THE INFLUENCE OF TRUST AND TECHNOLOGY ON
OPERATIONAL PERFORMANCE WITH SUPPLY CHAIN
COLLABORATION AS AN INTERVENING VARIABLE
ARIZONA STATE UNIVERSITY
SCM 502 - OPERATIONS AND SUPPLY CHAIN MANAGEMENT
SPRING 2024
Introduction
Today, manufacturing companies are under pressure to deliver high-quality, low-priced
products at short notice and under the most unpredictable economic situations. This makes
every company continue to look for innovative approaches to create a sustainable competitive
advantage in competitive conditions such as cost reduction and customer service
improvement. One such approach is supply chain collaboration (Salam, 2017). According to
Fawcett, Wallin, Allred, Fawcett, & Magnan (2011) supply chain collaboration is a vital
dynamic capability that can deliver differential performance. Supply chain collaboration has
been identified as one of the changing trends in the future use of supply chains (Salam, 2017).
Supply chain collaboration has become a force that stimulates the ability of companies
in their supply chain to build global reach, secure the company's strategic position in the
supply chain, focus on development and improve financial performance (Fawcett et al., 2011).
Very few companies have all the resources and capabilities needed to compete on a global
scale and supply chain competitiveness will depend on access to non-marketable capabilities
through collaboration (Salam, 2017).
Autry, Rose, & Bell (2014) argue that collaboration is the purposeful use of cooperation
and sustaining business exchange relationships. To date, experts have focused on researching
supply chain collaboration (Fawcett et al., 2011), supply chain collaboration levels and
performance outcomes (Zacharia, Nix, & Lusch, 2009), buyer-supplier collaboration in
product development (Hoegl & Wagner, 2005), information technology as a cause of supply
chain collaboration (Fawcett et al., 2011) and implementation models for supply chain
collaboration (Fawcett, Magnan, & McCarter, 2008). In addition, experts agree on the benefits
of collaboration when companies work together effectively, they can achieve significant
results through coordinated supply chain activities (Frankel, Goldsby, & Whipple, 2002).
Although trust has been identified as a key enabler of supply chain collaboration by Fawcett
et al (2011), understanding of the drivers of successful collaboration is limited. Yet a
company's ability to build collaboration and to accommodate the challenges of maintaining
collaborative relationships is critical to its competitiveness and long-term success (Salam,
2017).
Supply chain collaboration can be shaped by trust and technology. The collaboration of
two or more companies can be successful if it is based on trust (Salam, 2017). Stefani &
Sunardi (2014) revealed that when trust is present, supply chain members will try to overcome
differences for the benefit of all members. Supply chain management is built on the basis of
trust. Lack of mutual trust is a fatal factor that can dissolve partnerships in the supply chain.
Besides trust, information is one of the most important aspects of supply chain
management. Information technology support allows management to make business decisions
quickly and accurately. Advances in information and communication technology, including
electronic data interchange (EDI), and the internet are important tools in handling the
complex relationship between suppliers and buyers. The complexity of supply chain
management forces companies to use online communication systems. Given the important
role of information in supporting supply chain performance, managers must understand how
information is collected and analyzed (Munizu, 2017).
Through high and appropriate trust, modern and up to date information technology will
form a strong supply chain collaboration, thereby ultimately improving the operational
performance of companies in Indonesia. Companies today have basically understood and
realized the importance of improving operational performance and have had a high value in
terms of the company's operational performance. However, companies must realize that this is
not enough, in an era that is increasingly developing and constantly changing as it is today,
companies need to improve their operational performance, it is not enough just to be high but
how to get a higher value on the company's operational performance.
This study refers to Salam's (2017) research examining the effect of trust and
technology on supply chain collaboration and operational performance. This study uses senior
managers and executive managers from FMGC companies consisting of local and
multinational companies in Thailand. The sample of this study amounted to 181 companies.
Data analysis using SEM AMOS. The results of the study are trust has a positive effect on
supply chain collaboration, technology has a positive effect on supply chain collaboration,
and supply chain collaboration trust has a positive effect on company operational
performance.
