in agribusiness SMEs. Frontiers in Sustainable Food Systems, 7. https://doi.org/10.3389/fsufs.2023.1113819

Panayides, P. M., & Lun, Y. H. V. (2009). The impact of trust on innovativeness and supply chain performance. International Journal of Production Economics, 122(1). https://doi.org/10.1016/j.ijpe.2008.12.025

Pandey, V. C., Garg, S. K., & Shankar, R. (2010). Impact of information sharing on competitive strength of Indian manufacturing enterprises: An empirical study. Business Process Management Journal, 16(2). https://doi.org/10.1108/14637151011035570

Rashid, A., & Rasheed, R. (2022). A paradigm for measuring sustainable performance through big data analytics–artificial intelligence in manufacturing firms. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4087758

Render, B., & Heizer, J. (2005). Opperations Management (7th ed.). Pearson Education.

Russell, R. S., & Taylor, B. W. (2011). Operations Management. Wiley.

Sekaran, U., & Bougie, R. (2014). Research Methods for Business. (6th ed.). John Wiley & Sons.

Sujatmika, S., Pratondo, K., Indrianto, A. P., Kusmantini, T., & Pohan, A. R. (2023). Achieving supply chain performance during the covid-19 pandemic: Antecedent studies and the important role of supply chain agility. International Journal of Accounting & Finance in Asia Pasific, 6(3), 106-117. https://doi.org/10.32535/ijafap.v6i3.2630

Syofya, H., & Chatra, A. (2022). The influence of traceability of kerinci coffee agricultural products on agricultural value added in Jambi Province. International Journal of Entrepreneurship and Business Development, 5(2), 246-252. https://doi.org/10.29138/ijebd.v5i2.1746

Villena, V. H., Revilla, E., & Choi, T. Y. (2011). The dark side of buyer-supplier relationships: A social capital perspective. Journal of Operations Management, 29(6). https://doi.org/10.1016/j.jom.2010.09.001

Yoshizaki, H. T. Y., Martínez, J. C. V., & Argueta, C. M. (2018). Supply chain management and logistics in Latin America: A multi-country perspective. Supply Chain Management and Logistics in Latin America: A Multi-Country Perspective.

DOI: https://doi.org/10.32535/ijabim.v9i1.2914