Share:


Invigorating supply chain performance in small medium enterprises: exploring knowledge sharing as moderator

Abstract

Purpose – This research aimed to evaluate information sharing as a moderating component and examine supply chain performance, including collaboration, capabilities, and innovation. Particularly in the SME sector, since the significance of collaboration and opportunity in supply chains as an SCM trigger is still underdeveloped.
Research methodology – To test the hypotheses, data were collected from 179 SMEs in Indonesia, involving 537 managers and assistant managers, and analyzed using partial least square modeling.
Findings – The result of cooperation with supply chain partners has led to the gradual improvement of capabilities and innovations, such as improved processes, more efficient operations, better quality, and lower costs. It has also resulted in radical innovation, including introducing new technologies and a change in strategy; thus, it could develop and improve the ability to innovate. Finally, the results helped managers with strategic planning and prioritizing supply chain collaboration to improve capabilities, innovation, and performance.
Research limitations – generalizability is limited because of sampling constraints.
Practical implications – the results helped managers design strategic planning and prioritize supply chain collaboration to improve capabilities, innovation, and performance.
Originality/Value – to the extent of our knowledge, this study is the pioneer investigation into the supply chain in SMEs value-chains in an emerging country from a holistic perspective.

Keyword : supply chain performance, innovation performance, knowledge sharing, SMEs

How to Cite
Arsawan, W. E., Koval, V., Suhartanto, D., Babachenko, L., Kapranova, L., & Suryantini, N. P. S. (2023). Invigorating supply chain performance in small medium enterprises: exploring knowledge sharing as moderator. Business, Management and Economics Engineering, 21(1), 1–18. https://doi.org/10.3846/bmee.2023.17740
Published in Issue
Mar 24, 2023
Abstract Views
1635
PDF Downloads
1555
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Aboelmaged, M. (2018). The drivers of sustainable manufacturing practices in Egyptian SMEs and their impact on competitive capabilities: A PLS-SEM model. Journal of Cleaner Production, 175, 207–221. https://doi.org/10.1016/j.jclepro.2017.12.053

Anser, M. K., Yousaf, Z., Khan, A., & Usman, M. (2020). Towards innovative work behavior through knowledge management infrastructure capabilities: Mediating role of functional flexibility and knowledge sharing. European Journal of Innovation Management, 24(2), 461–480. https://doi.org/10.1108/EJIM-09-2019-0250

Arsawan, I. W. E., Hariyanti, N. K. D., Atmaja, I. M. A. D. S., Suhartanto, D., & Koval, V. (2022a). Developing organizational agility in SMEs: An investigation of innovation’s roles and strategic flexibility. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 149. https://doi.org/10.3390/joitmc8030149

Arsawan, I. W. E., Koval, V., Duginets, G., Kalinin, O., & Korostova, I. (2021). The impact of green innovation on environmental performance of SMEs in an emerging economy. E3S Web of Conferences, 255, 1012. https://doi.org/10.1051/e3sconf/202125501012

Arsawan, I. W. E., Koval, V., Suhartanto, D., Harbar, Z., & Maslennikov, Y. (2022b). Employee-driven innovation capability: The role of knowledge, creativity, and time sufficiency. Intellectual Economics, 16(2), 138–165. https://doi.org/10.13165/IE-22-16-2-08

Asamoah, D., Agyei-Owusu, B., Andoh-Baidoo, F. K., & Ayaburi, E. (2020). Inter-organizational systems use and supply chain performance: Mediating role of supply chain management capabilities. International Journal of Information Management, 58, 102195. https://doi.org/10.1016/j.ijinfomgt.2020.102195

Aslam, H., Blome, C., Roscoe, S., & Azhar, T. M. (2020). Determining the antecedents of dynamic supply chain capabilities. Supply Chain Management: An International Journal, 25(4), 427–442. https://doi.org/10.1108/SCM-02-2019-0074

Asree, S., Cherikh, M., & Gopalan, S. (2018). The impact of supply chain responsiveness and strategic supply chain collaboration on innovation performance. International Journal of Business Performance and Supply Chain Modelling, 10(2), 131–145. https://doi.org/10.1504/IJBPSCM.2018.098306

Attia, A., & Essam Eldin, I. (2018). Organizational learning, knowledge management capability and supply chain management practices in the Saudi food industry. Journal of Knowledge Management, 22(6), 1217–1242. https://doi.org/10.1108/JKM-09-2017-0409

