The role of implementing supplier relationship strategies, relationship with customer, and information sharing on company performance

Authors

  • Eka Afrilia Universitas Pembangunan Nasional "Veteran" Yogyakarta
  • Inesa Nining Ratihsabella Universitas Pembangunan Nasional "Veteran" Yogyakarta

DOI:

https://doi.org/10.12928/jombi.v1i1.576

Abstract

Purpose-In this study, the effects of information sharing, customer relations, and supplier relationship strategies on company performance are investigated.

Design/Methodology/Approach-The study's sample consists of workers of Bank Rakyak Indonesia, which is situated in Yogyakarta's Special Region. 60 workers served as responders in the study, providing a sample size.  This research data is acquired using the Smart PLS analysis program in order to get the intended outcomes.

Findings-Empirical results indicate that supplier relationship strategies and information sharing positively impact company performance. Conversely, relationship with consumers who have a negative impact on company performance.

Research limitations/implications- This study's scope is restricted to operational factors that impact company performance, such as customer relationships, supplier relationship strategies, and information sharing. The study's findings can be utilized by businesses as a foundation for assessment to optimize variables that may impact their performance.

Originality/value- It can be argued that there is still a dearth of research on the performance of banking institutions operating in the Special Region of Yogyakarta. No prior studies have addressed the performance of these institutions with regard to operational factors like supplier relationship strategies, customer relationships, and information sharing.

References

Adiwijaya, M., Kaihatu, T., Nugroho, A., & Kartika, E. W. (2017). The issues of risk, trust, and customer intention: A search for the relationship. Risk Governance and Control: Financial Markets and Institutions, 7(1). https://doi.org/10.22495/rgcv7i1art11

Al-Abdallah, G. M., Abdallah, A. B., & Bany Hamdan, K. (2014). The impact of supplier relationship management on competitive performance of manufacturing firms. International Journal of Business and Management, 9(2). https://doi.org/10.5539/ijbm.v9n2p192

Banomyong, R., & Supatn, N. (2011). Developing a supply chain performance tool for SMEs in Thailand. Supply Chain Management, 16(1). https://doi.org/10.1108/13598541111103476

Diabat, A., & Govindan, K. (2011). An analysis of the drivers affecting the implementation of green supply chain management. Resources, Conservation and Recycling, 55(6). https://doi.org/10.1016/j.resconrec.2010.12.002

Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28(1). https://doi.org/10.1016/j.jom.2009.06.001

Ghozali, I., & Latan, H. (2015). Partial least squares konsep, teknik dan aplikasi menggunakan program SmartPLS 3.0 untuk penelitian empiris. Badan Penerbit Universitas Diponegoro.

Guerola-Navarro, V., Oltra-Badenes, R., Gil-Gomez, H., & Gil-Gomez, J. A. (2020). Customer relationship management (CRM): A bibliometric analysis. International Journal of Services Operations and Informatics, 10(3). https://doi.org/10.1504/IJSOI.2020.108988

Guerola-Navarro, V., Oltra-Badenes, R., Gil-Gomez, H., & Iturricha Fernández, A. (2021). Customer relationship management (CRM) and innovation: A qualitative comparative analysis (QCA) in the search for improvements on the firm performance in winery sector. Technological Forecasting and Social Change, 169. https://doi.org/10.1016/j.techfore.2021.120838

Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. Advances in International Marketing, 20. https://doi.org/10.1108/S1474-7979(2009)0000020014

Hofmann, E., Sternberg, H., Chen, H., Pflaum, A., & Prockl, G. (2019). Supply chain management and Industry 4.0: conducting research in the digital age. International Journal of Physical Distribution and Logistics Management, 49(10). https://doi.org/10.1108/IJPDLM-11-2019-399

Hsu, C. C., Tan, K. C., Kannan, V. R., & Keong Leong, G. (2009). Supply chain management practices as a mediator of the relationship between operations capability and firm performance. International Journal of Production Research, 47(3). https://doi.org/10.1080/00207540701452142

