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.
Highlights
The COVID-19 pandemic has caused sudden disruption and has affected all areas of life, including health services, and the economic, agriculture, education, sport, and manufacturing industries
The initial purpose of this study is to examine the impact of internal integration, supply chain partnership, supply chain agility, and supply chain resilience on sustainable advantage
The results indicate that data support all nine hypotheses developed, and all findings are in line with previous research referenced in this study
Summary
The COVID-19 pandemic has caused sudden disruption and has affected all areas of life, including health services, and the economic, agriculture, education, sport, and manufacturing industries. As of 15 March 2021, COVID-19 has infected 119,603,761 people and 2,649,722 people have died, as stated by the World Health Organization [1]. In 2021, there has been a significant increase in cases, compared to the previous year. March 2020, the world community had confirmed 118,000 people were infected and 4291 had died in 114 countries, as declared by the World Health Organization [2]. There has been a significant increase of more than 1000% within one year. Many countries, including Indonesia, are trying to stop the spread of the COVID19 pandemic by implementing a lockdown policy [3]. The implementation of Sustainability 2021, 13, 5460.
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