The Influence of Information Technology on Supply Chain Resilience Through Purchasing Strategy, Production Flexibility, and Supply Chain Responsiveness

Tarigan, Ruth Srininta and Tarigan, Zefanya Valentino Bastanta and Maer, Maria Natalia Damayanti and Tarigan, Zeplin Jiwa Husada and Jie, Ferry (2024) The Influence of Information Technology on Supply Chain Resilience Through Purchasing Strategy, Production Flexibility, and Supply Chain Responsiveness. [UNSPECIFIED]

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Abstract

In todays rapidly changing business environment, companies need to be dynamic, adapting their internal processes to respond effectively to external changes. Information Technology has become crucial for businesses to enhance their ability to manage and adapt to change. This study examines East Java manufacturing companies that have heavily invested in sustainable IT systems to enhance their supply chain responsiveness and resilience through improved purchasing strategies and production flexibility. The study collected data from companies that had implemented IT for at least three years, with respondents being permanent employees with a minimum of two years experience. Analysis of 108 survey responses using SmartPLS 4 revealed significant impacts of IT implementation on purchasing strategy (0.610), production flexibility (0.363), and supply chain responsiveness (0.164). Furthermore, purchasing strategy influenced production flexibility (0.367), supply chain responsiveness (0.348), and resilience (0.166). Production flexibility also affected supply chain responsiveness (0.348) and resilience (0.343), while responsiveness impacted resilience by 0.306. These findings provide a practical contribution for functional managers in companies regarding the importance of IT investment in developing effective purchasing, production, and marketing strategies to meet market demands swiftly. The research contributes to supply chain strategy and resilience theory while highlighting the significance of strong collaboration with external partners for top management.

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