The Role Of Buyer-Supplier Relationship in Enhancing The Influence of Top Management Involvement on Supply Chain Risk Management

Siagian, Hotlan and Tarigan, Zeplin Jiwa Husada and Hee, Han Tae (2018) The Role Of Buyer-Supplier Relationship in Enhancing The Influence of Top Management Involvement on Supply Chain Risk Management. In: International Conference on Management and Entrepreneurship 2018, 27-07-2018 - 27-07-2018, Yogyakarta - Indonesia.

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Abstract

The Role Of Buyer-Supplier Relationship in Enhancing The Influence of Top Management Involvement on Supply Chain Risk Management. This paper aims to examine the role of the buyer-supplier relationship in improving the impact of top management involvement in the supply chain risk management. The study used 44 export-oriented manufacturing companies domiciled in East Java of Indonesia. The respondent is from the top management level of each company. Data collection used a questionnaire designed with five-item Likert scale. Data analysis used the partial least square technique with SmartPLS software version 3.0 to examine the hypotheses. The finding revealed that top management involvement affects supply chain risk management, top management involvement affects the buyer-supplier relationship, and buyer-supplier relationship affects supply chain risk management. The last finding is that buyer-supplier relationship empirically mediates the effect of top management involvement. This paper paves the way for the manager in improving supply chain risk management by practicing top management involvement and development of a relationship with the supplier.

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