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Original Research

THE EFFECT OF SUPPLY CHAIN MANAGEMENT PRACTICES AND SUPPLY CHAIN INTEGRATION ON INFORMATION TECHNOLOGY, INNOVATION AND BUSINESS PERFORMANCE IN THE MANUFACTURING INDUSTRY IN EAST JAVA

SONI HARTANTO 1, SLAMET RIYADI 2, and SUMIATI 3.

Vol 18, No 03 ( 2023 )   |  DOI: 10.17605/OSF.IO/5AQU6   |   Author Affiliation: Doctoral Program Student in Economics, Universitas 17 Agustus 1945 Surabaya, Indonesia 1; Universitas 17 Agustus 1945 Surabaya, Indonesia 2,3.   |   Licensing: CC 4.0   |   Pg no: 1072-1092   |   Published on: 24-03-2023

Abstract

The purpose of this study was to examine and analyze the significance of the influence of Supply Chain Management Practices, Supply Chain Integration, Information Technology and innovation on Business Performance in manufacturing companies in East Java. This study uses a survey research design to top management who is responsible for the operations of manufacturing companies in East Java Province, Indonesia on a large scale where the number is 1,231 companies based on data processed by the East Java Industry and Trade Office that received convenience facilities during 2020. Based on the Slovin formula, the research sample required a number of 93 respondentsthe data analysis technique in this study used Partial Least Square (PLS). The results show (1) Supply Chain Management Practices has a positive and significant effect on Information Technology, (2) Supply Chain Management Practices has a positive and significant effect on Innovation, (3) Supply Chain Management Practices Integration has a positive and significant effect on Business Performance, (4) Supply Chain Integration has a positive and significant effect on Information Technology, (5) Supply Chain Integration has a positive and significant effect on Innovation, (6) Supply Chain Integration has a positive and significant effect on Business Performance, (7) Information Technology has a positive and significant effect on Innovation (8) Information Technology has a positive and significant effect on Business Performance, and (9) Innovation has a positive and significant effect on Business Performance,


Keywords

Supply Chain Management Practices, Supply Chain Integration, Information Technology, Innovation, Business Performance