The effect of supply chain innovation and e-procurement implementation on supply chain performance of manufacturing organization

Abstract

The purpose of this study is to analyze the effects of the e-procurement on supply chain performance and supply chain innovation. The study also investigates the effect of supply chain innovation on supply chain performance. The research method is a quantitative survey, and the research data is obtained by distributing online questionnaires on a scale from 1 to 7 distributed via social media. Respondents in this study are 250 managers of manufacturing organizations in Indonesia determined by simple random sampling method. The model used in this study is the causality model and to test the hypotheses proposed in this study, the analytical technique used is Structural Equation Modeling (SEM) with SmartPLS software as a data analysis tool. The independent variable of this research is e-procurement implementation, supply chain innovation and the dependent variable is supply chain performance. The stages of data analysis are validity test, reliability test and hypothesis testing. The results of this study indicate that the application of e-procurement had a positive and significant effect on supply chain performance, the application of e-procurement had a positive and significant effect on supply chain innovation, supply chain innovation had a positive and significant effect on supply chain performance and supply chain innovation was able to mediate the effect of e-procurement on supply chain performance.