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Impact of Internal Integration, Supply Chain Partnership, Supply Chain Agility, and Supply Chain Resilience on Sustainable Advantage

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  • Zeplin Jiwa Husada Tarigan

    (Management Program, Faculty of Business and Economics, Petra Christian University, Jl. Siwalankerto 121-131, Surabaya 60236, Indonesia)

  • Hotlan Siagian

    (Management Program, Faculty of Business and Economics, Petra Christian University, Jl. Siwalankerto 121-131, Surabaya 60236, Indonesia)

  • Ferry Jie

    (School of Business and Law, Edith Cowan University, Joondalup 6027, Australia)

Abstract

The global order has suddenly changed due to the COVID-19 pandemic. Many countries, including Indonesia, have applied lockdown policies to stop the spread of COVID-19. Lockdown policies have disrupted the supply of raw materials and the demand for finished goods. The manufacturing industry is one of the sectors that has suffered most in this situation, and they have struggled to reconfigure their internal and external supply chain network and partnership. This study examined the impact of internal integration, supply chain partnership, supply chain agility, and supply chain resilience on sustainable advantage. The participants of this study were from manufacturing companies in Indonesia. For data collection, a questionnaire was used, with a five-point Likert scale to obtain the respondents’ opinions. Using Google Form link, the questionnaire was distributed via email and the WhatsApp social media application to the predetermined set of manufacturing companies. Respondents filled out 672 questionnaires, and 456 respondents (corresponding to 67.86%) filled it out correctly and were considered valid for further analysis. Partial least squares (PLS) regression was used to analyze the data using the SmartPLS software version 3.3. The results supported all nine hypotheses proposed. Internal integration through interdepartmental data sharing affects supply chain (SC) partnerships, SC agility, and SC resilience. Moreover, SC partnerships, through the on-time delivery of materials and by coping with changing demand, improve SC agility, SC resilience, and sustainable advantages. SC agility, in keeping the production process running normally and regulating the production capacity, affects SC resilience and sustainable advantage. SC resilience improves sustainable advantage by providing timely product delivery and reliable sales volumes in pandemic conditions. These results provide insights for managers into enhancing the sustainable advantage by improving supply chain agility, supply chain resilience, and supply chain partnerships. This study could contribute and extend the acceptance of previous studies in the context of the manufacturing industry.

Suggested Citation

  • Zeplin Jiwa Husada Tarigan & Hotlan Siagian & Ferry Jie, 2021. "Impact of Internal Integration, Supply Chain Partnership, Supply Chain Agility, and Supply Chain Resilience on Sustainable Advantage," Sustainability, MDPI, vol. 13(10), pages 1-18, May.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:10:p:5460-:d:554087
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    References listed on IDEAS

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    4. Limin Zhang & Fei Gu & Mingke He, 2024. "The Influence of Digital Transformation on the Reconfigurability and Performance of Supply Chains: A Study of the Electronic, Machinery, and Home Appliance Manufacturing Industries in China," Sustainability, MDPI, vol. 16(7), pages 1-22, March.
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    7. Shi Qiao & Qiankun Wang, 2021. "The Effect of Relational Capital on Organizational Performance in Supply Chain: The Mediating Role of Explicit and Tacit Knowledge Sharing," Sustainability, MDPI, vol. 13(19), pages 1-17, September.
    8. Gaurav Kumar Badhotiya & Gunjan Soni & Vipul Jain & Rohit Joshi & Sameer Mittal, 2022. "Assessing supply chain resilience to the outbreak of COVID-19 in Indian manufacturing firms," Operations Management Research, Springer, vol. 15(3), pages 1161-1180, December.
    9. Erdinç Koç & Muhammet Burak Delibaş & Yaprak Anadol, 2022. "Environmental Uncertainties and Competitive Advantage: A Sequential Mediation Model of Supply Chain Integration and Supply Chain Agility," Sustainability, MDPI, vol. 14(14), pages 1-18, July.
    10. Sebastjan Lazar & Vojko Potočan & Dorota Klimecka-Tatar & Matevz Obrecht, 2022. "Boosting Sustainable Operations with Sustainable Supply Chain Modeling: A Case of Organizational Culture and Normative Commitment," IJERPH, MDPI, vol. 19(17), pages 1-23, September.
    11. Chia-Chun Hsieh & Shieh-Liang Chen & Chun-Chen Huang, 2023. "Investigating the Role of Supply Chain Environmental Risk in Shaping the Nexus of Supply Chain Agility, Resilience, and Performance," Sustainability, MDPI, vol. 15(20), pages 1-16, October.
    12. Li Cui & Hao Wu & Lin Wu & Ajay Kumar & Kim Hua Tan, 2023. "Investigating the relationship between digital technologies, supply chain integration and firm resilience in the context of COVID-19," Annals of Operations Research, Springer, vol. 327(2), pages 825-853, August.
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    14. Abid Ali & Ahmad Wasim, 2022. "Innovative Framework for Assessing the Impact of Agile Manufacturing in Small and Medium Enterprises (SMEs)," Sustainability, MDPI, vol. 14(18), pages 1-20, September.
    15. Fridolin Simon Brand & Richard Blaese & Giulia Weber & Herbert Winistoerfer, 2022. "Changes in Corporate Responsibility Management during COVID-19 Crisis and Their Effects on Business Resilience: An Empirical Study of Swiss and German Companies," Sustainability, MDPI, vol. 14(7), pages 1-18, March.
    16. Ghazal Rezaei & Seyed Mohammad Hassan Hosseini & Shib Sankar Sana, 2022. "Exploring the Relationship between Data Analytics Capability and Competitive Advantage: The Mediating Roles of Supply Chain Resilience and Organization Flexibility," Sustainability, MDPI, vol. 14(16), pages 1-23, August.
    17. Imadeddine Oubrahim & Naoufal Sefiani & Ari Happonen, 2023. "The Influence of Digital Transformation and Supply Chain Integration on Overall Sustainable Supply Chain Performance: An Empirical Analysis from Manufacturing Companies in Morocco," Energies, MDPI, vol. 16(2), pages 1-24, January.

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