Huo, B., Zhao, X., & Lai, F. (2014). Supply chain quality integration: Antecedents and consequences. IEEE Transactions on Engineering Management, 61(1). https://doi.org/10.1109/TEM.2013.2278543

Joseph, A., & Jerome, N. (2017). Relevance of stakeholders theory, organizational identity theory and social exchange theory to corporate social responsibility and employees performance in the commercial banks in Nigeria. International Journal of Business, Economics and Management, 4(5). https://doi.org/10.18488/journal.62.2017.45.95.105

Khan, A., & Siddiqui, D. A. (2018). Information sharing and strategic supplier partnership in supply chain management: A study on pharmaceutical companies of Pakistan. Asian Business Review, 8(3), 117–124.

Kocabasoglu, C., & Suresh, N. C. (2006). Strategic sourcing: An empirical investigation of the concept and its practices in US manufacturing firms. Journal of Supply Chain Management, 42(2), 4–16. https://doi.org/10.1111/j.1745-493X.2006.00008.x

Kumar, R. S., & Pugazhendhi, S. (2012). Information sharing in supply chains: An overview. Procedia Engineering, 38. https://doi.org/10.1016/j.proeng.2012.06.258

Kumar, V. (2018). Transformative marketing: The next 20 years. Journal of Marketing, 82(4). https://doi.org/10.1509/jm.82.41

Li, S., Ragu-Nathan, B., Ragu-Nathan, T. S., & Subba Rao, S. (2006). The impact of supply chain management practices on competitive advantage and organizational performance. Omega, 34(2). https://doi.org/10.1016/j.omega.2004.08.002

Lindroos, K. (2015). Implementation of the theoretical concept of green procurement and supplier selection in Estonian shipbuilding industry. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2708836

Lotfi, Z., Mukhtar, M., Sahran, S., & Zadeh, A. T. (2013). Information sharing in supply chain management. Procedia Technology, 11. https://doi.org/10.1016/j.protcy.2013.12.194

Madlberger, M. (2009). What drives firms to engage in interorganizational information sharing in supply chain management?. International Journal of E-Collaboration (IJeC), 5(2). https://doi.org/10.4018/jec.2009040102

Marinagi, C., Trivellas, P., & Reklitis, P. (2015). Information quality and supply chain performance: The mediating role of information sharing. Procedia - Social and Behavioral Sciences, 175. https://doi.org/10.1016/j.sbspro.2015.01.1225

Mathiyazhagan, K., Govindan, K., & Noorul Haq, A. (2014). Pressure analysis for green supply chain management implementation in Indian industries using analytic hierarchy process. International Journal of Production Research, 52(1). https://doi.org/10.1080/00207543.2013.831190

Nag, T., & Ferdausy, S. (2021). Supply chain management practices and supply chain performance in the manufacturing industries of Bangladesh: An empirical study. Logistics & Supply Chain Review, 2(1), 1–26. https://doi.org/10.38157/logistics-supply-chain-review.v2i1.192

Narasimhan, R., & Talluri, S. (2009). Perspectives on risk management in supply chains. In Journal of Operations Management, 27(2). https://doi.org/10.1016/j.jom.2009.02.001

Niknejad, A., & Petrovic, D. (2016). A fuzzy dynamic inoperability input-output model for strategic risk management in global production networks. International Journal of Production Economics, 179. https://doi.org/10.1016/j.ijpe.2016.05.017

Olorunniwo, F. O., & Li, X. (2010). Information sharing and collaboration practices in reverse logistics. Supply Chain Management, 15(6). https://doi.org/10.1108/13598541011080437

Onyango, O. J. (2015). Effect of strategic supplier relationship management on internal operational performance of manufacturing firms: A case of East African Breweries Limited, Kenya. International Journal of Economics, Finance and Management Sciences, 3(2). https://doi.org/10.11648/j.ijefm.20150302.16

