Information Sharing, Supplier Performance, Supplier Trust, and

Supplier Sinergy on Retailer

Helisia Margahana

, Hasto Dwi Erianto

,Yuli Liestyana

, and Yekti Utami

Department o

Management, Sekolah Tin

i Ilmu Ekonomi Trisna Negara, Sumatera Selatan

Universitas Pembangunan Nasional Veteran Yogyakarta

Keywords: Information Sharing, Performance Suppliers, Trust Suppliers, And Synergy Suppliers.

Abstract: This study aims to analyze the influence of Information Sharing Against supplier performance Through

Supplier Trust and Supplier Sinergy on Original Shoe Retailer in Yogyakarta and South Sumatera. The

research method used survey method used to obtain primary data through questionnaires. The sampling

technique in this study uses the census method; the object of this study is the Original Shoe Retailer in the

Special Region of Yogyakarta and South Sumatera. The results of this study indicate that information sharing

has a positive effect on supplier performance. Information sharing has a positive effect on supplier trust.

Information sharing has a positive effect on supplier synergy. Supplier trust has a positive effect on supplier

performance. Supplier synergy has a positive effect on supplier performance. Synergy suppliers are not able

to mediate the effect of information sharing on supplier performance. Supplier trust cannot mediate the effect

of information sharing on supplier performance in Original Shoe Retailer.

1 INTRODUCTION

Russell and Taylor (2011) interpret the key to success

in carrying out supply chain management is

information, communication, coordination, and trust.

Businesses must always look for ways to develop

their operational efficiency. Therefore, it is not

surprising that business people pay more attention to

suppliers to optimize supplier performance (Pooe,

Mafini, and Loury-Okoumba, 2015). Wu et al. (2010)

in Pooe et al. (2015) define supplier performance as

the ability of suppliers to provide the needs of buyers

as reflected in operational matters such as quality of

goods, delivery, responsiveness, costs, and technical

support.

Information is vital in terms of effectiveness in

business. Information can also be likened to the

lifeblood of an organization (Pooe, 2015).

Information sharing refers to the extent to which

companies openly communicate essential and

sensitive information to their business partners (Shout

al, 2012 in Pooe, 2015). Effective information sharing

among members of the supply chain is also stated as

a crucial aspect in overcoming the negative effects of

the bullwhip effect (Kelepouris, Miliotis&Pramatari,

2008 in Pooe, 2015). The bullwhip effect is the

variety and the number of requests that are

increasingly enlarged because the information is not

well understood by each recipient of information

causing costs (Russell & Taylor, 2011).

Supplier trust can be interpreted as the level of

confidence among transaction partners because they

have trusted the integrity and reality of each

(Cavusgil, Delignoul & Zhang, 2004 in Pooe, 2015).

Trust is defined as an important contributor and

facilitator for each transaction that requires mutually

beneficial engagement and cooperation with various

parties (Cheung et al., 2011 in Pooe, 2015).

Supplier synergy is another important factor that

requires a clear understanding of its relationship with

supplier performance (Pooe, 2015). Supplier synergy

is defined as the coordination and complementarity in

similar matters carried out by two or more companies,

groups, or individuals in creating business

relationships that can produce outcomes that have

superior quality values (Osanrenkhoe, 2010 in Pooe,

2015).

Small retailers usually have differences from large

competitors in competitive strategies, organizational

learning styles, and positions in their supply chain

structures. The problem often faced by small retailers

that they also compete with large retailers, especially

in terms of the selling price of goods because retailers

554

Margahana, H., Erianto, H., Liestyana, Y. and Utami, Y.

Information Sharing, Supplier Performance, Supplier Trust, and Supplier Sinergy on Retailer.

