Supply Chain Digitalization, Green Supply Chain, Supply Chain Resilience Toward Competitiveness and MSMEs Performance

Zainurrafiqi Zainurrafiqi, Gazali Gazali

Abstract


MSMEs that previously only relied on human resources are now forced to keep up with the times by utilizing IT in every process, from raw material procurement, production processes to distribution processes in order to remain competitive in facing a business world full of challenges. Information Technology, which is closely related to digitalization, can help companies gain sustainable competitiveness in the supply chain by improving certain asset relationships, facilitating information exchange, and building long-term cooperative relationships as a form of implementing Supply Chain Digitalization. The ability of MSMEs to implement green supply chain management is a unique ability to improve company performance. For example, a company can reduce production costs by involving its suppliers in several green initiatives, such as material recycling, environmentally friendly packaging, and efficient use of energy. Companies with high supply chain resilience will be strong and grow significantly in the face of crises, thereby minimizing losses. Therefore, companies with good supply chain resilience will have a competitive edge so they can grow faster and win the competition from their competitors. For this reason, this study aimed to examine the effect of supply chain digitization, green supply chain, and supply chain resilience on competitiveness. This research is Explanatory Research. Data collection uses a questionnaire. The sampling technique uses purposive sampling. The total sample was 400 MSMEs Managers in Pamekasan Regency, and used data analysis, namely Structural Equation Model (SEM) with AMOS software. The results highlighted that Supply Chain Digitalization, Green Supply Chain and Supply Chain Resilience has a direct and significant influence on MSMEs Performance. Moreover, Competitiveness partially mediates the relationship between Supply Chain Digitalization, Green Supply Chain and Supply Chain Resilience and MSMEs Performance. The findings of this study suggest that managers should be made aware that Supply Chain Digitalization, Green Supply Chain, Supply Chain Resilience can be an important driver for Competitiveness which in turn would enhance MSMEs Performance.


Keywords


Supply Chain Digitalization; Green Supply Chain; Supply Chain Resilience; Competitiveness; MSMEs Performance

Full Text:

PDF

References


Abeysekara, N., Wang, H., and Kuruppuarachchi, D. 2019. Effect of Supply Chain Resilience on Firm Performance and Competitive Advantage. A Study of the Sri Lankan Apparel Industry. Business Process Management Journal, 25(7), pp. 1673–1695.

Afraza, M., Bhattia, S., Ferraris, A., and Couturier, J. 2021. The Impact of Supply Chain Innovation on Competitive Advantage in the Construction Industry: Evidence from a Moderated Multimediation Model. Technological Forecasting and Social Change, 120370, pp. 1–12.

Agyabeng-Mensah, Y. and Ahenkorah, E. N. K. 2019. The Intermediary Role of Supply Chain Capability between Supply Chain Integration and Firm Performance. Journal of Supply Chain Management Systems, 8(2), pp. 32–39.

Amar, Z. 2020. Effect of Innovation Capability and Blue Ocean Strategy on Competitive Advantage and Business Performance. Journal of Islamic Economic Business FEBI Institut Dirosat Islamiyah Al-Amien Prenduan, 2(2), pp. 73–100.

Anderson, J. C. 1988. Structural Equation Modeling in Practice: A Review and Recommended Two-step Approach. Psychological Bulletin, 103, pp. 411-423.

Atikah, Z. S. N. 2014. Business Performance for SMEs: Subjective or Objective Measures?. Rev. Integr. Bus. Econ. Res, 3(1), pp. 391–401.

Barbosa-Póvoa, A. 2009. Sustainable Supply Chains. Computer-Aided Chemical Engineering. Brazil, Elsevier, pp. 127–132.

Basana, S., Siagian, H., Ubud, S., and Tarigan, Z. 2022. The Effect of Top Management Commitment on Improving Operational Performance through Green Purchasing and Green Production. Uncertain Supply Chain Management, 10(4), pp. 1479–1492.

Basana, S. R., Suprapto, W., Andreani, F., and Tarigan, Z. 2022. The Impact of Supply Chain Practices on Green Hotel Performance Through Internal, Upstream, and Downstream Integration. Uncertain Supply Chain Management, 10(1), pp. 169–180.

Behl, A. 2022. Antecedents to Firm Performance and Competitiveness Using the Lens of Big Data Analytics: A Cross-Cultural Study. Management Decision, 60(2), pp. 368–398.

