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Supply Chain Integration Enables Resilience, Flexibility, and Innovation to Improve Business Performance in COVID-19 Era

Author

Listed:
  • Hotlan Siagian

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

  • Zeplin Jiwa Husada Tarigan

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

  • Ferry Jie

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

Abstract

The COVID-19 pandemic has brought about a sudden change from normal conditions to disruption conditions, and industrial sectors have experienced eroded growth. In particular, the manufacturing industry experienced a slowdown due to the sudden disruption in supply and demand. This situation stimulates the manufacturing industry to recover from this current challenging disruption. This study investigates the impact of supply chain integration on business performance through supply chain resilience, supply chain flexibility, and innovation system in Indonesia’s manufacturing companies. Data collection has obtained as many as 470 questionnaires considered valid for further analysis. Data analysis used the partial least square (PLS) technique using smartPLS software version 3.0. The results show that supply chain integration affects innovation system, supply chain flexibility, and supply chain resilience because of its ability to share complete product information and share production planning. Innovation systems and supply chain flexibility enhance supply chain resilience through the ability to deal with sudden changes in customer demand and production problems. Supply chain integration improves business performance through innovation, supply chain flexibility, and supply chain resilience in the COVID-19 era. This research could be the best practice for managers in restoring manufacturing performance quickly. This study also contributes to the current research in supply chain management.

Suggested Citation

  • Hotlan Siagian & Zeplin Jiwa Husada Tarigan & Ferry Jie, 2021. "Supply Chain Integration Enables Resilience, Flexibility, and Innovation to Improve Business Performance in COVID-19 Era," Sustainability, MDPI, vol. 13(9), pages 1-19, April.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:9:p:4669-:d:541202
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    5. Abdul Basit & Laijun Wang & Samera Nazir & Saqib Mehmood & Iftikhar Hussain, 2023. "Managing the COVID-19 Pandemic: Enhancing Sustainable Supply Chain Performance through Management Innovation, Information Processing Capability, Business Model Innovation and Knowledge Management Capa," Sustainability, MDPI, vol. 15(18), pages 1-23, September.
    6. Junaid, Muhammad & Zhang, Qingyu & Cao, Mei & Luqman, Adeel, 2023. "Nexus between technology enabled supply chain dynamic capabilities, integration, resilience, and sustainable performance: An empirical examination of healthcare organizations," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    7. Muhammad Noman Shafique & Ammar Rashid & Sook Fern Yeo & Umar Adeel, 2023. "Transforming Supply Chains: Powering Circular Economy with Analytics, Integration and Flexibility Using Dual Theory and Deep Learning with PLS-SEM-ANN Analysis," Sustainability, MDPI, vol. 15(15), pages 1-23, August.
    8. Arsalan Zahid Piprani & Noor Ismawati Jaafar & Suhana Mohezar Ali & Muhammad Shujaat Mubarik & Muhammad Shahbaz, 2022. "Multi-dimensional supply chain flexibility and supply chain resilience: the role of supply chain risks exposure," Operations Management Research, Springer, vol. 15(1), pages 307-325, June.
    9. Sara Alonso-Muñoz & Rocío González-Sánchez & Cristina Siligardi & Fernando E. García-Muiña, 2021. "New Circular Networks in Resilient Supply Chains: An External Capital Perspective," Sustainability, MDPI, vol. 13(11), pages 1-18, May.
    10. Jianhua Yang & Yuying Liu & Yajun Jia, 2022. "Influence of Trust Relationships with Suppliers on Manufacturer Resilience in COVID-19 Era," Sustainability, MDPI, vol. 14(15), pages 1-23, July.
    11. 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.
    12. Summer K. Mohamed & Sandra Haddad & Mahmoud Barakat & Bojan Rosi, 2023. "Blockchain Technology Adoption for Improved Environmental Supply Chain Performance: The Mediation Effect of Supply Chain Resilience, Customer Integration, and Green Customer Information Sharing," Sustainability, MDPI, vol. 15(10), pages 1-20, May.
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