LITERATURE REVIEW AND THEORETICAL BASIS
2.1 Previous Research
Salam's (2017) research examines the influence of trust and technology on supply chain
collaboration and operational performance. This study used senior managers and executive
managers from FMGC companies consisting of local and multinational companies in
Thailand. The sample of this study amounted to 181 companies. Data analysis using SEM
AMOS. The results of the study are trust has a positive effect on supply chain collaboration,
technology has a positive effect on supply chain collaboration, and supply chain collaboration
trust has a positive effect on company operational performance.
Munizu's research (2017) examines the variables of trust in supply chain performance,
the effect of trust on commitment, the effect of commitment on supply chain performance, the
effect of information technology on supply chain performance, and the effect of trust
variables on supply chain performance through commitment in the passion fruit processing
Small and Medium Industry (SMI) in Makassar. This research uses a quantitative approach,
where the questionnaire is the main data collection tool. Data were analyzed using descriptive
analysis, and partial least square-path modeling (PLS- PM). Data computation uses the help of
SmartPLS 2.0 software. The results showed that the trust variable had a positive and
significant effect on supply chain performance. Trust also has a positive effect and significant
on commitment. Commitment has a positive and significant effect on supply chain
performance. Information technology has a positive and significant effect on supply chain
performance. Trust variables have a positive and significant effect on supply chain
performance through commitment. Trust has a smaller direct effect on supply chain
performance compared to the indirect effect, which is mediated by commitment. Supply chain
performance is more influenced by information technology than trust and commitment. The
results of this study can have implications for the importance of the role of management to
consistently maintain trust, commitment and the use of information technology in the supply
chain system.
Stefani & Sunardi's (2014) research aims to identify social psychological factors that
can influence collaborative relationships in a supply chain, in the context of medium-scale
food processing businesses. The practice of supply chain collaboration and the impact of its
implementation on company performance, both operational and financial, were also
examined. Based on these objectives, a 'survey approach within a case study' was used. Data
were collected from a medium-sized food processing company. A partial least squares-path
model was proposed to conceptualize and measure the effects of dependency, commitment,
trust and communication on supply chain collaboration. The effects of supply chain
collaboration on firm performance were also measured. Using the buyer's point of view, the
results revealed that commitment and trust have a positive effect on supply chain
collaboration, and supply chain collaboration has a positive effect on firm performance on
company performance. Meanwhile, dependence affects collaboration indirectly through
commitment, and communication affects collaboration indirectly through trust.
2.2 Foundation Theory
2.2.1 Trust
Trust is the willingness to take risks (and the willingness to rely on an exchange partner
in whom one has confidence). Trust refers to the extent to which supply chain partners regard
each other as credible and benevolent partners (Salam, 2017). Trust is defined as an attitude
that one party's needs will be met in the future by the actions of the other party (Dash &
Bruning, 2007). Trust is mentioned in various cooperative relationship studies as a variable
determining the success and quality of long-term relationships (Jonsson & Zineldin, 2003).
Even in managing supply chains, trust is crucial for an effective and efficient supply chain
(Heizer & Render, 2004).
Trust is the foundation of business. Building trust in long-term relationships with
customers is an important factor in creating customer loyalty. This trust is not simply
recognized by other parties/business partners, but must be built from the start and can be
proven. Trust is a form of excellence in committing to a cooperative organizational
relationship arises from a belief that the cooperative relationship will provide benefits as
expected by both parties, measured by indicators of open communication, sharing important
information, honesty, responsibility, and experience (Mukhsin, 2017). Success in company
performance (operation performance) in the supply chain also comes from the high value of
trust and strong commitment between partners in the supply chain. In a supply chain system,
the partnership process is defined as the interaction between commitment, trust and
collaboration between companies (Kwon & Suh, 2004).
2.2.2 Technology
Information technology is the means and infrastructure (hardware, software, useware)
systems and methods to obtain, transmit, process, interpret, store, organize, and use data
meaningfully (Warsita, 2008). Information technology is defined as science in the field of
computer-based information and its development is very rapid. Information technology is a
technology used to process data. Processing includes processing, obtaining, compiling,
storing, manipulating data in various ways to produce quality information, namely
information that is relevant, accurate, and timely (Uno & Lamatenggo, 2011). Proven
technological infrastructure generally facilitates the development of stable and close
relationships among channel partners (Salam, 2017).
