Supply Chain Management in Determining Operational Performance

with the Moderation Role of Manager

Yuyus Yudistria and Deddy Rusyandi

STIE EKUITAS, Bandung, West Java, Indonesia

Keywords: SCM, Manager, Performance

Abstract: The shoe industry in the Cibaduyut area is one of the mainstay industries and the backbone for the economy

of the Bandung area. Supply Chain Management is important because one of the elements that has a

significant role as one of the keys to success in success plays an important role in the effective utilization of

Supply Chain Management and the progress of developing associations with the development of competition.

This study aims to determine operational performance and the relationship between Supply Chain

Management and the role of Manager. The role of Managers has an important role in Supply Chain

Management activities as decision makers and decision makers. Managers in making and making inaccurate

decisions will mislead companies in a competitive environment. Based on the sampling method using

purposive sampling in this research period, a sample of 146 shoe industry companies in the Cibaduyut area

was obtained. The results showed that there was a significant and positive influence between Supply Chain

Management on operational performance after being moderated by the manager so that the moderating role

of the manager resulted in the integration of Supply Chain Management positively in influencing operational

performance.

1 INTRODUCTION

Supply Chain Management is a concern for

researchers, the importance of Supply Chain

Management is because it is one element that has a

significant role as one of the keys to organizational

success. Supply Chain Management directly affects

the company's performance. The competitive

business environment has encouraged companies to

emphasize all functions of Supply Chain

Management from raw materials, logistics to finished

goods, so for the success of organizational

performance, Supply Chain Management is needed.

(Furqon, C., Manajemen, P. S. and Indonesia, 2014)

The role of Manager plays an important role in the

effective utilization of Supply Chain Management

and the advancement of the majority of associations

with the development of competition. Operational

performance depends on an effective supply chain as

efficient logistics management contributes to cost

reduction. Managers assist in achieving goals for an

effective supply chain including decision makers.

The role of an effective manager yields many benefits

including in making the right decisions and

collaborating with stakeholders and business

participants at the operational level. The company's

ability to utilize and implement a Supply Chain

Management strategy that produces benefits for cost

reduction, production slope, flexibility, introduces

innovation, strengthens associations and relationships

between stakeholders must be included at every level

for the achievement of objectives. (Furqon, C.,

Manajemen, P. S. and Indonesia, 2014).

The role of the manager must be able to apply

Supply Chain Management in operational

performance by considering the company's goals. So

that the role of the manager must be more effective

and able to bring about changes in Supply Chain

Management, in making effective decisions in Supply

Chain Management according to the parameters of

the role in the effectiveness of Supply Chain

Management. Decision making is found to be harmful

and useless for the company like timely decision

based on the timely availability of the company. The

role of Manager plays an important role in operational

performance by sharing the right policies that will

help for the right decisions. Research that has been

conducted by (Sharif & Irani, 2012) on the value of

power carried out by a supply chain manager,

proposes an analysis model of the level of supply

Yudistria, Y. and Rusyandi, D.

Supply Chain Management in Determining Operational Performance with the Moderation Role of Manager.

DOI: 10.5220/0011865200003582

In Proceedings of the 3rd International Seminar and Call for Paper (ISCP) UTA â

Z45 Jakarta (ISCP UTA’45 Jakarta 2022), pages 41-46

ISBN: 978-989-758-654-5; ISSN: 2828-853X

 2023 by SCITEPRESS – Science and Technology Publications, Lda. Under CC license (CC BY-NC-ND 4.0)

chain leadership ability as part of the supply chain

manager's responsibility function. (Akdogan &

Demirtas, 2014) stated that the supply chain strategy

needs to consider the strategy and the contribution of

supply chain management cannot be implemented

unless it is supported by the managerial team, so that

managerial attributes will have an impact on supply

chain performance. (Jia, Gong, & Brown, 2018) The

combined effect of supply chain leadership and

governance mechanisms affects supply chain

structure and supply chain learning and MNCs

change supply chain structure. And (Jonathan

Gosling, Fu Jia, Yu Gong, 2017) conceptually

describes how a company that focuses on taking a

leadership role initiates and disseminates sustainable

practices in the supply chain. According to (Jakhar,

2014) Identify important performance measurement

metrics for the supply chain of the textile and apparel

industry. (Regina, Suharto, 2013) there is a

significant relationship between supply chain to

competitiveness, Supply Chain Management to

company performance, and Competitive Advantage

to company performance. As well as research (J.

Rachbini, 2017) In improving the performance of a

company, a Supply Chain Management strategy is

needed that can be applied through integrated

information, company and processes.

