The Effect of Logistical-Crossfunctional Drivers on the Competitive Strategy of the Supply Chain of SMEs: A Case Study
DOI:
https://doi.org/10.22219/JTIUMM.Vol22.No1.85-97Keywords:
Competitive Strategy , Logistical-Crossfunctional, Supply-chain, PLS-SEM, SMEsAbstract
Small and Medium Enterprises (SMEs) dominate the business world in Indonesia with a high Gross Domestic Product contribution. However, SMEs are unable to compete with large industries due to uncompetitive supply chains. The logistical-crossfunctional aspect of drivers is an aspect driving a competitive supply chain. This study aims to examine the effect of logistical-crossfunctional drivers on the competitive strategy of the supply chain for SMEs in Indonesia. The case study was conducted in SMEs scattered in East Java, Indonesia. The data analysis method used PLS-SEM. The results showed that the logistical-crossfunctional aspects of SME drivers have a significant effect on the supply chain competitive strategy. The implications of the research results are used to develop supply chain strategies for SMEs with a priority scale of logistical-crossfunctional drivers such as 1) facilities; 2) sourcing; 3) information; 4) transportation; 5) inventory; and 6) pricing.
Downloads
References
T. Tambunan, "Recent evidence of the development of micro, small and medium enterprises in Indonesia," Journal of Global Entrepreneurship Research, vol. 9, p. 18, 2019. https://doi.org/10.1186/s40497-018-0140-4.
S. Chopra and P. Meindl, "Supply Chain Management," in Supply Chain Management, 5th Edition ed New Jersey-USA: Prentice Hall, 2019.
I. N. Pujawan and E. Mahendrawathi, Supply Chain Management, Ketiga ed. Yogyakarta: Andi Publiser, 2017.
S. A. Helmi, F. M. Rafiei, M. Rahiminezhad Galankashi, and A. R. Abdul Rahim, "Agility assessment in manufacturing companies," Benchmarking: An International Journal, vol. 26, pp. 2081-2104, 2019. https://doi.org/10.1108/BIJ-10-2018-0328.
T. Eicker and J. O. Cilliers, "Managing logistical supply chain drivers: A predictor of small township retailers' odds of survival," Acta Commercii, vol. 19, pp. 1-12, 2019. http://dx.doi.org/10.4102/ac.v19i2.590
S. M. S. Rana, "Supply chain drivers and retail supply chain responsiveness: strategy as moderator," International Journal of Management Practice, vol. 13, pp. 1-22, 2019. https://doi.org/10.1504/IJMP.2020.104066.
L. H. Madyaratry, H. Hardjomidjojo, and E. Anggraeni, "The Mapping of Sustainability Index in Small and Medium Enterprises: A Case Study in Lampung Indonesia," Jurnal Teknik Industri; Vol 21, No 1 (2020): February, 2020. https://doi.org/10.22219/JTIUMM.Vol21.No1.58-69.
D. Rita, "Analisis Aksesibilitas Permodalan Usaha Mikro Kecil Di Provinsi Sumatera Barat," Jurnal Ekonomi dan Pembangunan, vol. 27, 2019. https://doi.org/10.14203/JEP.27.1.2019.67-80.
W. Sasongko, "Strategi Dinas Koperasi Dan Umkm Kabupaten Jombang Dalam Meningkatkan Daya Saing Umkm Untuk Menghadapi Asean Economic Community 2016," Universitas Airlangga, vol. 4, 2016.
C. H. Ong, S. M. Salleh, and R. Z. Yusoff, "The role of emotional and rational trust in explaining attitudinal and behavioral loyalty: An insight into SME brands," Gadjah Mada International Journal of Business, vol. 18, pp. 1–19, 2016. https://doi.org/10.3316/informit.010526072986480.
R. P. Sari and D. T. Santoso, "Readiness Factor Identification on Kabupaten Karawang SMEs towards Industry 4.0 Era," Jurnal Teknik Industri, vol. 22, pp. 65-74, 2020. https://doi.org/10.9744/jti.22.1.65-74.
M. D. Revindo, C. Gan, and N. W. G. Massie, "Factors affecting propensity to export: The case of Indonesian SMEs," Gadjah Mada International Journal of Business, vol. 21, pp. 263-288, 2019. https://doi.org/10.22146/gamaijb.41022.
R. Ortt, J. Rezaei, and P. Trott, "Supply chain drivers, partnerships and performance of high-tech SMEs," International Journal of Productivity and Performance Management, vol. 67, pp. 629-653, 2018. https://doi.org/10.1108/IJPPM-01-2017-0017.
M. R. Galankashi and S. A. Helmi, "Assessment of lean manufacturing practices: an operational perspective," International Journal of Services and Operations Management, vol. 28, pp. 163-184, 2017. https://doi.org/10.1504/IJSOM.2017.086308.
S. K. Gandhi, A. Sachdeva, and A. Gupta, "Measuring Supplier Service Quality in Indian SMEs Using Factor Analysis & GTA," Jurnal Teknik Industri, vol. 20, pp. 11-24, 2018. https://doi.org/10.9744/jti.20.1.11-24.
J. M. Panjaitan, M. Darwina, I. Bastian, and S. Sukamdi, "What do banks, rural credit institutions, and regulators infer from the current strengths and standing of Indonesian SMEs?," Gadjah Mada International Journal of Business, vol. 22, pp. 1-23, 2020. https://doi.org/10.22146/gamaijb.53968.
K. Ganguly and G. Kumar, "Supply chain risk assessment: a fuzzy AHP approach," Operations and Supply Chain Management: An International Journal, vol. 12, pp. 1-13, 2019. http://doi.org/10.31387/oscm0360217.
