The Effect of Trust Suppliers on Firm Performance through Information Sharing and Collaboration in Manufacturing Companies

Information technology enables companies to build good communication and coordination with
external partners. The information system owned by the company can provide fast information for
management in determining the companys direction. This research proposed a model to investigate
the effect of trust suppliers on firm performance through the mediation of information sharing and
collaboration. For this purpose, this study postulates nine hypotheses to be examined. Eighty-five
(85) manufacturing companies have been surveyed as the sample in this study. Data collection used
a questionnaire designed with a five-point Likert scale. Data analysis used smartPLS software to
examine the hypotheses. The result indicated that all hypotheses were supported as follows. Trust
supplier, information sharing, and collaboration directly affect firm performance. Interestingly,
information sharing and collaboration mediate the influence of trust in suppliers on firm
performance. These findings provide a managerial implication on how to improve the firm
performance by establishing trust in the supplier, sharing information, and developing collaboration
between partners. This study also contributes to the current research in supply chain management