Abstract
Since 2015, the Association of Southeast Asian Nations (ASEAN) single market or popularly known as ASEAN Economic Community (AEC) has been implemented. AEC provides opportunities to improve the economy of the region through the expansion of the international market for competitive products. With trade barriers are getting smaller, it is expected that many local products, especially those produced by SMEs could penetrate the ASEAN market. The main purposes of this study is to prove that the long-term relationships and the performance of the supply chain is an essential element in generating the company's performance. More specifically, the study aims to to analyze the direct effect of the long-term relationship on supply chain management and indirect effect trough the mediation of information technology, supply chain integration and information sharing.. This study was conducted on 194 respondents (SMEs) in Malang, East Java (Indonesia) using analytical tools of Structural Equation Modelling (SEM). The results showed that the long-term relationship in SMEs directly and significantly affect the use of information technology, information sharing, and integration of supply chain and supply chain performance. In addition, long-term relationship indirectly and signifiantly affect the performance of the supply chain through the infromation technology, supply chain integration and information sharing. However, the direct effect of information sharing on supply chain performance is not significant. These results demonstrate that the long-term relationships are crucial for SMEs in Malang to face the increasingly fierce competition in the future.
Highlights
Since 2015, the Association of Southeast Asian Nations (ASEAN) single market or popularly known as ASEAN Economic Community (AEC) has been implemented
The main purpose of this research is to prove that the long-term relationships and the performance of the supply chain is an essential element in generating the company's performance effectively and efficiently which Li et al that it requires the mediation of information technology, information sharing and supply chain integration [1]
Based on the development of theoretical concepts and previous research can be explained that the role of information technology, long-term relationship, supply chain integration and information sharing have alleged effect on supply chain performance
Summary
Since 2015, the ASEAN single market or popularly known as ASEAN Economic Community (AEC) has been implemented. The implementation of the AEC will be a challenge for local government in economic development efforts, and more the empowerment of SMEs in Indonesia to compete in the ASEAN market. Chain management can produce efficient and effective results by implementing a long-term relationship, information technology, integrated supply chain, and information sharing. Those competitive advantage factors should be implemented by the SMEs in order to have competitive advantages. The main purpose of this research is to prove that the long-term relationships and the performance of the supply chain is an essential element in generating the company's performance effectively and efficiently which Li et al that it requires the mediation of information technology, information sharing and supply chain integration [1]
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