W. Wulandari, R. N. Sari, and L. Al Azhar, "Pengaruh Supply Chain Management Terhadap Kinerja Perusahaan Melalui Keunggulan Bersaing," Jurnal Ekonomi, vol. 21, pp. 462-479, 2017. http://dx.doi.org/10.24912/je.v21i3.31.
I. Masudin, "Location-allocation problems in the perspective of supply chain: Approaches and applications," Jurnal Teknik Industri, vol. 20, pp. 1-11, 2019. https://doi.org/10.22219/JTIUMM.Vol20.No1.1-11.
A. Qosasi, E. Permana, A. Muftiadi, M. Purnomo, and E. Maulina, "Building SMEs’ Competitive Advantage and the Organizational Agility of Apparel Retailers in Indonesia: The role of ICT as an Initial Trigger," Gadjah Mada International Journal of Bussiness, vol. 21, p. 23, 2019. https://doi.org/10.22146/gamaijb.39001.
I. Mas'udin and M. S. Kamara, "Electronic Data Interchange and Demand Forecasting Implications on Supply Chain Management Collaboration: A Customer Service Perspective," Jurnal Teknik Industri, vol. 18, pp. 138-148, 2017. https://doi.org/10.22219/JTIUMM.Vol18.No2.138-148.
L. A. Kantari, I. N. Pujawan, N. I. Arvitrida, and P. Hilletofth, "Investigating the mix of contract-based and on-demand sourcing for transportation services under fluctuate and seasonal demand," International Journal of Logistics Research and Applications, pp. 1-23, 2020. https://doi.org/10.1080/13675567.2020.1751807.
L. Yu and J. Zhang, "A two-period pricing model with hunger marketing strategy," Journal of Modelling in Management, vol. 13, pp. 81-100, 2018. https://doi.org/10.1108/JM2-02-2016-0012.
S.-S. Gan, I. N. Pujawan, Suparno, and B. Widodo, "Pricing decision for new and remanufactured product in a closed-loop supply chain with separate sales-channel," International Journal of Production Economics, vol. 190, pp. 120-132, 2017. https://doi.org/10.1016/j.ijpe.2016.08.016.
BPS-Jombang, "Potensi Sentra Industri Kecil Dan Menengah Tahun 2017," B. P. Statistik, Ed., ed. Jombang, 2018.
J. F. Hair, G. T. M. Hult, C. M. Ringle, M. Sarstedt, and K. O. Thiele, "Mirror, mirror on the wall: a comparative evaluation of composite-based structural equation modeling methods," Journal of the Academy of Marketing Science, vol. 45, pp. 616-632, 2017. https://doi.org/10.1007/s11747-017-0517-x.
M. Sarstedt, J. F. Hair, J.-H. Cheah, J.-M. Becker, and C. M. Ringle, "How to specify, estimate, and validate higher-order constructs in PLS-SEM," Australasian Marketing Journal (AMJ), vol. 27, pp. 197-211, 2019. https://doi.org/10.1016/j.ausmj.2019.05.003.
C. M. Ringle, J. F. Hair, G. F. Khan, M. Sarstedt, W.-L. Shiau, and M. P. Fritze, "Methodological research on partial least squares structural equation modeling (PLS-SEM)," Internet Research, vol. 29, pp. 407-429, 2019. https://doi.org/10.1108/IntR-12-2017-0509.
E. Tsanaktsidou, C. Karavasili, C. K. Zacharis, D. G. Fatouros, and C. K. Markopoulou, "Partial Least Square Model (PLS) as a Tool to Predict the Diffusion of Steroids Across Artificial Membranes," Molecules, vol. 25, 2020. https://doi.org/10.3390/molecules25061387.
M. Sarstedt, C. Ringle, and J. Hair, "Partial Least Squares Structural Equation Modeling," in Handbook of Market Research, ed: Springer, 2017. https://doi.org/10.1007/978-3-319-05542-8_15-1.
C. M. Ringle, J. F. Hair, J. J. Risher, and M. Sarstedt, "When to use and how to report the results of PLS-SEM," European Business Review, vol. 31, pp. 2-24, 2019. https://doi.org/10.1108/EBR-11-2018-0203.
J. F. Hair, C. M. Ringle, J. J. Risher, and M. Sarstedt, "When to use and how to report the results of PLS-SEM," European Business Review, vol. 31, pp. 2-24, 2019. https://doi.org/10.1108/EBR-11-2018-0203.
J. F. Hair Jr, G. T. M. Hult, C. Ringle, and M. Sarstedt, A primer on partial least squares structural equation modeling (PLS-SEM): Sage publications, 2016.
N. Malik, "The Influence of Turnover Factors Toward Employees’ Intention to Stay: A Case Study in Indonesian Islamic Universities," Jurnal Teknik Industri, vol. 21, pp. 80-91, 2020. https://doi.org/10.22219/JTIUMM.Vol21.No1.80-91.
I. Giyanti and E. Indriastiningsih, "Effect of SME Food Entrepreneurs Knowledge on Halal Certification for Certified Awareness Using Partial Least Square," Jurnal Teknik Industri, vol. 20, pp. 140-151, 2019. https://doi.org/10.22219/JTIUMM.Vol20.No2.140-151.
F. Tentama and S. Subardjo, "Pengujian validitas dan reliabilitas konstruk pada organizational citizenship behavior," Humanitas, vol. 15, pp. 62-71, 2018. https://doi.org/10.26555/humanitas.v15i1.5282.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2021 Sumarsono sumarsono, Nur Muflihah
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