For supply chain relationships to achieve collaboration, electronic mechanisms must
also be in place so that information can be easily exchanged between partners. One such
mechanism is technology for information sharing. Information technology has played an
important role in enabling supply chain collaboration based on elements such as electronic
data interchange (EDI), internet and so on. IT has also been shown to support exchanges
among trading partners (Pramatari, 2007). In general, IT has been widely recognized as an
important factor in the supply chain because of the contribution it can make in improving the
performance of both individual companies and the supply chain as a whole. (Salam, 2017)
2.2.3 Supply Chain Collaboration
Collaboration, in the context of supply chains is to share common constraints, share
intelligence commitment, share trust and mutual respect, share skills and knowledge and
intellectual agility. This collaboration provides benefits to each member in the supply chain
(Barratt, 2004). Supply chain collaboration is defined as a long-term relationship in which
actors commonly enter into working relationships, share information and jointly plan and
even modify their business practices to improve joint performance (Whipple, Lynch, &
Nyaga, 2010). For collaborative relationships to be successful, it is important that partners
work together to plan and modify their business practices to improve joint performance (Whipple,
Lynch, & Nyaga, 2010) coordinate activities, as well as solve problems (Salam, 2017). (Min et
al., 2005) found that joint efforts, such as planning, goal setting, performance measurement
and problem solving, are essential for successful collaborative relationships and are closely
related to information sharing.
2.2.4 Operational Performance
Performance appraisal is one way that management can fulfill its obligations to funders
and also to achieve the goals set by the company. Performance is a general term used for part
or all of the actions or activities of an organization in a period with reference to a standard
amount such as past or projected costs, on the basis of efficiency, responsibility or
management accountability and the like (Srimindarti, 2004).
The company's operational performance into 5 dimensions, namely (Lenny Koh,
Demirbag, Bayraktar, Tatoglu, & Zaim, 2007):
a) Flexibility
Flexibility is the ability of a company to adapt to changes in the business environment.
Adaptation of "multi-supplier" practices can increase flexibility resulting in alternative
sources for procurement by reducing supply chain risks. Establishing long-term partnerships
with suppliers and customers also helps to improve flexibility supply chain flexibility by
creating mutual understanding among suppliers, companies, and customers
b) Production Lead Time Reduction
One way to reduce production lead time is e-procurement, single sourcing and just in time.
Reducing the production lead time will improve the company's SCM response and ultimately
increase the company's competitive advantage (Koh et.al, 2007).
c) Forecasting
Forecasting is a very important dimension in SCM performance. Forecasting is the combined
performance of a combination of resources such as material supply, manufacturing,
production planning and customer demand prediction (Koh et.al, 2007).
d) Resource Planning and Cost Savings
With proper strategic planning, it can be anticipated that resource utilization will be optimized
leading to cost savings. For example, reducing production cycle time can be realized through
reducing production time and or eliminating non-value-added activities. With short cycle
times, more orders can be processed, which will then result in increased efficiency and
reduced production costs per unit. In addition, the use of e-procurement tools can also shorten
lead order times and reduce order costs.
e) Inventory Level Reduction
These SCM practices will not only reduce inventory levels, but will also reduce warehouse
utilization and improve cash flow.
2.3 Hypothesis Research
2.3.1 The Effect of Trust on Supply Chain Collaboration
One of the most important things for each company to have in a supply chain network is
trust between organizations. Trust as a belief that will provide positive results for the
organization. Trust as a positive belief or expectation obtained through exchanges with
partners in a supply chain system. Success in company performance (operation performance)
in the supply chain also comes from the high value of trust and strong commitment between
partners in the supply chain. In a supply chain system, the partnership process is defined as
the interaction between commitment, trust and collaboration between companies. A high level
of collaboration, both with suppliers and customers, leads to improved performance. Good
relationships with partners are built on trust. Success through cooperation is achieved through
improved company performance based on good relationships (Munizu, 2017).
2.3.2 The Effect of Information Technology on Supply Chain Collaboration
Supply chain management emphasizes benefits for all involved in the supply chain and
long-term benefits for all parties involved in the supply chain through cooperation and
information sharing. This signifies the importance of communication and IT (Information
Technology) applications in SCM. Information sharing between members in the supply chain
using information technology should be improved to reduce uncertainty and improve supplier
performance in terms of raw material delivery and ultimately increase the competitive
advantage of the supply chain.