DOI: 10.5220/0009964705540559

In Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management (ICBEEM 2019), pages 554-559

ISBN: 978-989-758-471-8

small not have a large capital capacity to supply

goods as much as large retailers so the purchase price

of goods from their suppliers is higher which results

in the selling price of products can compete from

large retailers. Based on a brief interview conducted

by researchers of one member of the national shoe

community, the Indonesian Sneakers Team (Saudara

Tama). There are approximately 57 retailers of shoe

sneakers in the Special Region of Yogyakarta who

already have a physical store and join their

community. Tama said that one of the factors that can

make these shoe retailers survive and develop is by

building good relationships with their suppliers. From

this, retailers can gain more trust when buying goods

so that they get information about which goods have

good selling potential, and also get competitive

purchase prices with largeretailers that are usually

found in malls in Yogyakarta Special Region.

2 LITERATURE REVIEW

2.1 Information Sharing and

Supplier’s Performance

Information sharing enables companies to access data

in all their cross supply chains and allows companies

to collaborate in activities such as sales, production,

and logistics management. With good management of

information sharing in the supply chain is expected to

improve the company's ability to manage

relationships with partners so that it can expedite

business processes, monitor in detail all business

activities, and make business decisions with

confidence because the risks are minimized (Hsu et

al, 2008).

H1: Information sharing has an influence on

supplier performance in retailer’s original shoe-in

Yogyakarta Special Region.

2.2 Information Sharing and Supplier

Trusts

According to Hsu et al. (2008), information sharing

refers to how far sensitive and important information

in a company is available and accessible to members

in the supply chain. This important information can

be in the form of process-related information

(purchasing, operational scheduling, logistics,

business issues, etc.) or strategic information (long-

term company plans, marketing, business plan

development, and customer information). In a

previous study that examined the importance of

informal and formalin information sharing between

trading partners showed that information sharing

effective increases openness and reduces the level of

uncertainty so that trust (Brennan & Turnbull, 1999;

Handfield & Bechtel, 2002, in Hsu et al, 2008). In

building relationships with suppliers, of course, trust

is one important thing. High trust can provide a more

certain guarantee for retailers in supplying goods so

that the goods received are maintained in quality and

quantity, and the accuracy of suppliers in keeping

promises in sending goods is also more secure

(Pooeet al, 2015).

H2: Information sharing has an influence on

supplier trust in retailer

2.3 Information Sharing and Supplier

Performance

Without the exchange of information, both companies

and suppliers only buy and sell without building good

relations as partners. Therefore, information sharing

can be a bridge for companies and suppliers to build

synergies between partners to create good relations to

create added value for both parties. The results of this

study are also supported by the statement of Horvarth

(2001) in Pooe at el (2015) which states that the key

to creating synergy between partners is to build a

desire to share useful information with partners in the

supply chain.

H3: Information sharing has an influence on

synergy suppliers on retailers

2.4 Supplier Trust and Supplier

Performance.

According to Deutsch (1958); Gattiker, Huang, and

Schwarz (2007) in Terpendet al (2012), trust is

defined as a combination of trust in honesty between

two or more parties, and also the belief that the other

party will not betray the party related to it despite

having the opportunity to do so. In managing good

relationships with business partners, trust between

partners has the effect of mutualism to increase

confidence in the abilities and work done by each

related member (Johnston, 2004).

H4: Supplier Trust has an influence on supplier

performance in retailers

2.5 Supplier Synergy and Supplier

Performance

Supplier synergy is defined as the ability of

coordination and harmony in activities carried out by

two or more individuals or groups in carrying out

Information Sharing, Supplier Performance, Supplier Trust, and Supplier Sinergy on Retailer

555

partnerships to create better outputs (Pooeet al, 2015).

Output Mainwhat is expected from synergy suppliers

is the level of cost savings incurred due to the

alignment of objectives between suppliers and

buyers. Based on Hoegl and Wagner (2005) in Pooeet

al (2015), synergy suppliers have a positive impact on

the ability of organizations to provide quality

products to their consumers. These effects can be

influenced by good coordination between partners to

create a competitive advantage. Wu et al. (2010) and

Yeung et al. (2013) in Pooeet al (2015) stated that

synergy suppliers can reduce or eliminate technical

errors and increase flexibility in company operations.

H5: Supplier synergy influences supplier

performance in retailers.

