IMPROVING ORGANIZATIONAL PERFORMANCE (OP) THROUGH SUPPLY CHAIN MANAGEMENT PRACTICES (SCMP) AND STRATEGIC INFORMATION SYSTEM (SIS) WITH COMPETITIVE ADVANTAGE (CA) MEDIATION IN MICRO SMALL AND MEDIUM ENTERPRISES (MSMEs) IN SOLO RAYA
Keywords:
Supply Chain, Organizational Performance, Competitive Advantage, Strategic Information SystemAbstract
The purpose of this study was to find out how to improve organizational performance (OP) by implementing supply chain management practices (SCMP) and strategic information systems (SIS), in micro small and medium enterprises (MSMEs). The population and sample used are MSME actors in the Solo Raya area, which include: Surakarta City, Sragen Regency, Boyolali Regency, Klaten Regency, Sukoharjo Regency, Karanganyar Regency and Wonogiri Regency. The collection of respondents who are used as samples using google forms, which are distributed online. The sample criteria used are MSMEs, that have used or interacted with information technology or the internet. Data entered and can be used as many as 184 respondents. The research approach used is a structural equation model (SEM), the processing use the analysis moment of structural (AMOS) application program. Data processing carried out includes: selecting data that meets the criteria, then: validity test, reliability test, outlier evaluation, data normality test, goodness-of-fit model, and path coefficient analysis, which is continued by discussion, conclusions are made, the implications are explained, the limitations are described, and suggestions are made for further researchers as well as for MSMEs. The results of this study are: Supply chain management practices and strategic information systems, do not have a direct impact on organizational performance. However, strategic information systems can have a positive impact on competitive advantage and organizational performance levels. Competitive advantage (CA) can improve organizational performance. Furthermore, competitive advantage was found to fully mediate, on the influence of strategic information systems on organizational performance. However, competitive advantage is not able to mediate the effect of supply chain management practices on organizational performance. To improve the organizational performance of MSMEs, especially micro, not only by implementing a good strategic information system, but also needs to be supported by increasing competitive advantage.
Downloads
References
Raharja, S.u.J., et al., Utilisation analysis and increasing strategy: e-commerce use of SMEs in Bandung, Indonesia. International Journal of Trade and Global Markets, 2019. 12(3-4): p. 287-299.DOI: https://doi.org/10.1504/IJTGM.2019.101557.
Purbasari, R., Z. Muttaqin, and D.S. Sari, Digital entrepreneurship in pandemic Covid 19 Era: The digital entrepreneurial ecosystem framework. Review of integrative business and economics research, 2021. 10: p. 114-135.
Ferro G., C.J., et al., Sustainable Competitive Advantage: A Survey of Companies in Southern Brazil. BBR - Brazilian Business Review, vol. 14, núm. 3, mayo-junio, pp. 352-367 FUCAPE Business School Vitória, Brasil. 2017.DOI: https://doi.org/10.15728/bbr.2017.14.3.6.
Paladino, A., Investigating the drivers of innovation and new product success: a comparison of strategic orientations. Journal of Product Innovation Management, 2007. 24(6): p. 534-553.DOI: https://doi.org/10.1111/j.1540-5885.2007.00270.x.
Ahi, P. and C. Searcy, A comparative literature analysis of definitions for green and sustainable supply chain management. Journal of cleaner production, 2013. 52: p. 329-341.DOI: https://doi.org/10.1016/j.jclepro.2013.02.018.
Rubel, M., M.A. Kashem, and N. Sultana, Strategic Information System and Organizational Structure a Case on Meena Bazar Super Shop in Bangladesh. Journal Impact Factor, 2014. 5(4): p. 50-65.
Majid, R., The Model of Islamic Social Fund (Zakah, Infaq, Sadaqah, and Waqf) Utilization through Synergy of the Mosque-Baitul Maal Wat Tamwil as an Economic Stimulus for Micro and Small Enterprises. Islamic Sosial Finance and Its Role for Achieving Sustainable Development Goals: Islamic Economics Winter Course, 2021: p. 227.
Julita, J. Development of a Sharia Financing Model to Increase MSME Revenues in Lubuk Pakam District.