Many researchers have emphasized the impact of IT in SCM performance, and have
mentioned that SCM competitive advantage can be achieved by adopting IT. Companies are
now focusing on strategic planning with the aim of long-term planning and changing the
organization to increase competitive value. Strategic planning requires top management
involvement. Information technology strategic planning should support the company's
flexibility and responsiveness to changing market needs. Information technology facilitates
the formation of fast partnerships by providing the right information. If the company wants to
move towards an enterprise resource planning (ERP) system, it may have to restructure the
organization. Other implications are the need for IT investment, business process engineering,
market orientation, employee relations, and workforce characteristics. The strategic role of
manufacturing information systems includes minimizing the negative potential of the
company, balancing with competitors, supporting business strategies and supporting
manufacturing-based competitive value. Some of the reasons for using information
technology in SCM are: marketing, economic, organizational, technology (Suhari, 2016).
Salam's research results (2017) prove that information technology has a positive effect
on supply chain collaboration. Based on the description above, the hypothesis of this study is:
H2: information technology has a positive effect on supply chain collaboration
2.3.3 The Effect of Trust on Operational Performance
Trust is defined as an attitude that one party's needs will be met in the future by the
actions of the other party. Trust is mentioned in many cooperative relationship studies as a
variable that determines the success and quality of long-term relationships. Even in managing
supply chains, trust is critical to an effective and efficient supply chain. Trust is increasingly
important in inter-organizational relationships. Without trust, a relationship between client
and supplier never works to maximize its potential strength. Trust is described as a
willingness to take risks, and trust will arise if a group trusts each other and integrates in
interacting with other partners (Kwon & Suh, 2004).
2.3.4 The Effect of Information Technology on Operational Performance
Information technology greatly affects the development of economics, business,
technology and information which causes increasingly intense competition in every type of
business. To face today's economic competition, policy making in companies is required to
always be effective and efficient to maintain the survival of the company. Information
technology can be used effectively so that it can contribute to performance, so members in the
organization must use this technology properly (Tripathy, Aich, Chakraborty, & Lee, 2016).
2.3.5 The Effect of Supply Chain Collaboration on Operational Performance
Companies with good supply chain practices in the sense of being able to implement
partnership relationships with suppliers and customers, just in time demand, have various
strategic plans, use supply chain strategies and safety stock storage strategies, have e-
proucement, work w i t h several suppliers, use contract employees, sub-contract with other
companies, work with third parties as logistics providers, and have many suppliers will be
able to improve their company's SCM performance.
In some studies of company performance using financial performance and non-financial
criteria. According to Rahadi (2012), companies in implementing Supply Chain Management
(SCM), aim to increase competitiveness which is realized in improving operational
performance. Information sharing is an important element in supply chain management,
because the sharing of transparent and accurate information can accelerate the supply chain
process from suppliers to the market or to the hands of consumers. Long term relationship can
be created with a continuous relationship between all parties involved in supply chain
management, and with good cooperation and mutual benefit it can be done. Furthermore, no
less important is the integrated process (Process Integration) of the overall incorporation of
all activities in supply chain management so that all activities run smoothly (Rachbini, 2016).
The short-term goal of SCM is basically to increase productivity and reduce inventory and
time management, while the long-term goal is to increase market share and supply chain
integration for all supply chain members (Li et al, 2006). The results of Koh et.al's research
(2007) which found the results that Supply Chain Management Practices have a significant
positive effect on SCM Performance.
2.3.6 The Effect of Supply Chain Collaboration on Mediating the Relationship
between Trust and Operational Performance
Trust between organizations can help improve supply chain performance in several
ways, namely: First, information sharing is often implemented to help improve performance
(information sharing). Then a shared vision, mission and strategy are often pursued in
achieving common goals (incentive alignment). Then coordinate decision making in
production and distribution (joint decision making). Furthermore, in terms of increasing the
productivity of the supply chain as a whole, parts of the supply chain often do joint
forecasting. This element is related to the performance improvement that occurs due to trust
between organizations. From several theoretical points of view above, it can be concluded that
collaborating in the supply chain or in the context of improving performance, trust between
organizations absolutely must be applied in every interaction in the supply chain (Yaqoub,
2011).
