Information Sharing, Informal Contracts, and Supply Chain Performance of SMEs in Gunung Kidul Regency, Indonesia
Abstract
Supply chain performance refers to the activities to meet the end customer's requirements. This study aims to analyze the effect of information sharing and informal contracts on supply chain performance with trust as a mediating variable in silver-making SMEs in Pelemgede, Sodo, Paliyan, Gunung Kidul Regency, Special Region of Yogyakarta, Indonesia. Data were collected using a questionnaire. This study used PLS with SmartPLS 3.0 software to analyze the hypothesis. The findings indicate information sharing has a positive impact on trust. Also, trust positively impacts supply chain performance, trust mediates the impact of information sharing on supply chain performance, and the effects of informal contracts on supply chain performance. Advanced research can be done by applying the study in other SMEs fields
Â
Keywords
Full Text:
PDFReferences
Abdallah, A. B., Abdullah, M. I., & Saleh, F. I. M. (2016). The effect of trust with suppliers on hospital supply chain performance The mediating role of supplier integration, Benchmarking: An International Journal, 23(6), 1445-1471.
Beamon, B. M. (1999). Measuring supply chain performance. International Journal of Operations & Production Management, 19, 275-292.
Chang, H. H., Tsai, Y. C., & Hsu, C. H. (2013). E-procurement and supply chain performance. Supply Chain Management, 18(1), 34–51.
Chang, K.-C., Kuo, N.-T., Hsu, C. L., & Cheng, Y.-S. (2014). The impact of website quality and perceived trust on customer purchase intention in the hotel sector: Website brand and perceived value as moderators. International Journal of Innovation, Management and Technology, 5, 255-260. doi:10.7763/IJIMT.2014.V5.523.
Chen, C., Gu, T., Cai, Y., & Yang, Y. (2019). Impact of supply chain information sharing on performance of fashion enterprises An empirical study using SEM. Journal of Enterprise Information Management, 32(6), 913-935.
Chen, J. V., Yen, D. C., Rajkumar, T. M., & Tomochko, N. A. (2011). The antecedent factors on trust and commitment in supply chain relationships. Computer Standards and Interfaces, 33(3), 262–270.
Chopra, S., & Meindl, P. (2013). Supply chain management: Strategy, planning, and operation (5th ed.). Edinburg: Pearson Education Limited.
Echtelt, F., Wynstra, F., Weele, A., & Duysters, G. (2008). Managing supplier involvement in new product development: A multiple-case study. The Journal of Product Innovation Management, 25(2), 180-201.
Frankel, R., Whipple, J. S., & Frayer, D. J. (1996). Formal versus informal contracts: Achieving alliance success. International Journal of Physical Distribution & Logistics Management, 26(3), 47-63.
Ghozali., & Latan. (2015). Partial Least Square (konsep, tehnik, dan aplikasi) menggunakan program SmartPLS 3.0. Semarang: Universitas Diponegoro.
Gulati, R., & Nickerson, J. A. (2008). Interorganizational trust, governance choice, and exchange performance. Organization Science, 19(5), 688-708.
Heizer, J., & Render, B. (2014). Operations management, sustainability and supply chain management (11th ed.). Jakarta: Salemba Empat.
Katinka, B.-F., & Rosalinde, K. W. (2005). Trust under pressure, empirical investigations of trust and trust building in uncertain circumstances. USA: Edward Elgar Publishing. Inc.
Kingshott, R. P. J., & Pecotich, A. (2007). The impact of psychological contracts on trust and commitment in supplier-distributor relationships. European Journal of Marketing, 41(9–10), 1053–1072.
Knapp, C. L., Crystal, N. M., & Prince, H. G. (2003). Problems in contract law and materials. New York, NY: Aspen Publishers.
Lee, H. L., & Whang, S. (2000), Information sharing in a supply chain. International Journal of Manufacturing Technology and Management, 1(1), 79-89.
Lockamy, A., & McCormack, K. (2004). Linking SCOR planning practices to supply chain performance: An exploratory study. International Journal of Operations & Production Management, 24(12), 1192–1218.
Malhotra, D., & Murnighan, J. K. (2002). The effects of contracts on interpersonal trust. Administrative Science Quarterly, 47(3), 534–559.