2.6 The Effect of Information Sharing

on Supplier Performance through

Supplier Trusts

One purpose of conducting information sharing is to

create trust between partners. According to

Chinomona and Pooe (2015), in their research, found

that strategic information distributed in a timely and

targeted manner can reduce the level of waste in the

supply chain. Copy that, trust with suppliers that are

obtained from information sharing can form the belief

that suppliers will not cheat the company and will

instead benefit the company because the company

also has complete information from suppliers so that

it can prepare plans to create better outcomes

(Panayides and Lun, 2005).

H6: Information sharing has an influence on

supplier performance through supplier trust in the

retailer shoe original in Yogyakarta.

2.7 The Effect of Information Sharing

on Supplier Performance through

Supplier Synergy

Information sharing can also be used by companies to

create relationships with suppliers through a

collaboration contract. If the company can align its

objectives with suppliers, is expected output obtained

by the company will be more efficient in terms of

costs due to increased bargaining power

(Ranganathan, 2011). When there is a cooperation

contract, the company and the supplier are also easier

to collaborate ordination to create competitive

advantage (Hoegl and Wagner, 2005 in Pooeet al,

2015)

H7: Information sharing has an influence on

supplier performance through supplier synergy at

retailersOriginal shoe in the Special Region of

Yogyakarta.

3 RESEARCH DESIGN

The framework of thought proposed for this study is

based on the independent and dependent variables

described. To further facilitate understanding of the

framework of this research, it can be seen as follows:

Figure 1: Model Research

4 RESEARCH METRHOD

This study uses quantitative research, and the data

source used in this study is the source of primary data

obtained from questionnaires. The sampling

technique used is probability sampling, namely by the

census. The sample is the same as the population in

this study, namely retailers Original shoe in the

Special Region of Yogyakarta. Amount of sample is

110 respondents.

3.1 Validity and Reliability Testing

To measure the correlation between variables, a

validity test using Pearson's product-moment was

conducted. Based on the significant value of each

item in the variable, it can be concluded that the items

used in this study are valid and reliable

3.2 Data Analysis Techniques

Models or analysis techniques used in this study are

simple linear regression, multiple linear regression,

and path analysis. For simple and multiple linear

regression, if the significance value < 0.05 means the

model has a significant effect. While the path

analysis, if the value is Sobel Test more than 1.96, it

means that the research model is significant.

ICBEEM 2019 - International Conference on Business, Economy, Entrepreneurship and Management

556

5 RESULTS AND DISCUSSION

5.1 Result of Hypothesis 1

The results of the first hypothesis testing show that

information sharing has a positive and significant

effect on supplier performance in retailers. Proven

with a coefficient of 0.239 (positive) with a

significance value of t of 0.005 (sig < 0, 05). The

results of this study are in line with research

conducted by Pooeet al (2015). Research by Pooeet al

(2015) shows that information sharing has a positive

effect on supplier performance.

5.2 Result of Hypothesis 2

The results of the second hypothesis test show that

information sharing has a positive and significant

effect on supplier trust in-retailer. Proven with a

coefficient of 0.212 (positive) with a significance

value of t of 0.030 (sig <0.05). The results of this

study are in line with research conducted by Pooe et

al. (2015). Research by Pooe et al., (2015) shows that

information sharing has a positive effect on supplier

trust.

5.3 Result of Hypothesis 3

The results of the third hypothesis test show that

information sharing has a positive and significant

influence on supplier synergy in retailers. Proven

with a coefficient value of 0.178 (positive) with a

significance value of t of 0.039 (sig <0.05). The

results of this study are in line with research

conducted by Pooeet al (2015). Research by Pooe et

al. (2015) shows that information sharing has a

positive influence on supplier synergy.

5.4 Result of Hypothesis 4

The results of the fourth hypothesis testing show that

supplier trust have a positive and significant effect on

supplier performance in retailers shoe original in the

Special Region of Yogyakarta. Proven with a

coefficient of 0.377 (positive) with a significance

value of t of 0.002 (sig <0.05). The results of this

study are not in line with research conducted by

Pooeet al (2015). Research by Pooeet al (2015) shows

that supplier trust does not influence supplier

performance.

