Analysis of the effect of supplier-company's long-term commitment, communication and strategy on supply chain performance in manufacturing sector

Abstract

The purpose of this study is to find answers to the research problem posed, namely the implementation of the long-term cooperation strategy between suppliers and companies through supplier commitment factors with companies and supplier communication with companies that can improve the company's supply chain performance. The populations in this study are suppliers of manufacturing companies listed on the Indonesia Stock Exchange (BEI) in 2016-2020. Data were collected using a questionnaire containing questions related to research. Furthermore, in this study a theoretical model was developed by proposing 5 hypotheses to be tested using Structural Equations Modeling (SEM) using AMOS software. The results showed that the function and existence of the antecedents of the Long-Term Cooperation Strategy have a high role in determining Supply Chain Performance. Based on the influence analysis, it can be concluded that Communication has a higher influence on Supply Chain Performance compared to Commitment.