The influence of supply chain quality integration on operational performance through innovation quality integration

Abstract

Sanitary and product manufacturing companies' care in Indonesia is increasingly challenging to carry out production due to limitations caused by the lockdown during the pandemic. The conditions demanded very high and required fast distribution mobility. The company maintains product quality by established standards according to specifications, but the production process time is limited. To maintain product quality, companies must retain supply chain quality integration and innovation quality integration to support Operational Performance. The research uses manufacturing companies focusing on plastic companies with bottle and tube production related to supply packaging health protocol products. Analysis to answer the research hypothesis uses the software SmartPLS. The study results found that internal supply chain quality integration by integrated manufacturing processes positively and significantly affects supplier and customer quality integration. Supply chain integration, which consists of supplier quality integration, internal quality integration, and customer quality integration, impacts increasing product innovation and the number of new products. Supply chain quality integration and innovation quality integration directly influence operation performance. This research enlightens company managers on improving internal capabilities and establishing synergy with suppliers and customers to create innovation, aiming to increase operational performance to compete with the global market and face market fluctuations. Research makes a theoretical contribution to quality development and supply chain integration.