Baah, C., Acquah, I. S. K., & Ofori, D. (2021a). Exploring the influence of supply chain collaboration on supply chain visibility, stakeholder trust, environmental and financial performances: A partial least square approach. Benchmarking: An International Journal, 29(1), 172–193. https://doi.org/10.1108/BIJ-10-2020-0519

Baah, C., Opoku Agyeman, D., Acquah, I. S. K., Agyabeng-Mensah, Y., Afum, E., Issau, K., Ofori, D., & Faibil, D. (2021b). Effect of information sharing in supply chains: Understanding the roles of supply chain visibility, agility, collaboration on supply chain performance. Benchmarking: An International Journal. https://doi.org/10.1108/BIJ-08-2020-0453

Bravo, M. I. R., Montes, F. J. L., & Moreno, A. R. (2017). Open innovation in supply networks: An expectation disconfirmation theory perspective. Journal of Business & Industrial Marketing.

Chand, P., Thakkar, J. J., & Ghosh, K. K. (2020). Analysis of supply chain performance metrics for Indian mining & earthmoving equipment manufacturing companies using hybrid MCDM model. Resources Policy, 68, 101742. https://doi.org/10.1016/j.resourpol.2020.101742

Chen, L., Zhao, X., Tang, O., Price, L., Zhang, S., & Zhu, W. (2017). Supply chain collaboration for sustainability: A literature review and future research agenda. International Journal of Production Economics, 194, 73–87. https://doi.org/10.1016/j.ijpe.2017.04.005

Chin, W., Cheah, J. H., Liu, Y., Ting, H., Lim, X. J., & Cham, T. H. (2020). Demystifying the role of causal-predictive modeling using partial least squares structural equation modeling in information systems research. Industrial Management and Data Systems, 120(12), 2161–2209. https://doi.org/10.1108/IMDS-10-2019-0529

Cui, L., Gao, M., Dai, J., & Mou, J. (2020). Improving supply chain collaboration through operational excellence approaches: An IoT perspective. Industrial Management & Data Systems. https://doi.org/10.1108/IMDS-01-2020-0016

Damert, M., Koep, L., Guenther, E., & Morris, J. (2020). Stakeholders and socially responsible supply chain management: The moderating role of internationalization. Sustainability Accounting, Management and Policy Journal, 12(4), 667–694. https://doi.org/10.1108/SAMPJ-03-2019-0092

Dey, P. K., Yang, G.-l., Malesios, C., De, D., & Evangelinos, K. (2021). Performance management of supply chain sustainability in small and medium-sized enterprises using a combined structural equation modelling and data envelopment analysis. Computational Economics, 58(3), 573–613. https://doi.org/10.1007/s10614-019-09948-1

do Canto, N. R., Bossle, M. B., Vieira, L. M., & De Barcellos, M. D. (2020). Supply chain collaboration for sustainability: A qualitative investigation of food supply chains in Brazil. Management of Environmental Quality: An International Journal. https://doi.org/10.1108/MEQ-12-2019-0275

Dung, T. Q., Bonney, L. B., Adhikari, R. P., & Miles, M. P. (2020). Entrepreneurial orientation, knowledge acquisition and collaborative performance in agri-food value-chains in emerging markets. Supply Chain Management, 25(5), 521–533. https://doi.org/10.1108/SCM-09-2019-0327

Ferraris, A., Giachino, C., Ciampi, F., & Couturier, J. (2021). R&D internationalization in medium-sized firms: The moderating role of knowledge management in enhancing innovation performances. Journal of Business Research, 128, 711–718. https://doi.org/10.1016/j.jbusres.2019.11.003

Flöthmann, C., Hoberg, K., & Gammelgaard, B. (2018). Disentangling supply chain management competencies and their impact on performance: A knowledge-based view. International Journal of Physical Distribution and Logistics Management, 48(6), 630–655. https://doi.org/10.1108/IJPDLM-02-2017-0120

Fosso Wamba, S., Queiroz, M. M., & Trinchera, L. (2020). Dynamics between blockchain adoption determinants and supply chain performance: An empirical investigation. International Journal of Production Economics, 229, 107791. https://doi.org/10.1016/j.ijpe.2020.107791

Freeman, R. E. (1984). Strategic management: A stakeholder approach (Pitman Series in Business and Public Policy). Pitman.

Freeman, R. E., Harrison, J. S., & Zyglidopoulos, S. (2018). Stakeholder theory: Concepts and strategies. Cambridge University Press. https://doi.org/10.1017/9781108539500

Gupta, H., Kusi-Sarpong, S., & Rezaei, J. (2020). Barriers and overcoming strategies to supply chain sustainability innovation. Resources, Conservation and Recycling, 161, 104819. https://doi.org/10.1016/j.resconrec.2020.104819

Hair, Jr. J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). Sage Publications.

