Supply Chain Integration Enables Resilience, Flexibility, and Innovation to Improve Business Performance in COVID-19 Era

Abstract

The COVID-19 pandemic has brought about a sudden change from normal conditions to disruption conditions, and industrial sectors have experienced eroded growth. In particular, the manufacturing industry experienced a slowdown due to the sudden disruption in supply and demand. This situation stimulates the manufacturing industry to recover from this current challenging disruption. This study investigates the impact of supply chain integration on business performance through supply chain resilience, supply chain flexibility, and innovation system in Indonesia’s manufacturing companies. Data collection has obtained as many as 470 questionnaires considered valid for further analysis. Data analysis used the partial least square (PLS) technique using smartPLS software version 3.0. The results show that supply chain integration affects innovation system, supply chain flexibility, and supply chain resilience because of its ability to share complete product information and share production planning. Innovation systems and supply chain flexibility enhance supply chain resilience through the ability to deal with sudden changes in customer demand and production problems. Supply chain integration improves business performance through innovation, supply chain flexibility, and supply chain resilience in the COVID-19 era. This research could be the best practice for managers in restoring manufacturing performance quickly. This study also contributes to the current research in supply chain management.

Multi-dimensional supply chain flexibility and supply chain resilience: the role of supply chain risks exposure

“…The findings of this study showed that MDSCF has a significant favorable influence on SCRES ( p < 0.01), corroborates prior research indicating that SCF influences to SCRES (Brusset and Teller 2017 ; Mandal 2017 ; Siagian et al 2021 ). SCRES is primarily concerned with a company's capacity to adapt rapidly to changing conditions.…”

Investigating the relationship between digital technologies, supply chain integration and firm resilience in the context of COVID-19

“…Furthermore, Wijaya ( 2020 ) proposed that supplier integration and customer integration promote the consistency of business processes between firms and their supply chain partners and that internal integration promotes the coordination of functions, directly driving the development of resilience capability. An empirical study in the context of COVID-19 further showed that supply chain integration can boost firm resilience and help firms to manage unexpected changes effectively (Siagian et al, 2021 ). While the link between supply chain integration and resilience seems increasingly positive, other researchers have found otherwise.…”

“…Visibility, flexibility and responsiveness are considered critical factors in mitigating the negative impact of disruptions on firms and are extremely important to enhancing firm resilience (Jüttner & Maklan, 2011 ; Ambulkar et al, 2015 ; Tukamuhabwa et al, 2015 ). In the current crisis, firms worldwide have been motivated to explore the importance of these factors to the development of resilience (Siagian et al, 2021 ). By introducing digital technologies into firm operations, visibility management of the whole product life cycle can be realized (Saxena & Al-Tamimi 2017 ; Ahmed et al, 2021 ).…”

Impact of integration management on performance in the UAE

“…The integration in the supply chain network is considered the critical factor in enhancing and improving performance. According to Siagian et al (2021), supply chain integration assists resilience, flexibility, and innovation to enhance business performance during the COVID-19 pandemic. According to Fitriyani and Fietroh (2021), SMEs must use factors such as communication and knowledge sharing skills to survive and achieve the expected goals in the COVID-19 times.…”