Kuruba, G., T.L. Ngwato, and R.L. Boy, Warehouse management systems (WMS) and business performance: an exploration of potential impact of WMS implementation on warehouse. International journal of logistics & supply chain management perspectives, 2019. 8(02): p. 3606-3614.
Siahaan, T., Nazaruddin, and I. Sadalia, The Effect of Supply Chain Management on Competitive Advantage and Operation Organization Performance at PT PLN (Persero). International Journal of Research and Review, 2020. 7(4): p. 80-87.
Sigalas, C., Competitive advantage: the known unknown concept. Management Decision, 53(9), 2004- 2016. 2015.DOI: https://doi.org/10.1108/MD-05-2015-0185.
Sharma, M.K., R. Bhagwat, and G.S. Dangayach, Performance measurement of information systems in small and medium sized enterprises: a strategic perspective. Production Planning and Control, 2008. 19(1): p. 12-24.DOI: https://doi.org/10.1080/09537280701737059.
Li, S., et al., The impact of supply chain management practices on competitive advantage and organizational performance. Omega, 2006. 34(2): p. 107-124.DOI: https://doi.org/10.1016/j.omega.2004.08.002.
Guimarães, J.C.F.d., E.A. Severo, and C.R.M.d. Vasconcelos, Sustainable competitive advantage: a survey of companies in Southern Brazil. BBR. Brazilian Business Review, 2017. 14: p. 352-367.DOI: https://doi.org/10.15728/bbr.2017.14.3.6.
Thoo, A.C., et al. Understanding supply chain management practices for small and medium-sized enterprises. IOP Publishing.DOI: https://doi.org/10.1088/1757-899X/215/1/012014.
Mabhungu, I. and B. Van Der Poll, A review of critical success factors which drives the performance of micro, small and medium enterprises, Vol. 12, No. 6. 2017.DOI: https://doi.org/10.5539/ijbm.v12n6p151.
Marques, C., et al., High-fat diet-induced obesity Rat model: a comparison between Wistar and Sprague- Dawley Rat. Adipocyte, 2016. 5(1): p. 11-21.DOI: https://doi.org/10.1080/21623945.2015.1061723.
Alshubaily, N.F. and A.A. Altameem, The Role of Strategic Information Systems (SIS) in Supporting and Achieving the Competitive Advantages (CA): An Empirical Study on Saudi Banking Sector. Int. J. Adv. Comput. Sci. Apllocations, 2017. 8(7): p. 128-139.DOI: https://doi.org/10.14569/IJACSA.2017.080718.
Devece, C., et al., Information systems strategy and its relationship with innovation differentiation and organizational performance. Information Systems Management, 2017. 34(3): p. 250-264.DOI: https://doi.org/10.1080/10580530.2017.1330002.
F, A.A., A. A, and G.R. A, The Effect of Information Technology on Organizational Structure and Firm Performance: An Analysis of Consultant Engineers Firms (CEF) in Iran. Social and Behavioral Sciences. 81, 644 – 649. 2013.DOI: https://doi.org/10.1016/j.sbspro.2013.06.490.
Nasution, E.Y. The Impact of E-Commerce Development on Conventional Merchants’ Income (case study: Medan central market).DOI: https://doi.org/10.32535/jicp.v2i3.642.
Hemmatfar, M., M. Salehi, and M. Bayat, Competitive advantages and strategic information systems. International Journal of Business and Management, 2010. 5(7): p. 158.DOI: https://doi.org/10.5539/ijbm.v5n7p158.
Muawanah, N.S. and M.K.d. Romandhon, The Effect of Effectiveness of Using Accounting Information Systems, Trust in Accounting Information Systems, Technical Ability of Users of Accounting Information Systems and Physical Convenience on Individual Performance (Empirical Study of Employees Working at the Regional Secretariat of Wonosobo Regency). ISSN: 1907–426X, Volume 11 No.2. 2016.
Lee, J.-S. and C.-J. Hsieh, A research in relating entrepreneurship, marketing capability, innovative capability and sustained competitive advantage. Journal of Business & Economics Research (JBER), 2010. 8(9).DOI: https://doi.org/10.19030/jber.v8i9.763.
Alamanda, D.T., et al., The Interest of Technology Adoption in E-Commerce Mobile Apps Using Modified Unified Theory of Acceptance and Use of Technology 2 in Indonesia. International Journal of Applied Business and International Management (IJABIM), 2021. 6(3): p. 35-45.DOI: https://doi.org/10.32535/ijabim.v6i3.1327.