Bjorkdahl, J. 2020. Strategies for Digitalization in Manufacturing Firms. California Management Review, 62(4), pp. 17–36.

Cagliyan, V., Attar, M., and Abdul-Kareem, A. 2022. Assessing the Mediating Effect of Sustainable Competitive Advantage on the Relationship between Organizational Innovativeness and Firm Performance. Competitiveness Review: An International Business Journal, 32(4), pp. 618–639.

Çankaya, S. Y. and Sezen, B. 2019. Effects of Green Supply Chain Management Practices on Sustainability Performance. Journal of Manufacturing Technology Management, 30, pp. 98–121.

Chhabra, D., Singh, R. K., and Kumar, V. 2021. Developing IT-Enabled Performance Monitoring System for Green Logistics: A Case Study. International Journal of Productivity and Performance Management, 71(3), pp. 775-789.

Chiu, K. P. L. 2021. Supply Chain 4.0: The Impact of Supply Chain Digitalization and Integration on Firm Performance. Asian Journal of Business Ethics, 10, pp. 371–389.

Chowdhury, M. M. 2016. Supply Chain Readiness, Response and Recovery for Resilience. Supply Chain Manag, 21, pp. 709–731.

Christopher, M. P. H. 2004. Building the Resilient Supply Chain. Int J Logist Manag, 15, pp. 1–14.

Closs, D. J. 2004. Enhancing Security throughout the Supply Chain. IBM Center for the Business of Government.

Das, S. and Canel, C. 2023. Linking Manufacturing and Competitive Strategies for Successful Firm Performance: A Review and Reconceptualization. Journal of Strategy and Management, 16(1), pp. 148-172.

Dian, N. M. 2022. Assessing the Impact of Green Supply Chain Management, Competitive Advantage and Firm Performance in PROPER Companies in Indonesia. Operations and Supply Chain Management, 15(3), pp. 395 – 406.

Dinh, T. N., Kuo, K. C., Lu, W. M., and Nguyen, D. T. 2023. The Effect of Quantitative Easing on Asian Construction Firms’ Performance. International Journal of Construction Management, 23(1), pp. 38–47. DOI: https://doi.org/10.1080/15623599.2020.1846887.

Dong, Z., Tan, Y., Wang, L., Zheng, J., and Hu, S. 2021. Green Supply Chain Management and Clean Technology Innovation: An Empirical Analysis of Multinational Enterprises in China. Journal of Cleaner Production, 310(127377), pp. 1–10.

Fahad, Saddique and Nwagwu, Urenna. 2023. Implementation of Digitalization Supply Chain Helps in Gaining of Competitive Advantages as Mediating Role in the Supply Chain Performance in Construction Organization in Pakistan under the Creative Common Attribution Non-Commercial 4.0. Critical Discourse Studies, 1(1), pp. 14–27.

Fornell, C. and Larcker, D. F. 1981. Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), pp. 39. DOI: https://doi.org/10.2307/3151312.

Ganbold, O., Matsui, Y., and Rotaru, K. 2020. Effect of Information Technology-Enabled Supply Chain Integration on Firm’s Operational Performance. Journal of Enterprise Information Management, 34(3), pp. 948–989.

Gareche, M., Hosseini, S. M., and Taheri, M. 2017. A Comprehensive Literature Review in Competitive Advantages of Businesses. International Journal of Advanced Studies in Humanities and Social Science, 6(4), pp. 312–329.

Gazali, Gazali and Zainurrafiqi. 2023. The Effect of Green Entrepreneur Orientation on Network Resource Acquisition and Small and Medium Enterprises’ Business Performance with Knowledge Transfer and Integration and Green Technology Dynamism as Moderator Variables. Indonesian Interdisciplinary Journal of Sharia Economics, 6(1), pp. 136–153.

Giménez, Cristina and Ventura, Eva. 2005. Logistics-Production, Logistics-Marketing and External Integration: Their Impact on Performance. International Journal of Operations and Production Management, 25. pp. 20-38. DOI: 10.1108/01443570510572222.

Gorbach, G. 2017. The Great Digitization of Industry. Supply Chain Management Review, pp. 24–29.

Hamel, G. 2002. Competing for the Future. Business School Press.

Harsono, H. and Kiswara, G. 2022. The Impact of Digital Supply Chains on Organizational Performance: An Empirical Study in the Defense Industry. Journal of Industrial Engineering and Management Research, 3(6), pp. 80–90.

