Information Sharing, Supplier Performance, Supplier Trust

on Supplier Synergy

Garaika

, Dwiky Fendi Fathurahman

, Yuli Liestyana

, Tri Wahyuningsih

Department of Management, Sekolah Tinggi Ilmu Ekonomi Trisna Negara, Sumatera Selatan

Universitas Pembangunan Nasional Veteran Yogyakarta

Keyword: Information Sharing, Supplier Trust, Synergy Supplier, Supplier Performance

Abstract: This study aims to determine the effect of Information Sharing Against Supplier Performance The Mediated

By Trust Supplier and Supplier Synergy. This research uses quantitative methods. The population in this

study consisted of 45 SMEs in Wood Craft in Yogyakarta and South Sumatera, and all 105 SMEs were used

as respondents determined by a random sampling method with a saturated census technique. Data analysis

techniques using regression analysis and path analysis. Test results and analysis found that (1) Information

sharing influences supplier trust (2) Supplier trust influences supplier performance (3) Information sharing

influences supplier synergy (4) Supplier synergy influences supplier performance (5) Information sharing

influences supplier performance (6) Information sharing has an indirect effect on supplier performance

mediated by supplier trusts (7) Information sharing has an indirect effect on supplier performance mediated

by synergy supplier.

1 INTRODUCTION

In the 21st century, as it is today, progress in the

global sphere is developing more rapidly, one of

which is marked by the increasing development of

science and technology in all fields. This fact is a

positive thing because it makes every individual

demanded to be more competitive. With these

environmental conditions also affect competition in

the business world is becoming increasingly fierce,

both competition in small scale business or narrow

(regional) coverage to large-scale businesses that

have multi-national coverage. Therefore, it is very

necessary for every business person (micro or

macro) to always be up to date with the times. One

of them is by improving and applying science and

technology so that business people can continue to

maintain or increase the existence of their business.

At this time, there is a change in the paradigm of

competition, from the initial competition between

companies to competition between networks. The

process of creating value for business networks

requires support for increasing the efficiency and

effectiveness of internal business operations such as

Supply Chain Management (SCM). Pujawan and

Mahendrawati (2010), explained that the important

role of all parties starting from suppliers,

manufacturers, distributors, retailers, and customers

in creating cheap, high-quality, and fast products are

what later gave birth to a new concept of SCM.

Companies that implement SCM well will generate

new opportunities so they can reduce costs, improve

quality, be responsive to information, and delivery

costs.

Perhaps the most important yardstick for

determining success suppliers is their performance.

Wu et al.., (2010) define supplier performance as

how well the supplier supplies the product needed to

the buyer as reflected through operational results

such as quality, delivery, responsiveness, cost, and

technical support. Huang, Yen, and Liu (2014) in

Pooe et al., (2015)

Information is very important in any business,

and information has been described as the lifeblood

in organizations. Information sharing refers to the

extent to which companies openly communicate

important and sensitive information to their partners

(Shou et al., 2012 in Pooe et al.). Information

sharing has also been considered an effective

predictor of supply chain effectiveness (Zhang &

Chen 2013). In that case, a study by Hsu et al.

(2008) found that information sharing contributed

greatly to improving relations between suppliers by

Garaika, ., Fathurahman, D., Liestyana, Y. and Wahyuningsih, T.

Information Sharing, Supplier Performance, Supplier Trust on Supplier Synergy.

DOI: 10.5220/0009967303810385

In Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management (ICBEEM 2019), pages 381-385

ISBN: 978-989-758-471-8

381

facilitating efficient coordination and responsiveness

as well as the integration of system and information

partners.

Supplier trust has been defined by Cavusgil,

Deligonul, and Zhang (2004) as the belief held by

trading partners about the reliability and integrity of

one another. Trust has been defined as an important

contributor and facilitator for each transaction that

requires the involvement and collaboration of

various parties (Cheung et al., 2011 in Pooeet al..,

2015). Supplier trusts have also received the

attention of a number of scholars who have

extensively investigated their impact and relevance

in buyer-supplier relations (Bonte et al., 2008).

Supplier synergy can be defined as coordinating

and complementing similar activities carried out by

two or more companies, groups, or individuals in a

business relationship to produce results of mutual

excellence (Osarenkhoe 2010).

