The Effect of Information Technology Implementation on Supply Chain Performance through Information Sharing and Supply Chain Collaboration

Abstract

The Covid-19 pandemic has resulted in a slowdown in the global economy, and the Indonesian economy has also been affected. The implementation of industry 4.0 is considered the right strategy to revitalize the manufacturing sector. This study aims to determine and understand the effect of information technology implementation on supply chain performance through information sharing and supply chain collaboration. This study uses a quantitative approach to measure an independent variable effect on mediation and dependent variables to test the predetermined hypotheses. The data was collected using a non-probability sampling technique with a purposive sampling method through a questionnaire instrument with the total number of respondents of 70 manufacturers in Surabaya. Then, the data were analyzed using Partial Least Square software and Structural Equation Modeling based on components or variants. The results indicate that the relationship between supply chain collaboration and information sharing creates competitive advantages. Consequently, the existence of precise, accurate, and qualified information can facilitate joint decision-making. Furthermore, the increasing adoption of supply chain collaboration with information technology can improve company performance. In conclusion, a manufacturing company can maintain its supply chain performance during the Covid-19 pandemic by implementing information technology, information sharing and collaboration with partners in a supply chain. This study provides insight and guidance for managers on ways to improve supply chain performance. This study can also contribute to current research in supply chain management theory.