Strategic Consensus Between Functions and the Role of Supply Chain Technology as Moderator

Kusmantini, Titik and Haryono, Tulus and Untoro, Wisnu and Setiawan, Ahmad Ikhwan (2018) Strategic Consensus Between Functions and the Role of Supply Chain Technology as Moderator. Journal of Industrial Engineering and Management, 11 (4). pp. 735-748. ISSN 2013- 8423

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Abstract

Purpose: This study aims to identify whether the higher degree of fit between supply chain strategy and manufacturing strategy will result in a better performance. When the choice of supply chain technology (integrative SC technology and functional SC technology) to support the alignment of the strategy will then strengthen the relationship between degree of fit with performance. Design/methodology/approach: Strategic alignment test between the functions uses 102 SMEs (Small and Medium Enterprises) in Yogyakarta Province, Indonesia with purposive sampling technique. The data are collected by distributing questionnaires to the companies that qualify the criteria of the sample, respondent target are procurement manager or production manager. Findings: Samples are grouped into two ideal types of strategies used mean split technique. 53 SMEs adopt ASCS (Agile Supply Chain Strategy) and 49 SMEs adopt LSCS (Lean Supply Chain Strategy). Two of the strategy groups have a low value of misfit score; it means that the degree of fit between supply chain strategy and manufacturing strategy is high. The result of the hierarichal moderated regression test shows that a regression coefficient values is negative both in LSCS and ASCS group, but the hypothesis test is only proven on ASCS group while LSCS group is not significant. The test of the moderate effect of the choice of SC technology on the two strategy groups is proved to be significant. Research limitations/implications: (1) The empirical finding of bivariate fit model test encourage a research space to explore the other contingent variable besides manufacturing strategy. For example, other function or corporate strategy. (2) The measurement of the company performance becomes the objective of the success of the alignment of supply chain strategy with the contingent variable which should be specified using the supply chain performance. Originality/value: The use of Euclidean distance formula is expected to cover the technical limitations of contingency test by using interaction approach between the complex variables; the value of misfit score reflects the extent to which program alignment between the company functions. Keywords: misfit score, euclidean distance, mean split, contingent variable, simple regression technique

Item Type: Article
Uncontrolled Keywords: misfit score, euclidean distance, mean split, contingent variable, simple regression technique
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Law, Arts and Social Sciences > School of Management
Depositing User: Dr.SE,MSi Titik Kusmantini
Date Deposited: 04 Aug 2021 06:24
Last Modified: 04 Aug 2021 06:28
URI: http://eprints.upnyk.ac.id/id/eprint/26412

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