Mandal, S., & Sarathy, R. (2018). The effect of supply chain relationships on resilience: Empirical evidence from India. Global Business Review, 19(3_suppl), S196–S217. doi:10.1177/0972150918758094
Mayer, R. C., Davis, J. H., & Schoorman, F. D. (1995). An integrative model of organizational trust. The Academy of Management Review, 20(3), 709–734. doi:10.2307/258792
McLeod, R. Jr. (1995). Management information systems (7th ed,). Upper Saddle River, NJ: Prentice Hall, Inc.
Poppo, L., & Zenger, T. (2002). Do formal contracts and relational governance function as substitutes or complements. Strategic Management Journal, 23(8), 707-725.
Putra, I. G. C., Kepramareni, P., & Suryandari, N. N. A. (2019). Empowerment program, entrepreneurial competence and business growth SMEs in Denpasar. Asia Pacific Journal of Management and Education, 2(2), 1-10.
Rousseau, D. M. (1989). Psychological and implied contracts in organizations. Employee Responsibilities and Rights Journal, 2(2), 121-139.
Salim, H. S. (2015). Hukum kontrak teori dan teknik penyusunan kontrak. Jakarta: Sinar Grafika.
Sekaran, U., & Bougie, R. (2017). Metode penelitian bisnis (6th ed.). Jakarta: Salemba Empat
Simatupang, T. M., & Sridharan, R. (2002). The collaborative supply chain. The International Journal of Logistics Management, 13(1), 15-30.
Susanty, A., Sirait, N., & Bakhtiar, A. (2018). The relationship between information sharing, informal contracts and trust on performance of supply chain management in the SMEs of batik. Measuring Business Excellence, 22(3), 292-314. doi:10.1108/MBE-05-2017-0019.
Tejpal, G., Garg, R. K., & Sachdeva, A. (2013). Trust among supply chain partners: A review, Measuring Business Excellence, 17(1), 51-71.
Viitaharju, L., & La¨hdesma¨ki, M, (2012). Antecedents of trust in asymmetrical business relationships: Differing perceptions between food producers and retailers. Marketing Intelligence & Planning, 30(5), 567-587.
William, I. S., & Chuong, S. C. (2014). Operations management: An Asian perspective (9th ed.). Jakarta: McGraw Hill Education dan Salemba Empat.
Wu, M.Y., Weng, Y.C., & Huang, I. C. (2012). A study of supply chain partnerships based on the commitment-trust theory. Asia Pacific Journal of Marketing and Logistics, 24(4), 690–707.
Yeung, J. H. Y., Selen, W., Zhang, M., & Huo, B. (2009). The effects of trust and coercive power on supplier integration. International Journal of Production Economics, 120(1), 66-78.
Zelbst, P. J., Green, K. W. Jr, Sower, V. E., & Reyes, P. (2009). Impact of supply chain linkages on supply chain performance. Journal of Industrial Management and Data Systems, 109(5), 665–682.
Zenger, T. R., Lazzarini, S. G., & Poppo, L. (2002). Informal and formal organization in new institutional economics. In P.Ingram, & B. S. Silverman (Eds.), Advances in Strategic Management, 19, pp. 277–305. Greenwich, CT: JAI Press.
DOI: https://doi.org/10.32535/ijabim.v7i1.1449
Refbacks
- There are currently no refbacks.
Copyright (c) 2022 Yuli Liestyana, Hadi Oetomo, Tri Wahyuningsih, Muhamad Kiki Ariyanto

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
International Journal of Applied Business and International Management (IJABIM)
ISSN 2614-7432 (Print) | ISSN 2621-2862 (Online)
DOI Prefix: 10.32535 by CrossRef
Published by AIBPM Publisher
JL. Kahuripan No. 9, Hotel Sahid Montana, Malang, Indonesia
Email: journal.ijabim@gmail.com
Phone: +62 341 366222
Website: https://aibpmpublisher.com/
Governed by
Association of International Business and Professional Management
Email: admin@aibpm.org
Website: https://www.aibpm.org/
Licensing Information
The International Journal of Applied Business and International Management (IJABIM) is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License .