2.3.7 The Effect of Supply Chain Collaboration Mediating the Relationship of
Information Technology to Operational Performance
The use of information systems in the field of inventory management is recognized as
being able to improve the company's logistics performance. Inventory that involves very
many types of goods requires data accuracy and data novelty. This is required by decision
makers in inventory planning and control. As understood, supply chain management is the
management of information flow from upstream to downstream. Accuracy of information will
ensure the right decision. The complexity of inventory problems increases when the
subjective involvement of decision makers or known as intervention becomes part of
d e c i s i o n making. The role of computer technology is very helpful to overcome various
types of problems in inventory management from a logistics perspective. IT helps share
forward and backward logistics information with suppliers. Integration of IT with logistics
helps achieve competitive advantage. Integration helps to get information at every stage of the
supply chain and hence optimize logistics costs or transportation costs. A high level of
logistics integrity with suppliers and customers leads to superior business performance
(Tripathy et.al, 2014). Companies with good operational performance in the sense of being
able to implement flexibility in various ways, reduction of production lead time, production
forecasting, planning Source resources natural and savings cost savings and reduced inventory
levels will be able to improve their company's SCM performance. increase their sales. Based
on the description above, the hypothesis of this study is:
H7: supply chain collaboration mediates the relationship between information technology
and operational performance.
Operational Definition of Variables Research
1.1.1.1 Trust
Trust refers to the extent to which supply chain partners regard each other as credible
and benevolent partners (Salam, 2017). The indicators of trust used in this study are as
follows (Salam, 2017):
1. Trust in suppliers
2. Trust in suppliers who look after the company's interests
3. Suppliers believe in the success of the company
4. Supplier care
5. Supplier support
6. Supplier reliability
1.1.1.2 Technology
Information technology is a means and infrastructure (hardware, software, useware)
systems and methods to obtain, transmit, process, interpret, store, organize, and use data
meaningfully (Warsita, 2008). The indicators of the technology used in this study are as
follows (Salam, 2017):
a. The importance of technology in a business relationship
b. The company is electronically connected
c. Information system integration
d. Communication between companies using the internet
e. Technology success
1.1.2 Mediating Variable
1.1.2.1 Supply Chain Collaboration
Collaboration, in the context of supply chains is about sharing common constraints,
sharing intelligence commitment, sharing trust and mutual respect, sharing skills and
knowledge and intellectual agility. (Barratt, 2004). The indicators of supply chain
collaboration used in this study are as follows (Salam, 2017):
1. The company conducts a resource sharing process to improve supplier capabilities
2. Strategic goal development is done jointly with suppliers
3. Supplier performance monitoring
4. Cooperative relationship arrangements related to "rewards"and risk
5. Shared sharing of added value with suppliers
1.1.3 Dependent Variable
1.1.3.1 Operational Performance
Performance appraisal is one way that management can fulfill its obligations to funders
and also to achieve the goals set by the company. Performance is a general term used for part
or all of the actions or activities of an organization in a period with reference to a standard
amount such as past or projected costs, on the basis of efficiency, responsibility or
management accountability and the like (Srimindarti, 2004). The indicators of operational
performance used in this study are as follows (Lenny Koh et al., 2007):
a) Flexibility
b) Production Lead Time Reduction
c) Forecasting
d) Resource Planning and Cost Savings
e) Inventory Level Reduction
Instrument Test Research
Validity Test
The validity test is used to determine whether a questionnaire is valid or not. A
questionnaire is said to be valid if the questions on the questionnaire are able to reveal what
will be measured. The significance test is carried out by comparing the significance with the
research error rate, if sig < α (0.05) and r count is positive, then the variable is valid, while if
sig > α (0.05), then the variable is invalid (Ghozali, 2016).
Reliability Test
Reliability test is used to determine the level of stability and consistency of the
measuring instrument used to measure the concept of bias can be minimized (Sekaran &
Bougie, 2013). A questionnaire is said to be reliable or reliable if someone's answer to a
statement is consistent or stable over time. The indicator for the reliability test is Cronbach
Alpha, if the Cronbach Alpha value> 0.60 indicates that the instrument used is reliable. The
steps of testing the reliability test are as follows:
1) Formulate a working hypothesis Ho = the questionnaire is not reliable. Ha = the
questionnaire is reliable.
2) Calculating the price of Cronbach's Alpha statistic.
3) Determining the Cronbach Alpha standard of 0.60.
