The effect of supplier innovation on supply chain agility: Evidence from coffee shops in Malang area

Abstract

With the agility of supply chain, competitive advantage can be maintained by business people by responding to environmental changes quickly and facing uncertainty. This research investigates the impact of supplier innovation on supply chain agility with information sharing and strategic resource as a mediator. At the same time testing the effect of information sharing and strategic sourcing on supply chain agility. The research sample used 65 coffee shops which were obtained from the response of the owner or manager of the coffee shop in Malang Area, known as the city of a million coffee shops. The rapid development of coffee shops in Malang Area demanding coffee businesses to respond quickly to changing consumer trends by maintaining the supply of coffee beans from the highest quality suppliers. This study was analyzed using structural equation modelling methods. The results revealed that supplier innovation significantly influences information sharing, strategic resources and supply chain agility. In addition, information sharing and strategic resources have a strong influence on supply chain agility. Thus, managers and or coffee shop owners need to establish good and sustainable relationships, especially to deal with changes in the business environment.