The Effect of Purchasing Strategy Creativity and Supply Chain Practices on Business Performance

Tarigan, Zeplin Jiwa Husada and Sebayang, Firmanta (2021) The Effect of Purchasing Strategy Creativity and Supply Chain Practices on Business Performance. [UNSPECIFIED]

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Abstract

The current global competition has forced manufacturing companies to implement purchasing strategies in the pursuit of competitive advantage. The ability of the company to integrate the supply chain enables the company to provide the effectiveness and efficiency in the business process of the company. This research examines the effect of purchasing strategy, supply chain practices, and green supply chain on business performance. The study collects data from 107 manufacturing companies in East Java, Indonesia, which has a deep concern for a green environment. Data collection used a questionnaire designed with a five-point Likert scale. Data analysis used the PLS technique. The results found that all indicators of each variable are considered valid and reliable. Hypothesis testing found that purchasing strategy had a significant impact on supply chain management practices and green supply chains but did not have a direct impact on economic performance. Supply chain management practices does not have an impact on green supply chain management but does have an impact on improving economic performance. The green supply chains also have an impact on economic performance. This finding provides an insight for the practitioner on how to improve firm performance. This study also contributes to the current research in supply chain management.

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