Hayes, K. J. P. 2004. SPSS and SAS Procedures for Estimating Indirect Effects in Simple Mediation Models. Behavior Research Methods, Instruments, and Computers, 36, pp. 717–731.

Heizer, B., Render, and C. M. 2020. Principles of Operations Management: Sustainability and Supply Chain Management (11th Edition). Pearson Education.

Kang, S. and Na, Y. N. 2020. Effects of Strategy Characteristics for Sustainable Competitive Advantage in Sharing Economy Businesses on Creating Shared Value and Performance. Sustainability, 12(1397), pp. 2–21.

Kaplan, D. 2009. Structural Equation Modeling: Foundations and Extensions (2nd ed). SAGE Publications, Inc.

Kim. 2006. The Effect of Supply Chain Integration on the Alignment between Corporate Competitive Capability and Supply Chain Operational Capability. Int. J. Opera. Prod. Manag., 26(10), pp. 1084–1107.

Kline, R. 2016. Principles and Practice of Structural Equation Modeling (Fourth Edi). The Guilforf Press.

Krajewski, L. J. and Ritzman, L. P. 2010. Operations Management: Process and Supply Chains (9th ed). Pearson.

Kustianti, A. R. and Murwaningsari, E. 2023. The Influence of Green Organizational Culture, Green Supply Chain Management on Company Performance. Journal of Financial and Business Accounting, 16(1), pp. 20–29.

Lee, V. H., Ooi, K. B., Chong, A. Y. L., and Lin, B. 2015. A Structural Analysis of Greening the Supplier, Environmental Performance and Competitive Advantage. Production Planning and Control, 26(2), pp. 116–130.

Legner, C., Eymann, T., Hess, T., Matt, C., Böhmann, T., Drews, P., Mädche, A., Urbach, N., and Ahlemann, F. 2017. Digitalization: Opportunity and Challenge for the Business and Information Systems Engineering Community. Business and Information Systems Engineering, 59(4), pp. 301–308.

Liu, C. L. and Lee, M. 2018. Integration, Supply Chain Resilience, and Service Performance in Third-Party Logistics Providers. The International Journal of Logistics Management, 29(1), pp. 5-21.

Liu, K. P. and Weisheng, C. 2021. Supply Chain 4.0: The Impact of Supply Chain Digitalization and Integration on Firm Performance. Asian Journal of Business Ethics, 10, pp. 371–389.

Magretta, J. 1998. The Power of Virtual Integration: An interview with Dell Computer’s Michael Dell. Harvard Business Review, 76(2), pp. 72–84.

Menike, L. 2019. Effect of Financial Literacy on Firm Performance of Small and Medium Enterprises in Sri Lanka. SSRN Electronic Journal, pp. 1–25.

Nanyang, Zhao and Hong, Jiangtao. 2023. Impact of Supply Chain Digitalization on Supply Chain Resilience and Performance: A Multi-Mediation Model. International Journal of Production Economics, 259, pp. 108817.

Nawawi, I. 2014. Riyadhus Shalihin. In carihadis.com. Pustaka Al-Kautsar.

Nguyen, X. and Le, T. 2020. The Impact of Global Green Supply Chain Management Practices on Performance: The Case of Vietnam. Uncertain Supply Chain Management, 8(3), pp. 523-536.

Nkuda, M. O. 2016. Strategic Agility and Competitive Advantage: Exploration of the Ontological, Epistemological and Theoretical Underpinnings. British Journal of Economics, Management and Trade, 16(1), pp. 1–13.

Novianti, T., Cahyadi, I., Utami, I. D., Anggraeni, N. E., and Sunawan, W. 2022. Supply Chain Management: Engineering Methods. Media Nusa Creative (MNC Publishing).

Novitasari, M. and Tarigan, Z. J. H. 2022. The Role of Green Innovation in the Effect of Corporate Social Responsibility on Firm Performance. Economies, 10(117).

Oh, S. Y. U. and Ryu, H. Y. 2019. Interaction Effects between Supply Chain Capabilities and Information Technology on Firm Performance. Information Technology and Management, 20(2), pp. 91–106.

Pålsson, H. and Kovács, G. 2014. Reducing Transportation Emissions: A Reaction to Stakeholder Pressure or a Strategy to Increase Competitive Advantage. International Journal of Physical Distribution and Logistics Management, 44(4), pp. 283–304.