This research is important to do to know 1). The

influence of supply chain management on operational

performance; 2). How is the moderating role of

managers in the influence of supply chain

management on operational performance?

2 LITERATURE REVIEW

Supply Chain Management (SCM) is a field of

study/research that is at the level of effectiveness and

efficiency in the flow of goods, information and

funding flows that occur together so as to unite

Supply Chain Management with various parties

involved (Pujawan, I., N., 2010). Supply Chain

Management is an activity of processing raw

materials into goods in process or semi-finished

goods and finished goods then sending these products

to consumers through the distribution system. This

activity includes the purchasing function that relates

between suppliers and distributors. (Heizer, J., dan

Render, 2014).

Performance is a description of a level of

achievement in the implementation of a program of

activities or company policies in realizing the vision

and mission of the organization (Moeheriono, 2012).

(Sedarmayanti, 2017) reveals that a performance is

the result of work that can be achieved by a group or

person in an organization that is in accordance with

the authority and responsibility of each field in an

effort to achieve company goals, which does not

violate the law and is in accordance with the law. with

morals and ethics. The company's operational

performance is something that the company produces

within a certain period by referring to predetermined

standards. Business performance refers to how much

a company is market-oriented and profit-oriented

(Schroeder, Roger G, Susan Meyer Goldstein, 2012).

The role of the Manager is a factor that influences

the success of the organization in achieving its goals.

the role of leadership is a factor that greatly influences

the creation of work effectiveness. Even today it can

be said that the progress achieved and the setbacks

experienced by an agency are largely determined by

the role of its leader which can be seen from its

leadership style. This shows that leadership has a very

important role in achieving the effectiveness of an

organization's work. If a leader is able to apply the

right leadership and in accordance with the existing

situation and conditions, then the employees will be

able to work comfortably and with high enthusiasm.

Effective leaders are seen from empirical signs such

as productive organizations. The productivity of the

organization certainly leads to the achievement of the

vision and mission of the organization. Effective

leaders make organizations run better. According to

(Vietzal Rivai, 2013: 164) states that leadership is the

ability of a leader to influence others by provoking

the growth of positive feelings in the people he leads

to achieve the desired goals. Meanwhile, according to

George R. Terry (Thoha, 2014: 5) means that the Role

of Leadership is an activity to influence people so that

they are directed to achieve organizational goals. The

role of leadership in running an organization is

inseparable from the strategy of long-term goals to be

achieved. So that short-term decisions should support

the supply chain towards these strategic goals

(Pujawan, I., N., 2017:34). Research conducted by

(Sharif & Irani, 2012) Analysis of achievement,

affiliation and power values reflected by supply chain

managers. Propose a post analysis model for supply

chain leadership capabilities as a function of supply

chain manager responsibilities. (Akdogan &

Demirtas, 2014) states that the supply chain strategy

must be considered in the overall strategy and also the

contribution of supply chain management cannot be

realized unless supported by the managerial board.

And Shows that managerial attributes have an impact

on supply chain performance. (Jia et al., 2018) The

combined effect of supply chain leadership and

governance mechanisms affect supply chain structure

ISCP UTA’45 Jakarta 2022 - International Seminar and Call for Paper Universitas 17 Agustus 1945 Jakarta

and supply chain learning and MNCs change supply

chain structure. As well (Jonathan Gosling, Fu Jia, Yu

Gong, 2017) conceptually describes how focused

companies that take leadership roles initiate and

disseminate sustainable practices in supply chains

Based on several theories and the results of previous

research that the Role of Leadership has an influence

on the effectiveness of the implementation of Supply

Chain Management. This means that the leadership

role has an impact on the effectiveness of the

implementation of Supply Chain Management.

3 METHODS

This study uses a quantitative descriptive method.

The implementation stages include Data Inventory

and Initial Information, which is carried out to

understand data availability. This is done by digging

up various information related to the condition of the

study area in Cibaduyut, Bandung City; Literature

Review, which is a follow-up to the first stage,

especially in relation to the literature on Supply Chain

Management, Managers and Operations

Performance. Design Research needs, to obtain

information that will be used in analyzing aspects of

General Information, Aspects related to Supply Chain

Management, Managers and Operational

Performance in the Cibaduyut Shoes Industry.

This research is cross sectional and qualitative.

The analysis was conducted on the shoe industry in

Cibaduyut. This study determines the operational

performance of a shoe company affected by Supply

Chain Management. The shoe company in Cibaduyut

as the organizational unit that became the research

respondent. The data is collected from managers,

Supply Chain Management of shoe companies

through a questionnaire. Data were collected from

146 shoe units in Cibaduyut based on convenience

sampling technique to determine Operational

Performance. With a measurement scale each

construct was adopted from previous studies and

determined on a 5-point scale.