Niu, Y., The impact of information technology on supply chain performance: A knowledge management perspective,1-24. . 2010.
Whitten, et al., “Triple-A supply chain performance”, International Journal of Operations & Production Management. Vol. 32 Iss: 1 pp. 28 – 48. 2012.DOI: https://doi.org/10.1108/01443571211195727.
Younis, H. and B. Sundarakani, The impact of firm size, firm age and environmental management certification on the relationship between green supply chain practices and corporate performance. Benchmarking, 27(1), 319–346. . 2020.DOI: https://doi.org/10.1108/BIJ-11-2018-0363.
K, L. and L. J, Management Information Systems: Managing the Digital Firm, 15th Edition. NJ: Prentice Hall. 2018.
Salamah, I., Utilization of Information Systems and Information Technology Effects on Individual Employee Performance. Jurnal Akuntansi dan Keuangan, 2012. 14(1): p. 56-68.
Y, A.C. and A.A. L, "Effects of strategic information systems on competitive strategy and performance", International Journal of Productivity and Performance Management, Vol. 67 Issue: 9, pp.2018-2045. 2008.DOI: https://doi.org/10.1108/IJPPM-07-2017-0166.
Astuti, E. and S.M. Rahayu, The influence of information technology strategy and management support to the internal business process, competitive advantage, financial and non-financial performance of the company. International Journal of Web Information Systems, Vol. 14 No. 3, pp. 317-333. , 2018.DOI: https://doi.org/10.1108/IJWIS-11-2017-0079.
Barney, J.B. and W.S. Hesterly, Strategic management and competitive advantage: Concepts. 2010: Prentice Hall Englewood Cliffs, NJ, USA.
David, R.F., Strategic Management Concepts and Cases. (Thirteenth Edition). United States of America: Pearson Eduction. 2011.
S, T., Nazaruddi, and S. I, The Effect of Supply Chain Management on Competitive Advantage and Operation Organization Performance at PT PLN (Persero). International Journal of Research and Review. Vol.7. 2020.
Hetri, L., K. Kirmizi, and D. Desmiyawati, Effect of competitive environment and management accounting system on organizational performance: organizational strategy as a moderating variable. Jurnal Ekonomi. 23(1).
Ho, C.C., The influence of Supply Chain Management (SCM) practices on organizational performance: Knowledge Management processes as mediator, 1-39. 2011.
Almazán, D.A., Y.S. Tovar, and J.M.M. Quintero, Influence of information systems on organizational results. Contaduría y Administración, 2017. 62(2): p. 321-338.DOI: https://doi.org/10.1016/j.cya.2017.03.001.
Apriliya, L.C. and R.F. Hutami, Supply Chain Management Practices (SCMP) on Sentra Industri Tahu Cibuntu Bandung, 1-6. . 2019.
Arisman, A. and L. Fuadah, Analysis of Factors Affect to Organizational Performance In Using Accounting Information Systems Through Users Satisfaction and Integration Information Systems.Sriwijaya International Journal of Dynamic Economics and Business, 2017. 1(2): p. 167-180.DOI: https://doi.org/10.29259/sijdeb.v1i2.167-180.
B, I.S. and H.A. A, Supply chain management integration and implementation: a literature review. Supply Chain Management: An International Journal 10/4 (2005) 252–263. 2015.DOI: https://doi.org/10.1108/13598540510612721.
Yoshikuni, A.C., et al., The influences of strategic information systems on the relationship between innovation and organizational performance. BBR. Brazilian Business Review, 2018. 15: p. 444- 459.DOI: https://doi.org/10.15728/bbr.2018.15.5.3.
Yuliarto, R.T. and G.P. Gusti. The Mediation Role of Trust from Past Experience on Market Orientation and MSME Performance: A Quantive Study During the Covid-19 Pandemic in Indonesia.
Ratnawati, R., Smes’innovation of the mediator of the influence of the implementation of csr program on competitive advantage of smes in malang. Jurnal Aplikasi Manajemen, 2017. 15(2): p. 261-270.DOI: https://doi.org/10.21776/ub.jam.2017.015.02.10.