Hair Jr, J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: Updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107–123. https://doi.org/10.1504/IJMDA.2017.087624

Henseler, J., & Fassott, G. (2010). Testing moderating effects in PLS path models: An illustration of available procedures. In Handbook of partial least squares (pp. 713–735). Springer. https://doi.org/10.1007/978-3-540-32827-8_31

Hong, J., Liao, Y., Zhang, Y., & Yu, Z. (2019a). The effect of supply chain quality management practices and capabilities on operational and innovation performance: Evidence from Chinese manufacturers. International Journal of Production Economics, 212, 227–235. https://doi.org/10.1016/j.ijpe.2019.01.036

Hong, J., Zheng, R., Deng, H., & Zhou, Y. (2019b). Green supply chain collaborative innovation, absorptive capacity and innovation performance: Evidence from China. Journal of Cleaner Production, 241, 118377. https://doi.org/10.1016/j.jclepro.2019.118377

Hu, W., Shou, Y., Kang, M., & Park, Y. (2020). Risk management of manufacturing multinational corporations: The moderating effects of international asset dispersion and supply chain integration. Supply Chain Management, 25(1), 61–76. https://doi.org/10.1108/SCM-01-2019-0009

Huang, Y. C., Borazon, E. Q., & Liu, J. M. (2021). Antecedents and consequences of green supply chain management in Taiwan’s electric and electronic industry. Journal of Manufacturing Technology Management, 32(5), 1066–1093. https://doi.org/10.1108/JMTM-05-2020-0201

Huang, Y., Han, W., & Macbeth, D. K. (2020). The complexity of collaboration in supply chain networks. Supply Chain Management, 25(3), 393–410. https://doi.org/10.1108/SCM-11-2018-0382

Huge-Brodin, M., Sweeney, E., & Evangelista, P. (2020). Environmental alignment between logistics service providers and shippers – a supply chain perspective. International Journal of Logistics Management, 31(3), 575–605. https://doi.org/10.1108/IJLM-04-2019-0101

Jafari, T., Zarei, A., Azar, A., & Moghaddam, A. (2021). The impact of business intelligence on supply chain performance with emphasis on integration and agility – a mixed research approach. International Journal of Productivity and Performance Management. https://doi.org/10.1108/IJPPM-09-2021-0511

Jimenez-Jimenez, D., Martínez-Costa, M., & Sanchez Rodriguez, C. (2019). The mediating role of supply chain collaboration on the relationship between information technology and innovation. Journal of Knowledge Management, 23(3), 548–567. https://doi.org/10.1108/JKM-01-2018-0019

Kähkönen, A. K., Lintukangas, K., Ritala, P., & Hallikas, J. (2017). Supplier collaboration practices: Implications for focal firm innovation performance. European Business Review, 29(4), 402–418. https://doi.org/10.1108/EBR-04-2016-0058

Kazmi, S. W., & Ahmed, W. (2021). Understanding dynamic distribution capabilities to enhance supply chain performance: A dynamic capability view. Benchmarking: An International Journal. https://doi.org/10.1108/BIJ-03-2021-0135

Kilubi, I., & Rogers, H. (2018). Bridging the gap between supply chain risk management and strategic technology partnering capabilities: Insights from social capital theory. Supply Chain Management, 23(4), 278–292. https://doi.org/10.1108/SCM-02-2017-0091

Kleine Jäger, J., & Piscicelli, L. (2021). Collaborations for circular food packaging: The set-up and partner selection process. Sustainable Production and Consumption, 26, 733–740. https://doi.org/10.1016/j.spc.2020.12.025

Kumar, V., Jabarzadeh, Y., Jeihouni, P., & Garza-Reyes, J. A. (2020). Learning orientation and innovation performance: The mediating role of operations strategy and supply chain integration. Supply Chain Management, 25(4), 457–474. https://doi.org/10.1108/SCM-05-2019-0209

Lee, C. W., Kwon, I. G., & Severance, D. (2007). Relationship between supply chain performance and degree of linkage among supplier, internal integration, and customer. Supply Chain Management: An International Journal, 12(6), 444–452. https://doi.org/10.1108/13598540710826371

