Proceedings of the Brawijaya International Conference on Economics, Business and Finance 2021 (BICEBF 2021)

Linking Innovation Orientation to Operational Performance: The Supply Chain Integration Mediating Effect

Authors
Bahrun Borahima1, *, Noermijati Noermijati2, Djumilah Hadiwidjojo3, Ainur Rofiq4
1, 2, 3, 4Brawijaya University, Indonesia.
*Corresponding author. Email: bahrunb@student.ub.ac.id / bahrunb@gmail.com
Corresponding Author
Bahrun Borahima
Available Online 28 January 2022.
DOI
10.2991/aebmr.k.220128.017How to use a DOI?
Keywords
Dynamic Capabilities View; Supply Chain Integration; Innovation Orientation; Operational Performance; Resource Based View
Abstract

This study addresses four research questions: 1) Does Innovation orientation become an antecedent of Supply chain integration (SCI)? 2) Does SCI affect on Operational performance (OP)? 3) Does Innovation orientation (IO) directly affect OP? 4) Is the relationship between IO and OP mediated by SCI? Accordingly, theoretical perspectives were used to advance a conceptual model and devised hypotheses using the Resource base view and Dynamic capabilities view. This study offered relationships among IO, SCI, and OP and direct relationships between IO and OP. A model was examined and developed examining these relationships in general in the strategic defense industry consisting of state own and non-state own enterprises; including joint ventures, foreign investment and family businesses enterprises established particularly in Indonesia. This research employed a quantitative approach through surveys during the pandemic of Covid-19. Questionnaires were used to collect primary and secondary data from various sources. Through a census of 41 organizational units classified as companies producing defense and security equipment of strategic defense industry groups in Indonesia, 80% of the companies have contributed to the surveys. Data was analyzed using PLS SEM and SPSS to analyze and determine the relationships and effects among variables. Findings show that: (1) IO as an antecedent effect significantly and positively on SCI; (2) Supply chain integration has positive and significant effect on Operational performance; (3) IO effects positively and significantly on OP; (4) IO effects effect on OP through SCI positively and significantly. IO’s effect as resource and SCI as vigorous capability improves OP significantly. The strategic operations SCI model is able to advance OP with IO as antecedent.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the Brawijaya International Conference on Economics, Business and Finance 2021 (BICEBF 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
28 January 2022
ISBN
978-94-6239-524-4
ISSN
2352-5428
DOI
10.2991/aebmr.k.220128.017How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Bahrun Borahima
AU  - Noermijati Noermijati
AU  - Djumilah Hadiwidjojo
AU  - Ainur Rofiq
PY  - 2022
DA  - 2022/01/28
TI  - Linking Innovation Orientation to Operational Performance: The Supply Chain Integration Mediating Effect
BT  - Proceedings of the Brawijaya International Conference on Economics, Business and Finance 2021 (BICEBF 2021)
PB  - Atlantis Press
SP  - 127
EP  - 135
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220128.017
DO  - 10.2991/aebmr.k.220128.017
ID  - Borahima2022
ER  -