Setiawan, S. and Nuryakin., The Effect of Experiental Marketing on Visitor Satisfaction and Visitor Loyalty at The CGV Cinemas Hartono Mall Yogyakarta, Indonesia. International Journal od Business Quantitative Economics and Applied Management Research, Volume 5, Issue 5. 2018.
V, A., The Effect of Lean Manufacturing on a Supply Chain Relationship and Performance. Sustainability, 11, 5751. 2019.DOI: https://doi.org/10.3390/su11205751.
C, A.J., A.R. T, and S. B, The Effect of Supply Chain Management Processes on Competitive Advantage and Organizational Performance (Case Study: Food Industries based in West Azerbaijan Province). Global Journal of Management Studies and Researches, 2(3) 2015, Pages: 152- 157. . 2015.
Shepard, L.A., Chapter 9: Evaluating test validity. Review of research in education, 1993. 19(1): p. 405- 450.DOI: https://doi.org/10.3102/0091732X019001405.
Sitharam, S. and M. Hoque, Factors affecting the performance of small and medium enterprises in KwaZulu-Natal, South Africa. Problems and perspectives in Management, 2016. 14(2): p. 277-288.DOI: https://doi.org/10.21511/ppm.14(2-2).2016.03.
Yap, L.L. and C.L. Tan, The effect of service supply chain management practices on the public healthcare organizational performance. International Journal of Business and Social Science, 2012. 3(16).
Spina, D., et al., The influence of supply chain management practices in the enterprise performance.American Journal of Management, 2015. 15(2): p. 54.
Wirdiyanti, R., “Digital Banking Technology Adoption and Bank Efficiency: The Indonesian Case”. December:1–34. 2019.
Xuhua, H., et al., Effects of business-to-business e-commerce adoption on competitive advantage of small and medium-sized manufacturing enterprises. Economics & sociology, 2019. 12(1): p. 80- 366.DOI: https://doi.org/10.14254/2071-789X.2019/12-1/4.
B, M., C. P, and K. K, Understanding Purchase Intention for Global Brands Among Young Indian Consumers. Amity Journal of Marketing. 3 (1), (112-122). 2018.
A, J.T., K. S.G, and Deshmukh, Supply chain issues in Indian manufacturing SMEs: insights from six case studies", Journal of Manufacturing Technology Management, Vol. 23 Iss 5 pp. 634 - 664. 2012.DOI: https://doi.org/10.1108/17410381211234444.
Adam, M., Effectiveness of Service Information Systems at Hospitals (Case Study on Outpatient Installation of Regional General Hospital Dr. Haryoto, Lumajang Regency), 1-123. 2018.
Agoba, A.M., et al., Central bank independence and inflation in Africa: The role of financial systems and institutional quality. Central Bank Review, 2017. 17(4): p. 131-146.DOI: https://doi.org/10.1016/j.cbrev.2017.11.001.
Zhou, K.Z., J.R. Brown, and C.S. Dev, Market orientation, competitive advantage, and performance: A demand-based perspective. Journal of business research, 2009. 62(11): p. 1063-1070.DOI: https://doi.org/10.1016/j.jbusres.2008.10.001.
Porter, M.E., The contributions of industrial organization to strategic management. Academy of management review, 1981. 6(4): p. 609-620.DOI: https://doi.org/10.5465/amr.1981.4285706.
Q, T.H., et al., "Supply chain management practices and firms’ operational performance", International Journal of Quality & Reliability Management, Vol. 34 Issue: 2, pp.176-193. 2017.DOI: https://doi.org/10.1108/IJQRM-05-2015-0072.
Qrunfleh, S. and M. Tarafdar, Supply chain information systems strategy: Impacts on supply chain performance and firm performance. International journal of production economics, 2014. 147: p. 340- 350.DOI: https://doi.org/10.1016/j.ijpe.2012.09.018.
Islami, N.N., S. Wahyuni, and T. Tiara, The Effect of Digital Marketing on Organizational Performance Through Intellectual Capital and Perceived Quality in Micro, Small and Medium Enterprises. Jurnal organisasi dan manajemen, 2020. 16(1): p. 59-70.DOI: https://doi.org/10.33830/jom.v16i1.718.2020.
Downloads
Published
Issue
Section
License
Copyright (c) 2022 Author
This work is licensed under a Creative Commons Attribution 4.0 International 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.