Some of the obstacles faced by the creative

industries in Indonesia, especially SMEs, are

obstacles to their business growth. The main

obstacles hampering the development of the creative

industry are the minimal utilization of technology,

protection of copyrights, access to raw materials,

and support from the government that has not been

maximized. The craftsmen in SMEs are also not

immune to the obstacles experienced by other SME

actors. When prior to conducting research, the

author first surveyed by interviewing several SME

owners. From the results of the interview, one of the

problems faced by SMEs there is marketing that is

not yet optimal because the craftsmen still do not

understand well with marketing online, the

craftsmen are also worried about the future

sustainability of the craft in SMEs, because the

younger generation, most of whom do not want to

continue handicraft businesses and prefer to work in

the formal sector, and the artisans are also faced

with the problem of the difficulty of getting raw

materials during certain seasons.

The objectives of this study are: (1) Knowing

and analyzing the effect of information sharing on

supplier trusts; (2) Knowing and analyzing the

influence of supplier trust on supplier performance;

(3) Knowing and analyzing the effect of information

sharing on supplier synergy;(4) Knowing and

analyzing the effect of supplier synergy on supplier

performance;(5) Knowing and analyzing the effect

of information sharing on supplier performance (6)

Knowing and analyzing the effect of information

sharing on supplier performance mediated by

supplier trusts;(7) Knowing and analyzing the effect

of information sharing on supplier performance

mediated by supplier synergy.

2 LITERATURE REVIEW

2.1 Information Sharing

It is an exchange of information between companies,

consumers, and suppliers, where information must

be easily accessed by all parties concerned (Hamid

and Ibrahim 2015). Indicator information sharing

according to Pooe et al., 2015

 Changes in order

 Inventory level.

 Constraints in business.

 Sharing knowledge.

 Sharing information in business planning

 Latest development products.

2.2 Supplier Trust

Supplier trust is defined as the willingness to take

risks and depend on partners to obtain social and

economic benefits on both sides of the organization.

Indicators for measuring supplier trust are as follows

(Pooe et al., 2015)

 Level of trust.

 Employment contract.

 Consensus.

 Trust.

 On-time delivery of goods.

 Quality of goods

2.3 Supplier Synergy

According to Hoegl and Wagner (2005), supplier

synergy positively influences the organization's

ability to provide quality products for customers.

This reflects the importance of work coordination

between suppliers to the competitiveness of the

company's supply chain. Wu et al. (2010) believe

that supplier synergy enables companies to eliminate

or reduce problems in the production process.

Indicators for measuring supplier synergy are as

follows (Pooe215 et al.):

 Relationships are well maintained.

 The efficiency of procurement costs.

 Supplier dependence on our business.

 Suppliers have bargaining power.

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382

2.4 Supplier Performance

Wibowo (2007) revealed that performance could be

seen as a process or result of work. Performance is

the process of how work takes place to achieve work

results. In an organization, there are three types of

performance, namely operational

performance(administrative performance), and

strategic performance. Wu et al. (2010) define

supplier performance as how well the supplier is in

supplying the products needed to the buyer.

Indicators for measuring supplier performance are as

follows (Pooe et al., 2015):

 Supply of good quality goods.

 Maximum service.

 Supplier location.

 Competitive prices.

 Delivery on schedule.

 Quality of goods according to order.

3 CONCEPTUAL FRAMEWORK

Figure 1. Conceptual Framework

4 RESEARCH METHODS

This study uses quantitative methods and uses

statistical calculations as the basis of analysis. The

population consisted of 105 SMEs in Yogyakarta

and South Sumatera. All of the 105 SMEs were

included as respondents. Retrieval of data in this

study using a questionnaire distributed to 105 SMEs

4.1 Validity and Reliability Testing

To measure the correlation between variables, we

use the Bartlett Test of Sphericity. When the result is

less than 0.5, this means that the correlation matrix

has a significant correlation with several variables.

The item validity statement can be seen in Corrected

item-total Correlation that, according to Azwar

(2012), can be considered as valid when R table> R

Count, or at a significance level below 0.05.

According to Ghozali (2006), a constructed

variable is considered reliable when the Cronbach

alpha level is less than 0.6.

