Determinants of company performance with supply chain risk management as an intervening variable: Empirical studies on BUMN construction in Indonesia
List of Authors
  • Murti Widyaningsih , Tri Widyastuti

Keyword
  • Supply Chains Risk Management, Trust, Contractor Vendor Relationship, Top Management Involvement, and Company Performance

Abstract
  • BUMN construction companies are required to be competent to maintain the quality of the company by having good performance. Due to the phenomenon of declining financial performance and the phenomenon of outsourcing, a system is needed which is a synergy between SCM and risk management, that is Supply Chain Risk Management (SCRM). This study aims to further explore the supply chain risks that occur in state-owned construction companies in Indonesia by developing a system that can control risk and play an important role in Vendor Trust, Contractor-Vendor Relationship and Top Management Involvement to measure company performance. The data collection was carried out using a survey method using questionnaires and interviews. Respondents were selected using the purposive sampling method, that experts on Indonesian BUMN construction projects using the Smart PLS analysis method. The results of the study concluded that Vendor Trust has no effect on Supply Chain Risk Management. This is related to the existence of Law No.2 of 2017 reinforced by Minister of BUMN No.08 of 2019 which regulates the readiness of database infrastructure and Vendor criteria. Based on this regulation, a Vendor Management System was created that applies ratings, sanctions and Blacklists to Vendors, if there are errors or even a shortage of Vendor expertise documents, Unverified will occur and the impact on billing to contractors will be hampered so that trust can increase mutually beneficial relationships in long-term partnerships hard to do. Contractor-Vendor Relationship and Top management Involvement influence SCRM. Vendor trust, Contractor-Vendor Relationship and Top Management Involvement influence company performance after being mediated by Supply Chain Risk Management.

Reference
  • 1. Abdullah, Z, & Musa, R, 2014, The Effect of trust and information sharing on relationship commitment in supply chain management, Procedia-Social and Behavioral Sciences 130, 266-272.

    2. Breuer, C., Siestrup, G., Haasis, H. D. & Wildebrand, H. (2013). Collaborative risk management in sensitive logistics nodes. Team Performance Management, 19(7/8)

    3. Chen, I.J. and Paulraj, A. (2004) Towards a Theory of Supply Chain Management: The Constructs and Measurements. Journal of Operations Management, 22, 119. http://dx.doi.org/10.1016/j.jom.2003.12.007

    4. Dyer, J. H & Chu, W. (2000). The determinants of trust in supplier-automaker relationship in the U.S., Japan, and Korea. Journal of International Business Studies, 31(2), 259– 285.

    5. Han, Tae, Hee, (2017), Pengaruh Supplier Trust, Top Management Involvement terhadap Supply Chain Risk Management melalui Buyer-Supplier Relationship (Studi Kepada perusahaan Manufaktur dari Korea di Jawa Timur dan Jawa Tengah), Petra Business & Management Review Vol.3, N0.2,2017

    6. Hollstein C., H. F. (2013), Supply Chain Risk Management, Log Forum LogForum, 9(1), 21-25.

    7. Mary C. Holcomb, Serhiy Y. Ponomarov & Karl B. Manrodt, 2011, “The Relationship of Supply Chain Visibility to firm Performance”. Supply chain forum : An International Jurnal volume 12, 2011 Page 32-45.

    8. Schaufelberger (2009), Construction Operations Post-construction service Support activities Firm infrastructure Human resource management source, University of Washington-Seattle

    9. Szezepanski, R. & Szczepanska-Swiatowiec, J.(2012). Risk management system in business relationship: Polish case studies. Industrial Marketing Management, 41(5), 790-799.

    10. Waters, D, 2007, Supply Chain Risk Management: Vulnerability and Resilience in Logistics, Kogan Page Publisher.

    11. Zhao, L., Huo, B., Sun, L. and Zhao, X. (2013), “The impact of supply chain risk on supply chain integration and company performance: a global investigation”, Supply Chain Management: An international Journal,Vol. 18 No. 2, pp. 115-131