Lei, H., Gui, L., & Le, P. B. (2020). Linking transformational leadership and frugal innovation: The mediating role of tacit and explicit knowledge sharing. Journal of Knowledge Management, 25(7), 1832–1852. https://doi.org/10.1108/JKM-04-2020-0247

Li, G. (2020). The impact of supply chain relationship quality on knowledge sharing and innovation performance: Evidence from Chinese manufacturing industry. Journal of Business and Industrial Marketing. https://doi.org/10.1108/JBIM-02-2020-0109

Liao, S. H., & Kuo, F. I. (2014). The study of relationships between the collaboration for supply chain, supply chain capabilities and firm performance: A case of the Taiwans TFT-LCD industry. International Journal of Production Economics, 156, 295–304. https://doi.org/10.1016/j.ijpe.2014.06.020

Liao, S.-H., Hu, D.-C., & Chen, S.-T. (2022). Supply chain integration, capability and performance – a business-to-business network cooperation. Journal of Business & Industrial Marketing, 37(5), 1127–1137. https://doi.org/10.1108/JBIM-10-2020-0467

Liao, Y., & Li, Y. (2019). Complementarity effect of supply chain competencies on innovation capability. Business Process Management Journal, 25(6), 1251–1272. https://doi.org/10.1108/BPMJ-04-2018-0115

Lin, H. F. (2017). Antecedents and consequences of electronic supply chain management diffusion: The moderating effect of knowledge sharing. International Journal of Logistics Management, 28(2), 699–718. https://doi.org/10.1108/IJLM-01-2016-0023

Lin, Y. S., & Chen, M. (2021). Implementing TRIZ with supply chain management in new product development for small and medium enterprises. Processes, 9(4), 614. https://doi.org/10.3390/pr9040614

Liu, W., Liang, Y., Wei, S., & Wu, P. (2020a). The organizational collaboration framework of smart logistics ecological chain: A multi-case study in China. Industrial Management and Data Systems. https://doi.org/10.1108/IMDS-02-2020-0082

Liu, W., Yan, X., Si, C., Xie, D., & Wang, J. (2020b). Effect of buyer-supplier supply chain strategic collaboration on operating performance: Evidence from Chinese companies. Supply Chain Management, 25(6), 823–839. https://doi.org/10.1108/SCM-12-2019-0430

Maldonado-Guzmán, G., Garza-Reyes, J. A., Pinzón-Castro, S. Y., & Kumar, V. (2020). Innovation capabilities and performance: Are they truly linked in SMEs? International Journal of Innovation Science, 11(1), 48–62. https://doi.org/10.1108/IJIS-12-2017-0139

Mandal, S. (2017). The influence of dynamic capabilities on hospital-supplier collaboration and hospital supply chain performance. International Journal of Operations and Production Management, 37(5), 664–684. https://doi.org/10.1108/IJOPM-05-2016-0249

Mandal, S., & Saravanan, D. (2019). Exploring the influence of strategic orientations on tourism supply chain agility and resilience: An empirical investigation. Tourism Planning & Development, 16(6), 612–636. https://doi.org/10.1080/21568316.2018.1561506

Nandi, M. L., Nandi, S., Moya, H., & Kaynak, H. (2020). Blockchain technology-enabled supply chain systems and supply chain performance: A resource-based view. Supply Chain Management, 25(6), 841–862. https://doi.org/10.1108/SCM-12-2019-0444

Nguyen, M. A. T., Lei, H., Vu, K. D., & Le, P. B. (2019). The role of cognitive proximity on supply chain collaboration for radical and incremental innovation: A study of a transition economy. Journal of Business & Industrial Marketing, 34(3), 591–604. https://doi.org/10.1108/JBIM-07-2017-0163

Parwita, G. B. S., Arsawan, I. W. E., Koval, V., Hrinchenko, R., Bogdanova, N., & Tamošiūnienė, R. (2021). Organizational innovation capability: Integrating human resource management practice, knowledge management and individual creativity. Intellectual Economics, 15(2), 22–45.

