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The central role of IT capability to improve firm performance through lean production and supply chain practices in the COVID-19 era

Siagian, Hotlan and Tarigan, Zeplin Jiwa Husada (2021) The central role of IT capability to improve firm performance through lean production and supply chain practices in the COVID-19 era. [UNSPECIFIED]

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            Abstract

            Today, global competition entails companies having an advantage in supply chain networks to pursue superior performance. This work examines the link between information technology (IT) capability with the firm performance by adopting a lean production approach, vendor-managed inventory, and supply chain practices. The study has surveyed the population of the manufacturing company in East Java, Indonesia, using a questionnaire with a five-point Likert scale. A total of 111 manufacturing companies (medium and large) were selected from 5420 manufacturing companies listed in the Industrial Department of East Java. The partial least square (PLS) technique was used to analyze the data, using the SmartPLS software version 3.3. Thirteen hypotheses in this study were developed to investigate. The result revealed that all hypotheses of direct relationship were supported. IT capability directly affects lean production, vendor managed inventory, and supply chain practices. Moreover, lean production, vendor-managed inventory, and supply chain practices improve firm performance. Further analysis also indicated that all hypotheses of indirect hypotheses were supported except hypothesis one hypothesis (H9). IT capability indirectly improves firm performance through lean production, vendor-managed inventory, and supply chain practices. The result provides insight for managers and policymakers on enhancing firm performance by improving its IT capability, adopting lean production, vendor-managed inventory, and supply chain practices. This research contributes to reinforcing the supply chain management theory.

            Item Type: UNSPECIFIED
            Uncontrolled Keywords: Information technology capability, Lean production, Vendor-managed inventory, Supply chain practices, Firm performance
            Subjects: T Technology
            H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
            Divisions: Graduate Program > Economic Management
            Depositing User: Admin
            Date Deposited: 01 Aug 2021 07:00
            Last Modified: 28 May 2022 11:30
            URI: https://repository.petra.ac.id/id/eprint/19171

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