4) Testing Decision
a) If the resulting Cronbach's Alpha price is less than 0.60, then Ho is accepted,
meaning that the questionnaire is not reliable.
b) If the resulting Cronbach's Alpha price is more than 0.60, then Ho is rejected,
meaning that the questionnaire is reliable.
1.2 Analysis Data
The research model will be analyzed using the Structural Equation Model (SEM), with
the help of AMOS software. SEM is an analytical technique that allows complex and
complicated relationships simultaneously. In a simple sense, SEM provides an adequate and
most efficient estimation technique for a series of multiple and separate regression equations
and is estimated simultaneously (Ghozali, 2016).
(Hair et al., 2010) explains the seven steps of the data analysis process with SEM in
full as follows:
Step 1: Develop a theoretically based model
A model is a simplification of a complex problem for easy analysis. The model is built
based on relevant literature and the results of previous studies.
Step 2: Construct a path diagram
The model that has been built is then depicted in the form of a path diagram. At this
stage the research defines and establishes exogeneous and endogeneous constructs and then
connects them in the form of a path diagram. With this path diagram, it will be clear which
parts must be carried out conformatory tests, namely testing whether indicators can explain
latent variables and which parts must be hypothesized, namely testing the effect of all
exogenous variables on endogenous variables both directly and indirectly, and testing the
effect of endogenous on other endogenous variables.
Step 3: Convert flowchart into equation form
At this stage, researchers describe the flowchart of the research model in the form of
structural equations and measurement model specification equations.
Step 4: Selecting input matrix and model estimation
Because in this study what is tested is causality, the input used is covariance. The steps
of using inputs in SEM are as follows:
1. Measurement model estimation (confirmatory factor)
This measurement model is to test whether the indicators can significantly measure the latent
variables in the model.
2. Path analysis estimation
At this stage, we test the direct and indirect effects of exogenous variables on endogenous
variables and the effects of endogenous variables with other endogenous variables.
Step 5: Forecasting model identification
This stage is to assess whether the structural model created is able to produce good estimates.
Signs of problems in this stage are:
1. The standard deviation for one or more model coefficients is very large.
2. The required information cannot be presented by the program.
3. The appearance of unnatural numbers. For example, there is a negative variance.
4. There is a very high correlation coefficient between the estimation coefficients.
Step 6: Evaluating the accuracy of model estimation
Model estimation can be tested if several assumptions of SEM use can be met. Things
that need to be seen are: sample size of at least 100 units; nomally distributed and linearly
patterned data; evaluation of outliers with univariate and multivariate methods. If the
assumptions of SEM can be met, then the next step is to conduct a goodness of fit test.
Step 7: Interpret and modify the model
The last step in the series of steps above is to interpret and modify the model if it turns
out that the resulting estimate does not have the expected level of prediction or has a high
level of residuals. In summary, the guidelines for modeling goodness of fit criteria (goodness
of fit index) are as follows:
Table 3.1 Goodness of Fit Index
Goodness of Fit
Cut-off value
Chi-Square (X )2
Expectedly small
Significance Probability
≥ 0,05
RMSEA
≤ 0,08
GFI
≥ 0.90
AGFI
≥ 0.90
CMN/DF
≤ 2,00
TLI
≥ 0,95
CFI
≥ 0.95
DATA ANALYSIS AND DISCUSSION
After conducting research on 200 manufacturing companies, data analysis and discussion
are then carried out. The sequence of data analysis is a data quality test consisting of validity
and reliability tests, descriptive analysis of respondent characteristics and respondent answers,
and path analysis as well as hypothesis testing and discussion of research results.
4.1 Analysis Descriptive
This descriptive analysis includes analyzing the characteristics of respondents and
analyzing respondents' answers to research variables.
4.1.1 Description of Research Respondents
Primary data that has been successfully collected by researchers is then analyzed.