Pellondou, D. C. and Santosa, W. 2022. The Influence of Supply Chain Integration Capabilities on Sustainability Performance with Green Supply Chain Management. Innovation, 18(4), pp. 717-728.

Peng, R. G. and Schroeder, R. S. 2011. Competitive Priorities, Plant Improvement and Innovation Capabilities, and Operational Performance: A Test of Two Forms of Fit. J. Opera. Prod. Manag, 31(5), pp. 484–510.

Pettit, T. J. and Fiksel, J. C. K. 2010. Ensuring Supply Chain Resilience: Development of a Conceptual Framework. J. Bus. Logist, 31, pp. 1–21.

Ploenhad, J. 2019. Mediating Role of Competitive Advantage on the Relationship of Supply Chain Management and Organizational Performance on the Food Industry of Thailand. International Journal of Supply Chain Management, 8(4), pp. 216–226.

Pu, Guoli. 2023. Effect of Supply Chain Resilience on Irm’s Sustainable Competitive Advantage: A Dynamic Capability Perspective. Environmental Science and Pollution Research, 30, pp. 4881–4898.

Ricardianto, P., Lembang, A., Tatiana, Y., Ruminda, M., Kholdun, A., Kusuma, I., and Endri, E. 2023. Enterprise Risk Management and Business Strategy on Firm Performance: The Role of Mediating Competitive Advantage. Uncertain Supply Chain Management, 11(1), pp. 249–260.

Richey, H., Chen, R., Upreti, S. E., and Fawcett, F. A. 2009. The Moderating Role of Barriers on the Relationship between Drivers to Supply Chain Integration and Firm Performance. Int. J Phys. District. Logistics, 39(10), pp. 826–840.

Rozudin, M. and Mahbubah, N. 2021. Implementation of the House of Risk Method in Green Supply Chain Risk Management for Bogie S2hd9c Products (Case Study: PT Barata Indonesia). JISI: Journal of Industrial System Integration, 8(11), pp. 1–11.

Safkaur, H. L. 2019. Impact of Business Strategy on the Management Accounting: The Case of the Production of State-Owned Enterprises in Indonesia, South Sumatra. Journal of Asian Business Strategy, 9(1), pp. 29–39.

Sanders, N. and Swink, M. 2020. Digital Supply Chain Transformation: Visualizing the Possibilities. Logistics Management (2002), 59(3), pp. 42–48.

Schumacker, R. E. and Lomax, R. 2004. A Beginner’s Guide to Structural Equation Modeling (Second edition). Lawrence Erlbaum Associates.

Siagian, H., Tarigan, Z. J. H., and Basana, R. 2022. The Role of Top Management Commitment in Enhancing Competitive Advantage: The Mediating Role of Green Innovation, Supplier and Customer Integration. Uncertain Supply Chain Management, 10(2), pp. 477–494.

Siagian, H., Tarigan, Z. J. H., and Jie, F. 2021. Supply Chain Integration Enables Resilience, Flexibility, and Innovation to Improve Business Performance in the COVID-19 Era. Sustainability, 13(4669).

Singh, A. P. S. K. J. K. D. P. A. K. 2017. Productivity, Quality and Business Performance: An Empirical Study. International Journal of Productivity and Performance Management, 66(1), pp. 78 – 91.

Sri, H. N. H. 2020. The Influence of Supply-Chain Resilience on Competitive Advantage and Firm Performance. International Journal of Supply Chain Management, 9(4), pp. 440–446.

Srivastava, S. K. 2007. Green Supply-Chain Management: A State-of-the-Art Literature Review. International Journal of Management Reviews, 9(1), pp. 53–80.

Tarigan, Z. J. H., Basana, S. R., and Suprapto, W. 2018. Enterprise Resources Planning Project Manager Competency on Improving Organizational Performance through Process Design and Quality Performance. ICEBT 2018: Proceedings of the 2nd International Conference on E-Education, E-Business and E-Technology, pp. 153–157.

Tarigan, Z. J. H., Siagian, H., Basana, S. R., and Jie, F. 2019. Effect of Key User Empowerment, Purchasing Strategy, Process Integration, Production System to Operational Performance. E3S Web of Conferences, 130, pp. 01042.