4.2 Data Analysis Techniques

The model or technique of data analysis used in this

study is Regression Analysis and Path Analysis.

Regression analysis is a powerful statistical method

that allows you to examine the relationship between

two or more variables of interest. Path Analysis is an

extension of the multiple linear regression models.

In other words, it is an extension of regression

analysis to estimate the relationship quality between

predetermined variables on a theoretical basis. What

path analysis can do is determine the relationship

between three or more variables, and it can't be used

to confirm or reject the imaginary causality

hypothesis.

5 RESULTS AND DISCUSSION

5.1 Hypothesis 1 Test Results

The results of the first hypothesis testing show that

information sharing has a positive and significant

effect on supplier trust in SMEs. Evidenced by a

coefficient value of 0.892 (positive) with a

significance value of t of 0,000 (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.

5.2 Hypothesis 2 Test Results

The results of the second hypothesis testing show

that supplier trust has a positive and significant

influence on supplier performance in SMEs.

Evidenced by a coefficient value of 0.623 (positive)

with a significance value of t of 0,000 (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 Hypothesis 3 Test Results

The results of the third hypothesis test show that

information sharing has a positive and significant

impact on supplier synergy in SMEs. Evidenced by a

coefficient value of 0.431 (positive) with a

significance value of t of 0,000 (sig <0.05). The

Information Sharing, Supplier Performance, Supplier Trust on Supplier Synergy

383

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 synergy.

5.4 Hypothesis 4 Test Results

The results of the fourth hypothesis testing show that

supplier synergy has a positive and significant impact

on supplier performance in SMEs. Evidenced by a

coefficient value of 0.908 (positive) with a

significance value of t of 0,000 (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 supplier synergy has a positive

influence on supplier performance.

5.5 Hypothesis 5 Test Results

The results of the first hypothesis testing show that

information sharing has a positive and significant

effect on supplier performance in SMEs. Evidenced

by a coefficient value of 0.844 (positive) with a

significance value of t of 0.000 (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 performance.

5.6 Hypothesis 6 Test Results

The analysis model path of phase 1 is to explain the

effect of information sharing (X) to the variable

supplier trusts (Y) has the following formula:

Z = 2,006 + 0.892X1

Table 1: Results of Path Analysis for Phase 1

The analysis model path phase 2 is to explain the

effect of information sharing (X), supplier trust (Z)

on supplier performance has the following formula

Y = 0,400X1 + 0,541 X2

Table 2: Results of Path Analysis for Phase 2

The overall estimation results of the hypothesis

relationship model among the three variables in this

study can be presented in the following path

diagram.

Diagram 1.

5.7 Relationship between Variables

Table 3. Direct Effect, Indirect Effect, and Total

Effect of Reward on information sharing are

mediated by supplier trust3. Direct

Table 3: Effect, indirect effect, and the total effect

5.8 Hypothesis 7 Test Results

The analysis model Path phase 1 is to explain the

effect of information sharing (X) on the variable

supplier synergy (Y) has a formula as the following:

Z = 5.001 + 0.516.

Table 4: Results of Path Analysis for Phase 1

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384

Model analysis path phase 2 to explain the effect

of information sharing (X), supplier synergy (Z) on

supplier performance has the following formula

Y = 0.534X1 + 0.383 X2.

Table 5: Results of Path Analysis for Phase 2

The overall estimation results of the hypothesis

relationship model among the three variables in this

study can be presented in the following path diagram.

Diagram 2.

5.9 Relationship between Variables

Table 6. Direct Effect, Indirect Effect and Total

Effect of Reward on information sharing are

mediated by supplier synergy

Table 6: Direct effect, indirect effect, and the total effect

6 CONCLUSION

Based on the results of data analysis and discussion,

the following is the conclusion of this research:

 Information sharing has a direct effect on

supplier trust.

 Supplier trust has a direct effect on supplier

performance

 Information sharing has a direct effect on

supplier synergy

 Supplier synergy has a direct effect on supplier

performance

 Information sharing has a direct effect on

supplier performance

 Information sharing has an indirect effect on

supplier performance mediated by supplier

trust

 Information sharing affects indirectly to

supplier performance mediated by supplier

synergy

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