Effect of Key User Empowerment, Purchasing Strategy, Process Integration,Production System to Operational Performance

Abstract

This study examines the influence of key user empowerment on the operational performance through the mediating role of process integration, purchasing strategy and production system. The questionnaires were distributed to 120 manufacturing companies domiciled in East Java Region. Of the 120, 70 questionnaires are valid for further analysis. Data analysis used Partial Least Square (PLS) version 3.0. The finding are as follows: Key user empowerment affects the process integration. Key user empowerment influence the purchasing strategy. Process integration affects the purchasing. Process integration also influence the production system. Purchasing strategy provide support in the company's production system. Process Integration affects the company's operational performance. Purchasing strategy does not affect the operational performance. Purchasing strategy has an impact on company performance through a production system. The production system provides an increasein company performance. In summary, the key user empowerment has a direct and indirect impact on operational performance through process integration, purchasing strategy, and the production system. This study enriches the current research in supply chain management and provide an insight for the manager in improving the operational performance.

Supply Chain Digitalization, Green Supply Chain, Supply Chain Resilience Toward Competitiveness and Msmes Performance

“…Chhabra et al (2021) show that companies that use the Internet to streamline supply chain processes will benefit from reduced transaction costs, smoother information flow, and more responsiveness to demand. The use of IT in supply chain management is closely related to changes that occur from old systems to new systems in the digitalization era (Tarigan et al, 2019). Digitalization in the supply chain is an exemplary process for increasing visibility and transparency across the supply chain, as it will facilitate the rapid collection and sharing of information for all stakeholders.…”

“…These studies emphasize the importance of a strong supply chain to measure a company's competitive advantage. Companies with high supply chain resilience will be strong and grow significantly in crises, thereby minimizing losses (Tarigan et al, 2018;Tarigan et al, 2019;Zhou et al, 2022). Next, innovation sustainability in business operations will help companies win the competition through productivity and profits.…”

The Effect of Top Management Commitment on Firm Performance through the Green Purchasing and Supplier Relationship Management in 3-Star Hotel Industry in Surabaya

“…A clear definition of firm performance is needed in clarifying the multidimensional relationship between SCI and firm performance. Existing supply chain integration is increasingly focused on testing the benefits of supply chain integration (SCI) associated with operations and business together (Tarigan et al, 2019;Jiputra et al, 2020). Operational performance and business performance are two measures of firm performance.…”

Contemporary Research on Business and Management

“…Companies' relationship with suppliers is the strongest cooperation in the value chain or supply chain (Tarigan et al 2019a). Companies' purchasing strategy impacts the sustainability of processes on an ongoing basis.…”

“…According to Al-Shboul et al (2018), the integration built by cooperation with external parties will provide companies adequate flexibility. Tarigan et al (2019a) state that purchasing strategy can positively impact process integration and improve both parties' performance. Companies determine the purchasing strategy by taking into account the strength of the relationship with their suppliers.…”