Analysis of respondent characteristics includes type of business, age of the company, working
capital and number of employees.
a. Characteristics of Respondents Based on Type of Business
The results of the characteristics of respondents based on the type of business can be
seen in table 4.1, below:
Table 4.1 Characteristics of Respondents Based on Type of Business
Business Type
Total
Percentage
Industrial and Chemical Sector
64
32%
Various Industries
80
40%
Consumer Goods Industry
56
23%
Miscellaneous
0
0%
Total
200
100%
Based on table 4.3, it can be seen that the majority of respondents who filled out the
questionnaire were manufacturing companies in various industrial sectors, totaling 80
respondents or 40%, respondents in industrial and chemical sector companies amounted to 64
respondents or 32%, and respondents in goods and consumption companies amounted to 56
respondents or 23 people.
b. Characteristics of Respondents Based on Company Age
The results of the description of respondents based on the age of the company can be
seen in table 4.2:
Table 4.2
Characteristics of Respondents Based on Company Age
Company Age
Total
Percentage
0-4 years
26
13%
5-10 years
72
36%
> 10 years
102
51%
Total
200
100%
Source: Primary Data, 2018
By looking at the age of the company, it can be seen that the majority of companies
have an age of> 10 years amounting to 102 respondents or 51%. Furthermore, in a row are
companies with an age of 5-10 years amounting to 72 respondents or 36% and companies
with an age of 0-4 years amounting to 26 respondents or 13%.
4.1.2 The Effect of Information Technology on Supply Chain Collaboration
The results prove that information technology has a positive effect on supply chain
collaboration. This means that the better information technology will increase supply chain
collaboration.
Supply chain management emphasizes benefits for all involved in the supply chain and
long-term benefits for all parties involved in the supply chain through cooperation and
information sharing. This signifies the importance of communication and IT (Information
Technology) applications in SCM. Information sharing between members in the supply chain
using information technology should be improved to reduce uncertainty and improve supplier
performance in terms of raw material delivery and ultimately increase the competitive
advantage of the supply chain.
Many researchers have emphasized the impact of IT in SCM performance, and have
mentioned that SCM competitive advantage can be achieved by adopting IT. Companies are
now focusing on strategic planning with the aim of long-term planning and changing the
organization to increase value. Competitive. Strategic planning requires top management
involvement. Information technology strategic planning should support the company's
flexibility and responsiveness to changing market needs. Information technology facilitates
rapid partnership formation by providing the right information. If the company wants to move
towards an enterprise resource planning (ERP) system, it may have to restructure the
organization. Other implications are the need for IT investment, business process engineering,
market orientation, employee relations, and workforce characteristics. The strategic role of
manufacturing information systems includes minimizing the negative potential of the
company, balancing with competitors, supporting business strategies and supporting
manufacturing-based competitive value. Some of the reasons for using information
technology in SCM are: marketing, economic, organizational, technology (Suhari, 2016).
These results are in accordance with Salam's research (2017) proving that information
technology has a positive effect on supply chain collaboration.
4.1.3 The Effect of Trust on Operational Performance
The results prove that trust has a positive effect on operational performance. This means
that the better the trust will improve operational performance.
Trust is defined as an attitude that one party's needs will be met in the future by the
actions of the other party. Trust is mentioned in many cooperative relationship studies as a
variable that determines the success and quality of long-term relationships length. Even in
managing a supply chain, trust is critical to an effective and efficient supply chain. Trust is
increasingly important in inter-organizational relationships. Without trust, a relationship
between client and supplier never works to maximize its potential power. Trust is described as
a willingness to take risks, and trust will arise if a group trusts each other and integrates in
interacting with other partners (Kwon & Suh, 2004).
These results are in accordance with research (Yaqoub, 2011) which proves that trust
has a positive effect on operational performance.
4.1.4 The Effect of Information Technology on Operational Performance
The results prove that information technology has a positive effect on operational
performance. This means that the better information technology will improve operational
performance.
Information technology greatly affects the development of economics, business,
technology and information which causes increasingly intense competition in every type of
business. To face today's economic competition, policy making in companies is required to
always be effective and efficient to maintain the survival of the company. Information
technology can be used effectively so that it can contribute to performance, so members in the
organization must use this technology properly (Tripathy et al., 2016).
These results are in accordance with research (Tripathy et al., 2016) proving that
information technology has a positive effect on operational effectiveness.
4.1.5 The Effect of Supply Chain Collaboration on Operational Performance
The results prove that supply chain collaboration has a positive effect on operational
performance. This means that the better the supply chain collaboration will improve
operational performance.
Companies with good supply chain practices in the sense of being able to implement
partnership relationships with suppliers and customers, just in time demand, have various
strategic plans, use supply chain strategies and safety stock storage strategies, have e-
proucement, work w i t h several suppliers, use contract employees, sub-contract with other
companies, work with third parties as logistics providers, and have many suppliers will be
able to improve their company's SCM performance.