Rajaguru, R., & Matanda, M. J. (2019). Role of compatibility and supply chain process integration in facilitating supply chain capabilities and organizational performance. Supply Chain Management, 24(2), 315–330. https://doi.org/10.1108/SCM-05-2017-0187

Rungsithong, R., & Meyer, K. E. (2020). Trust and knowledge sharing in context: A study of international buyer-supplier relationships in Thailand. Industrial Marketing Management, 88, 112–124. https://doi.org/10.1016/j.indmarman.2020.04.026

Schmidt, C. G., & Wagner, S. M. (2019). Blockchain and supply chain relations: A transaction cost theory perspective. Journal of Purchasing and Supply Management, 25(4), 100552. https://doi.org/10.1016/j.pursup.2019.100552

Schwab, K. (2019). The global competitiveness report 2019. World Economic Forum. http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf

Seo, Y. J., Dinwoodie, J., & Kwak, D. W. (2014). The impact of innovativeness on supply chain performance: Is supply chain integration a missing link? Supply Chain Management, 19(5–6), 733–746. https://doi.org/10.1108/SCM-02-2014-0058

Shin, N., Park, S. H., & Park, S. (2019). Partnership-based supply chain collaboration: Impact on commitment, innovation, and firm performance. Sustainability, 11(2), 1–19. https://doi.org/10.3390/su11020449

Singhry, H. B. (2015). Effect of supply chain technology, supply chain collaboration and innovation capability on supply chain performance of manufacturing companies. Journal of Business Studies Quarterly, 7(2), 258–273.

Tenenhaus, M., Vinzi, V. E., Chatelin, Y.-M., & Lauro, C. (2005). PLS path modeling. Computational Statistics & Data Analysis, 48(1), 159–205. https://doi.org/10.1016/j.csda.2004.03.005

Trachenko, L., Lazorenko, L., Maslennikov, Y., Hrinchenko, Y., Arsawan, I. W. E., & Koval, V. (2021). Optimization modeling of business processes of engineering service enterprises in the national economy. Natsional’nyi Hirnychyi Universytet. Naukovyi Visnyk, 4, 165–171. https://doi.org/10.33271/nvngu/2021-4/165

Tsimoshynska, O., Koval, M., Kryshtal, H., Filipishyna, L., Arsawan, W. E., & Koval, V. (2021). Investing in road construction infrastructure projects under public-private partnership in the form of concession. Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu, 2, 184–192. https://doi.org/10.33271/nvngu/2021-2/184

Tukamuhabwa, B., Mutebi, H., & Kyomuhendo, R. (2021). Competitive advantage in SMEs: Effect of supply chain management practices, logistics capabilities and logistics integration in a developing country. Journal of Business and Socio-Economic Development. https://doi.org/10.1108/JBSED-04-2021-0051

Um, K.-H., & Kim, S.-M. (2019). The effects of supply chain collaboration on performance and transaction cost advantage: The moderation and nonlinear effects of governance mechanisms. International Journal of Production Economics, 217, 97–111. https://doi.org/10.1016/j.ijpe.2018.03.025

Wang, C., & Hu, Q. (2020). Knowledge sharing in supply chain networks: Effects of collaborative innovation activities and capability on innovation performance. Technovation, 94, 102010. https://doi.org/10.1016/j.technovation.2017.12.002

Yi, L., Wang, Y., Upadhaya, B., Zhao, S., & Yin, Y. (2021). Knowledge spillover, knowledge management capabilities, and innovation among returnee entrepreneurial firms in emerging markets: Does entrepreneurial ecosystem matter? Journal of Business Research, 130, 283–294. https://doi.org/10.1016/j.jbusres.2021.03.024

Yu, W., Chavez, R., Jacobs, M. A., & Feng, M. (2018a). Data-driven supply chain capabilities and performance: A resource-based view. Transportation Research Part E: Logistics and Transportation Review, 114, 371–385. https://doi.org/10.1016/j.tre.2017.04.002

Yu, Z., Golpîra, H., & Khan, S. A. R. (2018b). The relationship between green supply chain performance, energy demand, economic growth, and environmental sustainability: An empirical evidence from developed countries. LogForum, 14(4), 479–494. https://doi.org/10.17270/J.LOG.2018.304

Yuan, Y., Viet, N., & Behdani, B. (2019). The impact of information sharing on the performance of horizontal logistics collaboration: A simulation study in an agri-food supply chain. IFAC-PapersOnLine, 52(13), 2722–2727. https://doi.org/10.1016/j.ifacol.2019.11.619

Zaridis, A., Vlachos, I., & Bourlakis, M. (2021). SMEs strategy and scale constraints impact on agri-food supply chain collaboration and firm performance. Production Planning and Control, 32(14), 1165–1178. https://doi.org/10.1080/09537287.2020.1796136

Zimmermann, R., Ferreira, L. M. D. F., & Moreira, A. C. (2016). The influence of supply chain on the innovation process: A systematic literature review. Supply Chain Management: An International Journal, 21(3), 289–304. https://doi.org/10.1108/SCM-07-2015-0266