MODERATION EFFECT OF STRATEGIC INFORMATION SYSTEM DEVELOPMENT ON THE RELATIONSHIP SOCIAL SUSTAINABILITY IN THE SUPPLY CHAIN AND FIRM PERFORMANCE

Abstract

This paper aims to explore the determinants of social sustainability in the supply chain (SSSC) of the company and examine the role of strategic information systems development as moderating variables in the relationship of SSSC and firm performance. The research setting used a sample of small and medium sized companies of “Batik Tulis” in Bantul Regency, using a sample of 106 SMEs of natural color batik. Testing the hypothesis in this study using hierarchical regression analysis techniques. The results of the study proved that determinant variables such as environmental uncertainty, regulation of environmentally friendly proved to have a significant effect on SSSC, while interdependency determinant variables consisting of three dimensions namely interdependency task, interdependency goal and interdependency reward identified that the three dimensions had no significant effect on SSSC. While the influence of SSSC on firm performance proved to have a significant effect, also the ability of the strategic information system development variable to prove significant was able to strengthen SSSC's influence on firm performance. The results of this study have a theoretical contribution to the development of institutional theory and dynamic capability theory because the research is able to produce business modeling that essential role of strategic information systems development as a strategic effort of SMEs in order to increase the influence of SSSC capability. More specifically, the results of the study provide empirical evidence about the concept of social sustainability in supply chain (SSSC) in order to develop a new theory of Sustainability Supply Chain Management. Keywords: Social Sustainability in Supply Chain (SSSC); Determinants of SSSC; Firm Performance; strategic information system; Hierarchal Moderation Regression