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Why Supply Chain Integration Matter for SME’s Innovation Performance?

Author

Listed:
  • Muchammad Afif Yahya

    (Bina Nusantara University Jakarta)

  • Samuel Kenneth Jonathan

    (Bina Nusantara University Jakarta)

  • Darjat Sudrajat

    (Bina Nusantara University Jakarta)

Abstract

Small—and medium-sized businesses (SMEs) constitute a fundamental cornerstone of the Indonesian economy, making a significant contribution to businesses, GDP, and employment. Nevertheless, numerous small—and medium-sized enterprises have not yet reached the most effective innovation procedures. This study aims to examine how managerial commitment (MC) and digitalization (D) influence innovation performance (IP), with supply chain integration (SCI) acting as a mediator. The study utilized a quantitative research strategy, employing probability sampling for data collecting and SEM-PLS for data analysis. A sum of 138 small—and medium-sized business proprietors who are residents of the Jabodetabek region comprise the research sample. The research findings indicate that digitization and management commitment exert a beneficial influence on innovation performance, with supply chain integration as a mediator. This research model is expected to fill the gaps in previous research and provide guidance for SMEs to address the evolving demands of innovation, as well as adapt sustainable practices in dynamic environments and technologies.

Suggested Citation

  • Muchammad Afif Yahya & Samuel Kenneth Jonathan & Darjat Sudrajat, 2025. "Why Supply Chain Integration Matter for SME’s Innovation Performance?," Springer Proceedings in Business and Economics,, Springer.
    • Handle: RePEc:spr:prbchp:978-3-031-77363-1_20
    DOI: 10.1007/978-3-031-77363-1_20
    as

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