Abstract

This study examines the effect of IT application on the supply chain performance through green supply chain management in the Food and Beverage Industry in Surabaya. Data collection is conducted using questionnaires designed with a five-point Likert scale. From 70 questionnaires distributed, 64 were considered valid for further analysis. Data analysis uses the SEM-PLS technique with SmartPLS software version 3.0. This study assesses the extent to which the corporate apply IT and adopt the green supply chain management in improving the supply chain performance. The results of this study indicate that the use of IT applications influences supply chain performance. The IT application affects the green supply chain management. Green supply chain management affects the supply chain management. One of the interesting findings is that the IT application indirectly affects supply chain performance through green supply chain management. The findings of this study provide an insight for the manager on how to improve supply chain management. This research also contributes to the on-going research in the field of supply chain management.

Highlights

  • One of the obstacles facing industries in Indonesia today is that they do not have an efficient supply chain system

  • The present study was designed to examine the effect of IT application on supply chain performance through green supply chain management in the food and beverage industry in Surabaya

  • IT application has a positive effect on green supply chain management

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Summary

Introduction

One of the obstacles facing industries in Indonesia today is that they do not have an efficient supply chain system. The supply chain performance assesses the extent to which the organization fulfills the customer order in terms of the following five indicators: reliability, responsiveness, agility, cost, and asset management efficiency [3]. This study assesses the IT application as the extent to which the organization has applied the information technology in the following four functions: electronic procurement, electronic data interchange (EDI), enterprise resource planning (ERP), and electronic order fulfillment [10] Another trending issue in business activities is the threat due to the environmental damage caused by industrial activities. In the face of the challenges of pollution of industrial activities to the environment, green supply chain management emerged as an innovative approach to supply chains that pays attention to environmental sustainability. H3: Green supply chain management affects supply chain performance H4: IT application has an indirect effect on supply chain performance through the green supply chain management

Research methods
Research population and sample
Measurement model
Reliability test
Discriminant validity
Findings
Hypothesis testing
Conclusion
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