Varanavicius, V. and Navikaite, A. 2016. The Link between Competitive Advantage and Environmental Sustainability. Journal of Economics and Finance, 7(6), pp. 2321–5925.

Walker, H., Di Sisto, L., and McBain, D. 2008. Drivers and Barriers to Environmental Supply Chain Management Practices: Lessons from the Public and Private Sectors. Journal of Purchasing and Supply Management, 14(1), pp. 69-85.

Wang, J. X. 2018. The Impact of Green Supply Chain Management Practices on Competitive Advantages and Firm Performance. Environmental Sustainability in Asian Logistics and Supply Chains, pp. 121–134.

Wu, K. J., Tseng, M. L., Chiu, A. S. F., and Lim, M. K. 2017. Achieving Competitive Advantage through Supply Chain Agility Under Uncertainty: A Novel Multi-Criteria Decision-Making Structure. International Journal of Production Economics, 190, pp. 96–107.

Xi, M., Fang, W., and Feng, T. 2022. Green Intellectual Capital and Green Supply Chain Integration: The Mediating Role of Supply Chain Transformational Leadership. Journal of Intellectual Capital, Production Planning and Control, 26(12), pp. 100-130.

Xu, J., Yu, Y., Wu, Y., Zhang, J. Z., Liu, Y., Cao, Y., and Eachempati, P. 2022. Green Supply Chain Management for Operational Performance: Anteceding Impact of Corporate Social Responsibility and Moderating Effects of Relational Capital. Journal of Enterprise Information Management, The International Journal of Logistics Management, 29(1), pp. 22–34.

Yildiz-Çankaya, S. and Sezen, B. 2019. Effects of Green Supply Chain Management Practices on Sustainability Performance. Journal of Manufacturing Technology Management, 30(1), pp. 98-121.

Yu, Y., Huo, B., and Zhang, Z. 2021. Impact of Information Technology on Supply Chain Integration and Company Performance: Evidence from Cross-Border E-Commerce Companies in China. Journal of Enterprise Information Management, 34(1), pp. 460-489.

Zadeh, A., Ramayah, T., Hanifah, H., Kurnia, S., and Mahmud, I. 2020. Supply Chain Information Integration and Its Impact on the Operational Performance of Manufacturing Firms in Malaysia. Information and Management, 57(8).

Zainurrafiqi, Rachmawati, R., Putri, D. L. P., Resdiana, E., Widyastuti, E., Asy’ari, Q., and Rusdiyanto, W. H. 2020a. The Determinants and Consequents of Competitive Advantage Based on Local Wisdom at the Micro, Small, and Medium Enterprise: Evidence from Indonesia. Solid State Technology, 63(6), pp. 1604–1620.

Zainurrafiqi, Zainurrafiqi. 2018. Revisiting the Role of Antecedents of Micro, Small and Medium Enterprises (MSME) Performance and Democratic Variables Using the Variance Analysis Method. Economics Journal of Economics, 11(1), pp. 1-65.

Zainurrafiqi and Hidayati, Nurul. 2021. Pengaruh Financial Literacy terhadap Financial Behavior dan Firm Performance dengan Religiosity sebagai Variabel Moderasi (Survey pada Usaha Mikro Kecil Menengah di Madura). Public Corner, 16(2), pp. 100–118.

Zainurrafiqi, Z., Gazali, Nuzulul, Q., and Nurul, H. 2020b. The Effect of Organization Learning Capability and Organizational Innovation on Competitive Advantage and Business Performance. Russian Journal of Agricultural and Socio-Economic Sciences, 3, pp. 9-17. DOI: 10.18551/rjoas.2020-03.02.

Zhen, J., Xie, Z., and Dong, K. 2021. Impact of IT Governance Mechanisms on Organizational Agility and the Role of Top Management Support and IT Ambidexterity. International Journal of Accounting Information Systems, 40, pp. 1-15. DOI: https://doi.org/10.1016/j.accinf.2021.100501.

Zhou, J., Hu, L., Yu, Y., Zhang, J. Z., and Zheng, L. 2022. Impacts of IT Capability and Supply Chain Collaboration on Supply Chain Resilience: Empirical Evidence from China in the COVID-19 Pandemic. Journal of Enterprise Information Management, 35(4), pp. 120-138.




DOI: http://dx.doi.org/10.21776/ub.jam.2024.022.01.14

Refbacks

  • There are currently no refbacks.