In some studies of company performance using financial performance and non-financial
criteria. According to Rahadi (2012), companies in implementing Supply Chain Management
(SCM), aim to increase competitiveness which is realized in improving operational
performance. Information sharing is an important element in supply chain management,
because the sharing of transparent and accurate information can accelerate the supply chain
process from suppliers to the market or to the hands of consumers. Long term relationships
can be created with a relationship that is transparent and accurate continuous between all
parties involved in supply chain management, and with good cooperation (Cooperation) and
mutual benefit it can be done. Furthermore, no less important is the integrated process
(Process Integration) of the overall incorporation of all activities in supply chain management
so that all activities run smoothly (Rachbini, 2016). The short-term goal of SCM is basically
to increase productivity and reduce inventory and time management, while the long-term goal
is to increase market share and supply chain integration for all supply chain members (Li et al,
2006). The results of Koh et.al's research (2007) found that Supply Chain Management
Practices have a significant positive effect on SCM Performance.
4.1.6 The Effect of Supply Chain Collaboration on Mediating the Relationship between
Trust and Operational Performance
The results prove that supply chain collaboration mediates trust in operational
performance. This means that the better the supply chain collaboration will mediate trust in
improving operational performance.
Trust between organizations can help improve supply chain performance in several
ways, namely: First, information sharing is often implemented to help improve performance
(information sharing). Then a shared vision, mission and strategy are often pursued in
achieving common goals (incentive alignment). Then coordinate decision making in
production and distribution (joint decision making). Furthermore, in terms of increasing the
productivity of the supply chain as a whole, parts of the supply chain often conduct joint
forecasting. This element is related to the performance improvement that occurs due to trust
between organizations. From several theoretical points of view above, it can be concluded that
collaborating in the supply chain or in the context of improving performance, trust between
organizations absolutely must be applied in every interaction in the supply chain (Yaqoub,
2011).
4.1.7 The Effect of Supply Chain Collaboration Mediating the Relationship of
Information Technology to Operational Performance
The results prove that supply chain collaboration mediates information technology on
operational performance. This means that the better the supply chain collaboration will
mediate information technology in improving operational performance.
The use of information systems in the field of inventory management is recognized as
being able to improve the company's logistics performance. Inventory that involves very
many types of goods requires data accuracy and data novelty. This is required by decision
makers in inventory planning and control. As understood, supply chain management is the
management of information flow from upstream to downstream. Accuracy of information will
ensure the right decision. The complexity of inventory problems increases when the
subjective involvement of decision makers or known as intervention becomes part of decision
making. The role of computer technology is very helpful to overcome various types of
problems in inventory management inventory management in a logistics perspective. IT helps
share forward and backward logistics information with suppliers. Integration of IT with
logistics helps achieve competitive advantage. Integration helps to get information at every
stage of the supply chain and hence optimize logistics costs or transportation costs. A high
level of logistics integrity with suppliers and customers leads to superior business
performance (Tripathy et.al, 2014).
Companies with good operational performance in the sense of being able to implement
flexibility in various ways, reduction of production lead time, production forecasting, resource
planning and cost savings and reduction of inventory levels will be able to improve their
company's SCM performance. A competitive supply chain in the market may be characterized
by efficient use of resources that will lead to lower product costs, better product quality, faster
response and lead to higher market share. Through SCM practices, it will provide
opportunities for companies to increase their sales.
5.1 Conclusion:
The conclusions in this study are as follows:
1. The results prove that trust has a positive effect on supply chain collaboration. This
means that the better trust will increase supply chain collaboration.
2. The results prove that information technology has a positive effect on supply chain
collaboration. This means that the better information technology will increase supply
chain collaboration.
3. The results prove that trust has a positive effect on operational performance. This means
that the better the trust will improve operational performance.
4. The results prove that information technology has a positive effect on operational
performance. This means that the better information technology will improve operational
performance.
5. The results prove that supply chain collaboration has a positive effect on operational
performance. This means that the better the supply chain collaboration will improve
operational performance.
6. The results prove that supply chain collaboration mediates trust in operational
performance. This means that the better the supply chain collaboration will mediate trust
in improving operational performance.
7. The results prove that supply chain collaboration mediates information technology on
operational performance. This means that the better the supply chain collaboration will
mediate information technology in improving operational performance.