5.5 Hypothesis Testing Results

The fourth hypothesis test results show that supplier

synergy has a positive and significant effect on

supplier performance in the retailer shoe original.

Proven with a coefficient of 0.336 (positive) with a

significance value of t of 0.013 (sig <0.05). The

results of this study are not in line with research

conducted by Pooeet al (2015). Research by Pooeet al

(2015) shows that supplier synergy does not influence

supplier performance.

Table 1. Direct Influence, Indirect Influence, and Total

Influence

Direct Influence

(P1) =

0.161 Indirect Influence

(P2 x P3) = 0.212 x 0.371 = 0.079

Total Effect

0.161 + 0.079 = 0.24

Testing on the effect of intervening/mediating

variables with the dependent variable is done by

calculating the Sobel formula, the results of the two

tests are summarized as follows. The total value of the

influence of variables information sharing on supplier

performance through supplier trust is 0.24.

Thus the t-test can be obtained as follows

t =





..

.

1.80142585

The t value of 1.80142585 is smaller than 1.96,

which means that the mediation parameters are not

significant. Then the model supplier trust mediates

the effect of information sharing on supplier

performance is not accepted. The implication of this

research is for the retailer's shoe original to be able to

increase information sharing to build trust between

partners, especially with suppliers, to create added

value for both parties.

Table 2. Direct Effects, Indirect Effects, and Total Effects

of Information Sharing on Supplier Performance mediated

by Supplier Sinergy

Direct Effects

(P1) = 0.161

Indirect Effects

(P2 x P3) = 0.178 x 0.347 = 0.062

Total Influence

0.161 + 0.062 = 0.223

Testing on the influence of intervening/mediating

variables with the dependent variable is done by

calculating the Sobel formula, the results of the two

Information Sharing, Supplier Performance, Supplier Trust, and Supplier Sinergy on Retailer

557

tests are summarized as follows. The total value of the

influence of the variable information sharing on

supplier performance through supplier synergy is

0.223. Thus the t-test can be obtained as follows

t =





..

.

 1.551181

The T-value of 1.551181 value is smaller than

1.96, which means that the mediation parameters are

not significant. Then the model supplier synergy

mediates the effect of information sharing on supplier

performance is not accepted. The implication of this

research is for the retailers to be able to increase

information sharing through cooperation contracts so

that there is a guarantee in conducting business

relationships and creating added value for the long

term.

6 CONCLUSIONS

Based on the results of the study as described in the

previous chapter, some conclusions can be drawn as

follows:

1. Information sharing has a positive effect on

supplier performance in retailers

2. Information sharing has a positive effect on

supplier trust in retailers

3. Information sharing has a positive effect on

synergy suppliers on retailers

4. Supplier trust has a positive effect on supplier

performance on retailers

5. Synergy suppliers have a positive effect on

performance suppliers at retailers

6. Supplier trust cannot mediate the effect of

information sharing on supplier performance in

retailers.

7. Synergy suppliers cannot mediate the effect of

information sharing on supplier performance in

retailers.

7 SUGGESTIONS

Suggestions from this research based on the results of

testing the research hypothesis are as follows:

1) Judging from the results of the study, it is

expected that retailers shoe can be more of the view

that the relationship between companies and suppliers

is not just buying and selling in supplying goods.

However, it is also better to build relationships

through information sharing through a contract

system to create trust and good collaboration that can

minimize waste that can be overcome and make the

company more competitive in terms of the selling

price of goods. Also, building relationships with

suppliers can create a sense of security in every

transaction with these partners so that there is no fear

that the supplier will commit fraud against the

company.

2) The results of this study are expected to be

used as a reference for further research specifically

related to operational management and the

relationship between companies and suppliers.

Because this research is limited to the geographical

scope in the Special Region of Yogyakarta where are

retailers centered in 3 districts out of 5, namely

Yogyakarta City, Sleman Regency, and Bantul

Regency, it would be better if the researcher further

expanded the geographical scope of this research

which could be a basis for comparison. Moreover, in

this study, not all hypotheses are proven so that future

research can add or replace variables or other

measurement indicators that can replace variables

that have been used in this study to obtain more

convincing study results.

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