Figure 1: Research Model.

Manager indicator interpersonal roles

informational role decision-making; supply chain

management indicator Planning, Organizing, Goods,

Strategic Partnering; and Operational Performance

indicator Cost, Quality, flexibility, Dependability.

The measurement scale of all constructs was

adopted from the previous study using 5 scales. The

Operational Performance Scale consists of 4

Dimensions with 15 statements. The measurement

scale to determine the Manager's Role was adopted

from the study consisting of 3 dimensions with 16

statements. Supply Chain Management scale was also

adopted from the study consisting of 4 Dimensions

with 15 statements. To test the effect of this

moderating variable, use Moderated Regression

Analysis (MRA). Moderation regression analysis

aims to determine whether the moderating variable

will strengthen or weaken the relationship between

the independent variable and the dependent variable.

There are three methods used to test the regression

with moderating variables, namely the interaction

test, the absolute difference test, and the residual test.

Y= α + β

+ β

+ e

Description

Y = Operational Performance

α = Constanta

– β

= Regression Coefficient

= Supply Chain Management

= Role of Manager

E = Error Term

4 RESULTS AND DISCUSSION

Table 1: The Determination Test (R²) Supply Chain

Management.

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of

the Estimate

1 .814

.662 .660 5.249

a. Predictors: (Constant), Supply Chain Management

The Determination Test (R²) as shown in table 1,

produces the adjusted R² value is 0.660 which means

the influence of the independent variable namely

supply chain management has an effect on

Operational Performance by 66%. The results of R2

of 66% indicate that the role of supply chain

management is quite strong in influencing operational

performance in the Shoe Industry in the Cibaduyut

Supply Chain Management in Determining Operational Performance with the Moderation Role of Manager

Region. The company's operational performance in

the Cibaduyut Shoes industry increases when they

implement supply chain management, where supply

chain management integrates manufacturing

operational activities ranging from: product

development; procurement; planning & control;

production; and distributions. By combining these

activities, operations can be carried out effectively

and efficiently.

The Supply Chain Management makes a

dominant contribution to Operational Performance,

this shows that Operational Performance depends on

the Effectiveness of the Implementation of Supply

Chain Management. The high contribution of the

Effectiveness of the Implementation of Supply Chain

Management to Operational Performance is in

accordance with the conditions of the descriptive

analysis on the Effectiveness of the Application of

Supply Chain Management which, although it is in a

fairly good range, the dimensions that make up the

Effectiveness of the Implementation of Supply Chain

Management are mostly in the category of good

enough to good, namely the Planning dimension. with

indicators of Level of Planning Clarity, Dimensions

of Inventory (Goods) with indicators of Inventory of

goods that have not been sold/not yet sold, and

dimensions of Organizing (Organizing) with

indicators of levels of capital and resources.

The results of this study are in line with the theory

presented by Heizer & Render (2004) in (Widyarto,

2012) one of the Supply Chain Management activities

includes the purchasing function which is related

between suppliers and distributors and will have an

impact on company performance. According to

(Wibowo, 2016: 67) reveals, performance can be seen

as both a process and a result of work, so that it can

be said that the effectiveness of the time the work

process takes place will determine the output.

According to (Moeheriono, 2012: 63) Operational

performance is related to the use of each resource

used by the company, namely how optimal the use is

to achieve profits or achieve the vision and mission.

Table 2: The Determination Test (R²) Manager Moderation.

Model Summary

Model R

Square

Adjusted R

Square

Std. Error of

the Estimate

1 .830

.689 .682 5.073

a. Predictors: (Constant), Supply Chain

Managemen"Manager, Manager, Supply Chain

Management

The Determination Test (R²) as shown in table 2,

produces the adjusted R² value is 0.682, which means

the effect of the moderating variable namely

Managers in increasing the influence of supply chain

management on Operational Performance from 66%

to 68.2%. This means that Inner Managers can

increase the influence of supply chain management

on operational performance. Managers have the main

task of ensuring all the needs for production factors

are met with the minimum costs incurred without

reducing the quality of production, which in turn

distributes these products through distribution

channels.

