The Role of Dimensions of Supply Chain Management on Operational Performance of Indonesian Smes During Digital Era

Abstract

The purpose of this study is to analyze the relationship of variables between the sharing of information on operational performance, the relationship of variables between cooperation and operational performance, and the relationship of variables between the integration process and operational performance.The type of research used in this research is correlational research with a quantitative approach. Correlation research is research that aims to determine the effect or relationship between two or more variables. While the approach used is a quantitative approach. The population used in this research is SMEs operational manager in Banten Indonesia. The sample is part of the population which consists of several members selected from the population. According to Hair et al. (2017) the sample in this study was determined by the non-probability sampling method, which is a sampling technique that does not provide equal opportunities or opportunities for every member of the population to be a sample, using purposive sampling technique. The process of distributing research questionnaires was carried out through an online survey n. The sample or respondents used in this study were 500 SMEs managers in Banten, Indonesia. Data analysis used SmartPLS 3.0 software.The results of the SEM (Structural Equation Modeling) test using Partial Least Square, it can be concluded that information sharing has a positive effect on operational performance. The influence of the construct of information sharing is positive and significant. Long-term relationship has a positive effect on operational performance. Cooperation has a positive effect on operational performance. The integration process has a positive effect on operational performance. SMEs need to carry out optimal supply chain management to improve their performance. The importance of raising this theme is that SME owners and managers can survive in the face of increasingly fierce business competition, it is hoped that with improved supply chain management and competitive advantages applied in developing performance processes so that can promote better survival in SMEs.