Park, J., Shin, K., Chang, T. W., & Park, J. (2010). An integrative framework for supplier relationship management. Industrial Management and Data Systems, 110(4). https://doi.org/10.1108/02635571011038990

Paulraj, A., Chen, I. J., & Lado, A. A. (2012). An empirical taxonomy of supply chain management practices. Journal of Business Logistics, 33(3). https://doi.org/10.1111/j.0000-0000.2012.01046.x

Pipe, S. W., Pasi, J., Lissitchkov, T., Ragni, M. V., Négrier, C., Yu, Q., Poloskey, S., Mei, B., & Andersson, S. R. (2020). Long-term durability, safety, and efficacy of fitusiran prophylaxis in people with hemophilia a or b, with or without inhibitors: results from the phase II study. Blood, 136. https://doi.org/10.1182/blood-2020-136501

Prajogo, D., & Olhager, J. (2012). Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration. International Journal of Production Economics, 135(1). https://doi.org/10.1016/j.ijpe.2011.09.001

Saad, N. A., Elgazzar, S., & Mlaker Kac, S. (2022). Linking supply chain management practices to customer relationship management objectives: A proposed framework. Business: Theory and Practice, 23(1). https://doi.org/10.3846/btp.2022.15475

Shibin, K. T., Dubey, R., Gunasekaran, A., Hazen, B., Roubaud, D., Gupta, S., & Foropon, C. (2020). Examining sustainable supply chain management of SMEs using resource based view and institutional theory. Annals of Operations Research, 290(1–2). https://doi.org/10.1007/s10479-017-2706-x

Sillanpää, I., Shahzad, K., & Sillanpää, E. (2015). Supplier development and buyer-supplier relationship strategies-a literature review. International Journal of Procurement Management, 8(1–2). https://doi.org/10.1504/IJPM.2015.066283

Singh, S. K., Kagalwala, M. N., Parker-Thornburg, J., Adams, H., & Majumder, S. (2010). Can controversies be put to rest?. Nature, 467. https://doi.org/10.1038/nature09305

Song, H., Turson, R., Ganguly, A., & Yu, K. (2017). Evaluating the effects of supply chain quality management on food firms’ performance: The mediating role of food certification and reputation. International Journal of Operations and Production Management, 37(10). https://doi.org/10.1108/IJOPM-11-2015-0666

Šontaitė-Petkevičienė, M. (2015). CSR reasons, practices and impact to corporate reputation. Procedia - Social and Behavioral Sciences, 213. https://doi.org/10.1016/j.sbspro.2015.11.441

Sukati, I., Hamid, A. B., Baharun, R., & Yusoff, R. M. (2012). The study of supply chain management strategy and practices on supply chain performance. Procedia - Social and Behavioral Sciences, 40. https://doi.org/10.1016/j.sbspro.2012.03.185

Sun, K. A., & Kim, D. Y. (2013). Does customer satisfaction increase firm performance? An application of American Customer Satisfaction Index (ACSI). International Journal of Hospitality Management, 35. https://doi.org/10.1016/j.ijhm.2013.05.008

Thatte, A. A., Rao, S. S., & Ragu-Nathan, T. S. (2013). Impact of SCM practices of a firm on supply chain responsiveness and competitive advantage of a firm. Journal of Applied Business Research, 29(2). https://doi.org/10.19030/jabr.v29i2.7653

Tseng, S. M. (2014). The impact of knowledge management capabilities and supplier relationship management on corporate performance. International Journal of Production Economics, 154. https://doi.org/10.1016/j.ijpe.2014.04.009

Vanichchinchai, A. (2014). Supply chain management, supply performance and total quality management: An organizational characteristic analysis. International Journal of Organizational Analysis, 22(2). https://doi.org/10.1108/IJOA-08-2011-0500

Zhou, H., & Benton, W. C. (2007). Supply chain practice and information sharing. Journal of Operations Management, 25(6). https://doi.org/10.1016/j.jom.2007.01.009

Downloads

Published

2023-11-13

Issue

Section

Articles