The results of this study are in line with the theory

presented (Alex S. Nitisemito, 2014: 189) that the

role of leadership has a positive influence on other

people to make more effort in a number of tasks or

change their behavior. And according to (Robbins,

2011) the Role of Leadership also requires an

initiative to act which produces a consistent pattern in

order to find a solution to a common problem. This

indicates that the Informational aspect of the

Leadership Role is in good condition, because the

Informational dimension of footwear SMIs in the

Leadership Role is good. Based on these conditions,

it proves that the role of leadership contributes to the

Effectiveness of the Implementation of Supply Chain

Management, so that the better the role of leadership,

the Effectiveness of the Implementation of Supply

Chain Management will also be better. Thus, the role

of leadership needs to be optimized, especially in the

aspect of making or decision-making, with the

optimal role of leadership in the aspect of making or

decision-making, the leader has the initiative to act

which results in a consistent pattern in order to find a

solution to a problem, so as to achieve the goal

company. With a good leadership role will have an

impact on the effectiveness of the implementation of

Supply Chain Management.

ISCP UTA’45 Jakarta 2022 - International Seminar and Call for Paper Universitas 17 Agustus 1945 Jakarta

Table 3: F Statistic Test.

ANOVA

Model

Sum of

Squares df

Mean

Square F Sig.

1 Regression 8082.864 3 2694.288 104.688 .000

Residual 3654.550 142 25.736

Total 11737.414 145

a. Dependent Variable: Operational Performance

b. Predictors: (Constant), Supply Chain Managemen"Manager,

Manager, Supply Chain Management

Table 3 shows that the significance value of the

supply chain management interaction variable with

internal managers is 0.035 or smaller than 0.05, and

has a fairly high coefficient value, it shows that the

role of managers in being able to moderate the

influence of supply chain management on operational

performance.

Supply Chain Management variable has a very

significant influence on Operational Performance in

the Footwear Industry. Supply Chain Management

contributes to Operational Performance, it shows that

Operational Performance on Supply Chain

Management. The high contribution of Supply Chain

Management to Operational Performance in

accordance with these results is supported by

statistical testing).

The results of this study are in line with the theory

presented by Heizer & Render (2004) in (Widyarto,

2012) that one of the Supply Chain Management

activities includes the purchasing function related to

suppliers and distributors and will have an impact on

company performance. According to (Wibowo,

2016), performance can be seen as both a process and

a work result, so it can be said that the effectiveness

of the work process time will determine the work

(output). According to (Moeheriono, 2012)

Operational performance is related to the use of every

resource used by the company, namely how much is

the maximum use to achieve profit or achieve the

vision and mission.

Based on these conditions, it proves that Supply

Chain Management contributes to Operational

Performance, so that the better the Supply Chain

Management, the better the Operational Performance.

Thus, in improving operational performance, it is

necessary to improve Supply Chain Management.

Moderation of the Manager's Role contributes to

Supply Chain Management, it shows that Supply

Chain Management depends on the Manager's Role.

The small contribution of the Manager's Role to

Supply Chain Management. These results are

supported by statistical testing.

The results of the study are in line with the theory

presented (Alex S. Nitisemito, 2014) The role of the

manager has a positive influence on others to do more

in numbers or change their behavior. And according

to (Robbins, 2011) the role of leadership also requires

an initiative to act that produces a consistent pattern

in order to find a way to solve a common problem.

this has had that the Manager's Role from the

Informational aspect was in good condition, the

Informational dimension in the footwear in the

Manager's role was good.

Based on these conditions, it proves that the

Manager's Role contributes to Supply Chain

Management, so that the Manager's Role in Supply

Chain Management will also get better. Thus, the

Manager's role needs to be optimized so that it has an

impact on Supply Chain Management and

Operational Performance.

5 CONCLUSIONS

The influence of Supply chain management on

operational performance resulted in the value of

RSquare (R

) in the first regression equation of 0.662

so it can be said that the Supply chain management

variable on the performance of the operational

variable has an effect of 66.2% These results proves

that Supply Chain Management contributes to

Operational Performance, so that the better the

Effectiveness of the Implementation of Supply Chain

Management, the better the Operational Performance.

Thus, in improving operational performance, it is

necessary to increase Supply Chain Management,

especially in the aspect of partnering strategy, in this

case, increasing capital, having capital will have an

impact on the products produced and will have an

impact on operational performance, one of which will

be increased product quality.

After the moderating variable (the Manager's Role

Variable in the regression equation, the two R

Square

) values increase to 0.689 or 68.9%. Thus, it can

be said that the "hypothesis is accepted". moderation)

will be able to strengthen or increase the influence of

the Suppy Chain Management variable on

Operational Performance. The leadership role

requires the development of methods as a liaison

between employees and can increase the productivity

of workers in carrying out their main tasks and

functions.

Supply Chain Management in Determining Operational Performance with the Moderation Role of Manager

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ISCP UTA’45 Jakarta 2022 - International Seminar and Call for Paper Universitas 17 Agustus 1945 Jakarta